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, you’ll learn how long FTB liens last, how they impact your credit and finances, and how to get help removing or resolving California FTB tax liens so you can move forward with confidence.

💡 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 as part of a step-by-step lien removal process
• Coordinate lien releases with county offices and help you see how liens fit into California’s tax collection process
• Work to reduce penalties while resolving a lien
• Help you understand the agency’s lien filing procedures so you can avoid future surprises
• Restore your financial reputation

📞 Call 657-218-5700
🌐 www.orangecounty.cpa

📣 About the Author

Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.

He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.

With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.

Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.

Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.

📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.