FTB vs IRS – Who Hits Harder in California?

Marc Boulanger • July 10, 2025

If you're behind on taxes, you might assume the IRS is the most aggressive collection agency out there. But in California, you also have to contend with the Franchise Tax Board (FTB) — and they play by their own rules.


So which one should you worry about more?


The IRS may be larger — but the FTB is faster, more automated, and often more relentless when it comes to California taxpayers.


In this guide, we’ll compare:


  • How each agency enforces collections

  • Who’s faster to levy your bank account or garnish wages

  • Which offers better resolution options

  • How they coordinate against you

  • What you can do to stop both

 IRS vs FTB – Side-by-Side Comparison

Category IRS FTB
Jurisdiction Federal (nationwide) California (state only)
Common Tax Types Income tax, payroll tax, business tax Personal income tax, entity tax
Notice Sequence CP14 → CP504 → Letter 1058 FTB 4905 → FTB 4930 → Final Notice
Time to Collection Dave Often 1–2 months after notice
Bank Levies Yes – requires Final Notice Yes – often issued quickly and without warning
Wage Garnishment Yes – up to 25% Yes – up to 25% or more of disposable wages
Appeals Available CDP & CAP hearings Limited; OTA for final disputes
Offer in Compromise Available for most taxpayers Available only in hardship or closed-business cases
Coordination IRS may share info with FTB FTB often piggybacks off IRS actions
Public Perception Scary but slow Less known but more aggressive locally

Why the FTB Often Hits First

The FTB uses advanced matching systems with:


  • IRS 1099 and W-2 databases

  • Franchise/business registration records

  • Employment Development Department (EDD) data

They may assess you before the IRS ever does.


Example:
A suspended LLC with unpaid fees may trigger an FTB levy even if no income tax return was filed yet.


Which Agency Gives You a Better Shot at Relief?

Relief Option IRS FTB
Offer in Compromise Yes – widely used Limited to closed cases only
Payment Plan Yes – flexible terms Yes – shorter terms preferred
Currently Not Collectible Yes – hardship eligible Rare and case-specific
Penalty Abatement Yes – first-time & reasonable cause Yes – for documented cause
Fresh Start Programs Available Not applicable

Pro Tip: You May Be Dealing With Both at Once

Many California taxpayers face dual collections — FTB and IRS — at the same time.


For example:


  • IRS is garnishing wages


  • FTB is levying your bank account



  • EDD is demanding back payroll taxes


You need a coordinated resolution plan that handles federal and state agencies together.


How to Stop FTB and IRS Collections

  1. Know which agency is acting (read your notices carefully)

  2. Contact the agency and request a hold

  3. Submit financials (Form 433-A/B for IRS, personal statement for FTB)

  4. Negotiate resolution (OIC, IA, hardship, or appeal)

  5. Document everything and follow up often

Why You Need a California-Based Tax Professional

The IRS is difficult. The FTB is worse — especially if you don’t respond in time.


At Boulanger CPA, we help California taxpayers:


  • Stop levies and garnishments

  • Coordinate IRS and FTB resolutions

  • File penalty abatement and OIC requests

  • Protect their income and business assets

📞 Call 657-218-5700 or Schedule a Consultation



Frequently Asked Questions

Who is more aggressive, the IRS or the FTB?

In California, the FTB is often more aggressive and faster than the IRS in issuing levies and garnishments.

Can both the IRS and FTB collect from me at the same time?

Yes. Many California taxpayers face simultaneous collection actions from both the IRS and FTB.

Does the FTB offer an Offer in Compromise?

Yes, but only in limited cases. Typically, the taxpayer must be insolvent and no longer operating a business.

Can I stop collections while applying for resolution?

Yes. You can request a temporary hold while submitting a payment plan, OIC, or hardship request.

Will the IRS notify the FTB of my tax issues?

Yes. The IRS and FTB share information, and one agency’s activity can often trigger action from the other.

📣 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.

Marc The CPA's Tax Blog

A man is sitting at a desk holding a wage garnishment notice.
By Marc Boulanger July 14, 2025
Owe taxes to both the IRS and California FTB? Learn whether both agencies can garnish your wages at the same time — and how to stop overlapping garnishments.
A stack of papers and an envelope with the words
By Marc Boulanger July 14, 2025
Ignoring IRS, FTB, or CDTFA tax notices in California lead to levies, garnishments, and criminal enforcement. Learn consequences and respond before it’s too late.
A screenshot of a website that says irs vs ftb vs cdtfa who comes after you first in california.
By Marc Boulanger July 11, 2025
Behind on taxes in California? Learn which agency pursues collections first — the IRS, FTB, or CDTFA — and how to prioritize resolution when multiple agencies are involved.
A man in a suit and tie is holding a sign that says notice of tax levy
By Marc Boulanger July 11, 2025
Owe taxes to the IRS, FTB, or EDD? Learn how to stop simultaneous levies from multiple agencies and protect your bank account, paycheck, and business assets.
A laptop computer is sitting on a desk next to a stack of papers and a calculator.
By Marc Boulanger July 10, 2025
Owe back taxes to both the IRS and California’s FTB? Learn whether you can settle both debts with an Offer in Compromise — and how to handle dual collections.
A laptop with the words ftb penalties waived on the screen
By Marc Boulanger July 9, 2025
Owe penalties to the Franchise Tax Board? Learn how California taxpayers can request penalty abatement from the FTB, when it’s granted, and how a CPA can help.
A man in a suit and tie is sitting at a desk holding a piece of paper.
By Marc Boulanger July 9, 2025
Has the California FTB frozen your bank account? Learn how FTB bank levies work, how to stop them, and what steps to take to protect your money and resolve your tax debt.
By Marc Boulanger July 8, 2025
Don’t agree with your CDTFA audit results? Learn how to dispute audit findings, correct errors, and protect your California business from unfair tax assessments.
A man is sitting at a desk holding a piece of paper that says levy released
By Marc Boulanger July 8, 2025
Facing an EDD bank levy or wage garnishment in California? Learn how to stop EDD collections, request a release, and protect your income with expert CPA help.
A man is sitting at a desk looking at a computer screen.
By Marc Boulanger July 7, 2025
Owe payroll taxes to California’s EDD? Learn if you can settle your tax debt, qualify for an Offer in Compromise, and avoid penalties or criminal charges.
More Posts