FTB is not the IRS — and is often faster
California's Franchise Tax Board runs its own assessment and collection machinery, with shorter fuses in places: bank levies (Orders to Withhold) and wage garnishments can arrive with less warning than their federal cousins. An IRS-style wait-and-see approach gets people hurt with the FTB.
Common FTB surprises
Demand penalties for not responding to a Demand for Tax Return; assessments built from federal data or CA-source income when no return was filed; the $800 minimum franchise tax snowballing against inactive LLCs and corporations that were never properly dissolved; and 20-year collection statutes — far longer than the IRS's ten.
Your options with the state
The FTB offers installment agreements, hardship deferrals, penalty abatement in defined circumstances (including California's one-time abatement), Offers in Compromise, and lien and levy releases tied to resolutions. Which applies is a facts question — bring the notices and we'll map it.
What we do
Free, confidential review of your FTB mail — and if both the IRS and FTB are involved, we coordinate the two so one resolution doesn't sabotage the other. Central Valley based; hablamos español.
Common questions
The FTB levied my bank account with no warning. Can they?
The FTB sends notices to your last known address before collecting — 'no warning' usually means mail went somewhere old. Either way, act immediately: releases are time-sensitive, and updating your address stops the next surprise.
I closed my LLC years ago — why does the FTB say I owe $800 a year?
An LLC or corporation keeps owing the annual minimum tax until it's formally dissolved with the state. There are paths to wind this down; ignoring the letters only grows the pile.
Do I have to resolve the IRS first or the FTB first?
Neither, automatically — but the sequencing matters because each agency looks at your ability to pay after the other. Coordinating them is a real part of the strategy.
This page is general information, not tax advice for your specific situation — that’s what the free review is for. We never promise specific outcomes; options depend on your facts.