What to Do If You Owe Back Taxes to the FTB (California Guide)

Introduction: You’re Not Alone — and You Have Options

If you owe back taxes to the California Franchise Tax Board (FTB), you’re probably feeling overwhelmed, frustrated, and unsure what to do next.

Maybe you fell behind on payments. Maybe you missed a filing deadline or didn’t even know you owed the state. Whatever the reason, the FTB doesn’t wait long to begin collecting — and their collection tactics are among the most aggressive in the country.

But here’s the good news:

You can get help resolving FTB back taxes in Orange County with the right support, and you may be able to reduce penalties, avoid enforced collections, and settle for less than you owe.

This guide explains your options and how we help Orange County taxpayers move forward with confidence.

Step 1: Understand What You Owe — and Why

Before resolving your tax issue, you need to understand:

• What years are delinquent
• Whether the balance is from a missing return or unpaid taxes
• How much of your balance is penalties and interest
• Whether the FTB has filed a Notice of State Tax Lien or issued a levy

📑 Tip: A CPA can pull your FTB account transcript and verify the full breakdown.

Step 2: Know the Risks of Ignoring Back Taxes

If you ignore a back-tax balance, the FTB may:

• Issue a bank levy (seizing funds from your account)
• Initiate wage garnishment
• File a state tax lien (hurting your credit and blocking financing)
• Seize rental income or business assets
• Intercept state refunds and lottery winnings

That’s why you must take action before the FTB seizes your assets—procrastinating only makes resolution harder.

Step 3: Explore Your  Resolution Options

🔹 Option 1: Pay in Full

If you can afford to, paying the balance up front is the fastest way to resolve your case. You may still be able to request penalty abatement if there’s a valid reason for falling behind.

🔹 Option 2: Set Up an Installment Agreement

A monthly payment plan can stop enforcement actions and give you breathing room.
📌 FTB typically allows up to 60 months (5 years) for repayment, depending on the balance.

Before enrolling, we help clients reduce penalties before setting up a payment plan, whenever possible.

🔹 Option 3: Qualify for a Hardship Deferral

If you’re struggling financially, you may be able to pause collections temporarily through hardship status.

🔹 Option 4: Submit an Offer in Compromise

If you truly can’t afford to pay the full balance, you may be eligible to settle FTB tax debt through the right program — California’s Offer in Compromise. This allows qualifying taxpayers to settle for a reduced amount based on income, assets, and ability to pay.

Step 4: Get Into Compliance

Before the FTB approves any resolution, they’ll want to see:

• All past-due tax returns filed
• Proof that you’re no longer accruing new debt

🧾 Even if you can’t pay, file your missing returns. This helps avoid extra penalties and makes you eligible for relief programs.

Step 5: Work with a California-Based CPA

DIY tax resolution is risky — especially when you’re dealing with state enforcement actions.

At Boulanger CPA and Consulting PC, we help California taxpayers:

• Understand their FTB balance
• File missing returns
• Stop levies and garnishments
• Negotiate payment plans or settlements
• Reduce or remove penalties
• Compare collection strategies between IRS and FTB to choose the best path for your case

And we do it all with flat-fee transparency and a focus on Orange County clients just like you.

Contact Us Today – Don’t Wait for the Next Notice

If you owe back taxes to the FTB, delaying action only makes it worse. But with the right help, you can get back on track quickly and legally.

📞 657-218-5700
🌐 www.orangecounty.cpa
 Serving Irvine, Anaheim, Santa Ana, and all of Orange County

📣 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.