How to Remove an FTB Tax Lien in California (Orange County Guide)
Introduction: What a California Tax Lien Really Means
If you’ve discovered a California Franchise Tax Board (FTB) tax lien filed against you, you’re not alone — and you're not powerless. Tax liens can damage your credit, block real estate transactions, and signal aggressive collection action. Fortunately, there are legal ways to request lien release, withdrawal, or subordination. In this guide, I’ll explain what an FTB tax lien means, how it affects you, and how we help Orange County taxpayers fight back with proven strategies.
If the Franchise Tax Board (FTB) has filed a state tax lien against you, it’s more than just a notice—it’s a public record that can ruin your credit, damage your business reputation, and make it harder to sell or refinance property.
A tax lien doesn’t mean you’re out of options.
In fact, you may be able to
remove or release the lien, especially if you’re taking steps to resolve your tax debt.
This post explains what an FTB tax lien is, how it affects you, and the ways Orange County residents can get it removed legally and efficiently.
What Is an FTB Tax Lien?
A tax lien is a legal claim the state files against your real or personal property when you owe unpaid taxes. The FTB records this lien with your county recorder or the California Secretary of State to protect the state’s interest in your assets.
It applies to:
- Real estate you own
- Business property and equipment
- Bank accounts or personal property in your name
It does not immediately take your property—but it can stop you from selling, borrowing against, or refinancing it.
We help California taxpayers remove or reduce tax liens through proper filings and relief strategies. Schedule a confidential consultation today.
Why Did the FTB File a Lien?
The FTB typically files a lien when:
- You owe over $100 in tax debt
- You've ignored multiple notices
- You failed to make payment arrangements
- The account is assigned to collections
Once filed, the lien is public and may appear on:
- Your credit report
- Background checks
- Title searches
What Problems Can a Tax Lien Cause?
- Ruins your credit score (even if paid later)
- Prevents home sales or refinancing
- Scares away lenders and investors
- Creates red flags for business licensing and bonding
- Embarrassment or reputational harm (it’s public info)
How to Remove an FTB Tax Lien
There are several ways to remove or reduce the impact of an FTB lien:
1. Pay the Tax Debt in Full
The most direct route. Once paid, the FTB will release the lien within 30 days. You can then request a Certificate of Release of Lien to show creditors or lenders.
2. Set Up a Payment Plan
The FTB may delay or avoid filing a lien if you establish an installment agreement early. If the lien is already filed, a payment plan can help demonstrate good faith and lead to eventual release.
3. Submit an Offer in Compromise
If you can’t pay in full, you may qualify to settle your debt. The FTB generally releases the lien after the final payment of an accepted Offer in Compromise.
4. Request a Lien Withdrawal
In limited cases, you can request a withdrawal of the lien even before full payment if:
- It was filed in error
- You’ve entered into a qualifying agreement
- It's in the state’s best interest to remove it (e.g., for refinancing that allows you to pay)
5. Request Subordination
If you're trying to refinance or sell your home, the FTB may agree to subordinate its lien—allowing another lender to take priority—if it helps repay your tax debt.
6. Prove Hardship
If the lien is preventing essential life functions—such as obtaining housing or employment—you may qualify for hardship-based relief or lien removal through the Taxpayer Rights Advocate.
Learn more: FTB Hardship Deferral Guide
What to Do Right Now If You Have a Lien
- Get a transcript or contact the FTB to understand the lien’s origin
- Gather your financials to explore settlement, payment plan, or hardship
- Avoid refinancing or selling property until the lien is addressed
- Work with a licensed CPA who knows how to resolve liens with the state
Why Work With a CPA for FTB Lien Removal?
At Boulanger CPA, we help clients throughout Orange County, including Santa Ana, Irvine, and Anaheim, navigate complex lien issues.
We:
- File release and withdrawal requests
- Handle Offer in Compromise negotiations
- Represent you in lien disputes or protests
- Communicate directly with FTB collections agents
Let’s Remove That Lien – Contact Us Today
Website:
www.orangecounty.cpa
Phone:
657-218-5700
Email:
marc@boulangercpa.com
Frequently Asked Questions
What is an FTB tax lien?
An FTB tax lien is a legal claim filed by the state of California against your assets due to unpaid taxes. It affects your property, credit, and ability to borrow.
Can I remove an FTB lien without paying in full?
Yes, if you qualify for a payment plan, Offer in Compromise, or lien withdrawal under certain circumstances, you may not need to pay the full amount to get the lien released.
Will a lien affect my ability to refinance or sell my home?
Yes. A recorded tax lien must typically be resolved before closing a sale or refinancing, unless the FTB agrees to subordinate the lien.
How long does it take to get an FTB lien released?
If your debt is paid in full or your Offer in Compromise is accepted, the FTB generally releases the lien within 30 days. A CPA can help expedite the process.
Marc The CPA's Tax Blog
