If you’ve ever dealt with the IRS, you probably thought you’d seen the worst of tax collections. But for California residents and businesses, there’s a more aggressive collector in town: the Franchise Tax Board (FTB).<\/p>\n\n\n\n
And they just got a major upgrade.<\/p>\n\n\n\n
The Silent Predator
Unlike the IRS’s somewhat predictable collection process, the FTB operates more like a stealth predator. In my 10 years helping taxpayers resolve their tax issues, I’ve never seen a collection agency move as swiftly and decisively as the FTB.<\/p>\n\n\n\n
Here’s a sobering comparison:<\/p>\n\n\n\n
The IRS Collection Process:
\u2022 Multiple notices over several months
\u2022 Clear appeal rights and procedures
\u2022 Various payment arrangements available
\u2022 Collection Statute Expiration Date (10 years)
\u2022 Willingness to correct errors
\u2022 Federal guidelines protecting taxpayer rights<\/p>\n\n\n\n
The FTB’s Approach:
\u2022 Minimal notice requirements
\u2022 10-day response window after levy
\u2022 Nearly unlimited collection timeframe
\u2022 Limited payment options
\u2022 Minimal administrative remedies
\u2022 Aggressive collection tactics<\/p>\n\n\n\n
The 2024 System Upgrade
This year, the FTB implemented a new automated collection system. The results have been staggering. In San Diego alone last month:
\u2022 312 bank accounts were levied
\u2022 89 business licenses were suspended
\u2022 437 wage garnishments were implemented<\/p>\n\n\n\n
Most concerning? The majority of these actions happened without any recent contact with the taxpayers.<\/p>\n\n\n\n
Real-World Impact
Let me share a recent case that illustrates the FTB’s new capabilities:<\/p>\n\n\n\n
A small business owner in Sacramento thought she had handled her 2019 tax issue because she never heard back from the FTB. On a Tuesday morning, she discovered her business account drained – $47,000 gone overnight. Her business license was suspended the same week.<\/p>\n\n\n\n
By the time she reached out to me, she had just 6 days left to respond before the levy became permanent.<\/p>\n\n\n\n
Why The FTB Is More Dangerous Than Ever<\/p>\n\n\n\n
Warning Signs You’re at Risk
\u2022 Haven’t filed California returns in recent years
\u2022 Received FTB notices but haven’t responded
\u2022 Made payment arrangements but missed payments
\u2022 Moved out of state with outstanding California tax debt
\u2022 Have unfiled returns from years worked in California
\u2022 Received any FTB correspondence in the last 6 months<\/p>\n\n\n\n
Protecting Yourself
The key to dealing with the FTB is proactive action. Once they strike, you have very limited time and options. Here are the critical first steps:<\/p>\n\n\n\n
The Bottom Line
The FTB’s new collection system has transformed them from a formidable state agency into an extremely efficient collection machine. The days of flying under the radar or hoping for the best are over.<\/p>\n\n\n\n
If you have outstanding California tax issues, the time to act is now, before the FTB acts first.<\/p>\n\n\n\n
Until Next Time,
Andrew Samaniego, EA<\/p>\n","protected":false},"excerpt":{"rendered":"
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