FTB Tax Lien vs Judgment Lien – Know the Difference
Not All Liens Are the Same — And One Comes Without a Judge
If you’re worried about a lien being filed against your home, your business, or your finances, the first question you should ask is:
“What kind of lien is it — a tax lien or a judgment lien?”
Because while both can block financing, show up on title reports, and damage your credit… they are very different in terms of how they’re created, enforced, and resolved.
In this post, we’ll break down the key differences between an FTB tax lien and a California judgment lien, and what Orange County taxpayers can do if either one is filed against them.
What Is a Lien?
A lien is a legal claim on your property that serves as security for a debt you owe.
If someone has a lien against you, they can:
- Prevent you from selling property without paying the debt
- Interfere with refinancing or borrowing
- File additional collection actions (like levies or garnishments)
What Is an FTB Tax Lien?
A Franchise Tax Board (FTB) lien is a statutory lien filed by the State of California when you owe unpaid income tax, franchise tax, or other FTB-enforced balances.
Key characteristics:
- Created without a court order
- Filed automatically once a tax debt is “legally enforceable”
- Recorded with the county recorder’s office
- Applies to real estate, vehicles, business interests, and more
👉 How Long Does an FTB Tax Lien Stay on Your Record?
What Is a Judgment Lien?
A judgment lien results from a civil court judgment — usually after:
- A lawsuit by a creditor
- A small claims or collections case
- An unresolved business or contract dispute
The lien is created when:
- A court enters a judgment against you
- The creditor records an Abstract of Judgment with the county
FTB Tax Lien vs Judgment Lien – Side-by-Side Comparison
| Feature | FTB Tax Lien | Judgement Lien |
|---|---|---|
| Origin | Tax debt | Civil lawsuit judgment |
| Court involvement | ❌ No court required | ✅ Court judgment required |
| Issued by | California Franchise Tax Board | Private creditor (via court) |
| Recorded with | County recorder’s office | County recorder’s office |
| Credit impact | Can affect loan approvals and title reports | Same |
| Expiration | Usually 10–20 years unless renewed | 10 years (renewable) |
| Release method | Pay or settle tax debt | Pay or satisfy civil judgment |
How Does the FTB File a Tax Lien?
The process:
- You fail to pay your tax debt
- The FTB sends multiple notices (NPA, Demand for Payment)
- The balance becomes legally enforceable
- The FTB files a lien in the county where you own property
💡 No judge. No hearing. No trial.
👉 What Happens If You Ignore FTB Notices
How Does a Judgment Lien Happen?
- A person or business sues you in civil court
- They win and receive a monetary judgment
- They record the judgment as a lien on your property
This applies to:
- Credit card lawsuits
- Vendor disputes
- Personal loans
- Evictions or rent judgments
Can Either Lien Result in a Forced Sale?
- Judgment liens may lead to wage garnishments or asset seizure through a court process
- FTB liens do not usually result in forced sales, but can prevent property transfer until paid
How to Remove a Lien
Removing an FTB Tax Lien
You must:
- Pay the balance in full or
- Settle the debt through an Offer in Compromise
- Request a Lien Withdrawal (if the lien was filed in error or causes undue harm)
👉 How to Remove an FTB Tax Lien in California
Removing a Judgment Lien
You must:
.
- Pay the debt in full
- Settle and obtain a Satisfaction of Judgment
- File the release with the county recorder’s office
How Boulanger CPA Helps Orange County Clients
We help individuals and business owners across Irvine, Anaheim, Santa Ana, Fullerton, and beyond:
- Identify lien type and creditor
- Negotiate settlements with the FTB or private parties
- Request lien releases or withdrawals
- Prepare Offers in Compromise
- Protect assets and credit
📞 Call
657-218-5700
🌐
www.orangecounty.cpa
Frequently Asked Questions
What is the difference between a tax lien and a judgment lien?
A tax lien is filed by a government agency, like the FTB, for unpaid taxes. A judgment lien is filed by a private creditor after obtaining a court judgment. Both create legal claims against your property, but they originate differently.
Which is more serious—a tax lien or a judgment lien?
Both are serious, but tax liens often signal more aggressive enforcement. The FTB can levy your bank account or wages without court approval, while a private creditor must go through post-judgment procedures.
Can a tax lien and a judgment lien exist at the same time?
Yes. It’s possible to have both types of liens on your property. For example, you might owe taxes to the FTB and have an unrelated judgment from a civil lawsuit or unpaid loan.
How long do these liens stay on my record?
Tax liens can remain until the balance is paid or released by the FTB. Judgment liens in California typically last 10 years and can be renewed. Both impact your credit and ability to transfer property.
Can a CPA help remove or resolve a tax lien?
Absolutely. A CPA can negotiate with the FTB, request a lien release, or pursue resolution options like payment plans or Offers in Compromise. They can also coordinate with attorneys if a judgment lien is also involved.
📣 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.
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