How Long Does an FTB Tax Lien Stay on Your Record
Introduction: Tax Liens Don’t Just Hurt Your Wallet — They Haunt Your Credit Too
If you’ve received a notice that the California Franchise Tax Board (FTB) has filed a state tax lien against you, you might be wondering:
“How long is this going to stay on my record?”
And more importantly:
“Can I remove it?”
In this guide, we’ll explain how long FTB liens last, how they impact your credit and finances, and what Orange County taxpayers can do to remove them and move forward.
💡 What Is an FTB Tax Lien?
An FTB lien is a legal claim against your property (real and personal) due to unpaid California state taxes.
- It attaches to your home, vehicles, bank accounts, and business interests
- It becomes public record
- It may show up on credit reports, background checks, and title searches
👉 How to Remove an FTB Tax Lien in California
📍 How Long Does an FTB Lien Stay on Your Record?
Here’s what you need to know:
✅ 1. Active FTB Liens Stay Until the Tax Debt Is Paid
An FTB lien stays on record until:
- You pay the tax in full, OR
- You settle the debt through an Offer in Compromise, OR
- The statute of limitations expires, AND
- You or your representative files for lien release or withdrawal
There is no automatic expiration.
✅ 2. After Payment, the Lien Remains Until You Request a Release
Even after you pay your balance:
- The lien does not disappear immediately
- You must request a Certificate of Release of Lien
- It can take 30 days or longer to be removed from public record
✅ 3. FTB Liens May Appear on Credit Reports for Years
While credit reporting agencies technically no longer display tax liens as of 2018, many lenders, landlords, and background screening companies still search public lien records via:
- LexisNexis
- PACER
- County recorder databases
This means your lien can follow you for years even after it’s satisfied — unless you proactively remove it.
🕒 Statute of Limitations on California Tax Debt
The FTB generally has 20 years from the date of assessment to collect a tax debt.
If the debt is not paid or settled within that time, the FTB may allow the lien to expire — but:
- They may renew the assessment clock via additional enforcement
- Waiting for expiration is risky and often leads to escalated collections
⚠️ What an Active Lien Can Prevent You From Doing
- Selling or refinancing your home
- Taking out a business or personal loan
- Leasing office space
- Qualifying for federal contracts
- Securing employment (if your role involves fiduciary duty)
🔁 What Happens After the Lien Is Released?
Once paid, the FTB should issue:
- Certificate of Release of Lien (usually within 30 days)
- This can be filed with the county recorder to clear your record
- It’s your responsibility to notify financial institutions or potential lenders
🛠️ Can I Get a Lien Withdrawn or Expunged?
Yes — under certain conditions:
✅ 1. If It Was Filed in Error
If the lien was incorrect or based on outdated information, you may request a full withdrawal.
✅ 2. If You Settle Through Offer in Compromise
Once your Offer is accepted and paid in full, the FTB typically releases the lien.
👉 FTB Offer in Compromise Success Rates & Mistakes to Avoid
✅ 3. If the Lien Creates Financial Hardship
In rare cases, the FTB may withdraw a lien if it prevents access to housing, healthcare, or basic financial survival.
👉 How to Qualify for a California FTB Hardship Deferral
📈 How to Improve Credit After a Tax Lien
- Get the Certificate of Release
- File it with the county recorder
- Request updates to public records reporting services
- Work with a CPA to review and improve your financial profile
🧭 How Boulanger CPA Helps Orange County Taxpayers
We help taxpayers in Anaheim, Santa Ana, Irvine, Tustin, and across California:
- Respond to FTB lien notices
- Negotiate lien removal or settlement
- File for Offer in Compromise or payment plans
- Coordinate lien releases with county offices
- Help you restore your financial reputation
📞 Call
657-218-5700
🌐
www.orangecounty.cpa
Frequently Asked Questions
How long does an FTB lien last in California?
Until the debt is paid, settled, or the statute of limitations expires (generally 20 years). It won’t go away automatically.
Will my lien disappear after I pay my taxes?
No. You must request a Certificate of Release and ensure it is properly recorded with the county.
Can I get a lien withdrawn completely?
Yes — in cases of error, hardship, or after a successful Offer in Compromise.
Does a tax lien affect my credit score?
While tax liens are no longer shown on standard credit reports, they remain in public records and are visible to lenders, landlords, and background screeners.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, based in Orange County, California.
With over a decade of experience helping individuals and businesses resolve serious IRS and State tax issues, Marc specializes in tax resolution strategies including Offers in Compromise, wage garnishment relief, and back tax compliance.
He is licensed as a Certified Public Accountant in both California and Oklahoma, and has a proven track record of helping clients settle complex tax debts and regain financial stability.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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