What to Do If You Receive a Levy from the FTB (Orange County Taxpayer Guide)
Introduction: Don’t Ignore That FTB Levy Notice
If you’ve received a levy notice from the California Franchise Tax Board (FTB), it means the state is preparing to seize your assets—usually your bank account or wages. FTB levies are serious and can wipe out funds without much warning.
But here’s the truth:
You still have options.
With the right strategy—and the right help—you can stop the levy, resolve your tax debt, and avoid long-term damage to your finances.
This guide explains exactly what to do if the FTB sends you a levy notice and how Orange County residents can regain control of the situation.
What Is an FTB Levy?
A levy is a legal seizure of your property to satisfy a tax debt. The FTB can issue a levy to:
- Your bank account
- Your wages or salary
- Contract payments
- Rental income
- Third parties who owe you money (such as business customers)
FTB levies are automated, and in many cases, the money is taken before you realize it—especially if you ignored earlier notices.
How Did This Happen?
Before levying your accounts, the FTB typically sends multiple notices:
- Notice of Tax Due
- Demand for Payment
- Notice of Collection Action
- Final Notice Before Levy
If you failed to respond, file, or pay, the FTB assumes you’re unwilling to resolve the debt and moves forward with enforcement.
What to Do Immediately After Receiving a Levy
1. Do Not Ignore the Levy
Ignoring it can lead to multiple levies, wage garnishments, and additional enforcement actions.
2. Contact Your Bank
If it’s a bank levy, funds may be held temporarily before being released to the FTB. You may have a short window to dispute or resolve it.
3. Contact the FTB Collections Unit
Call (800) 689-4776 and explain your situation. You may be able to request a temporary hold on collections if you’re actively pursuing resolution.
4. Get a Tax Professional Involved
A CPA experienced in FTB collections can:
- Request a release of levy
- Negotiate installment agreements
- File for hardship deferral or Offer in Compromise
- Ensure your rights are protected
Orange County residents can schedule a virtual or in-office meeting with Boulanger CPA to take immediate action.
Can You Get an FTB Levy Released?
Yes—if you act fast.
Common ways to release a levy:
- Entering into a payment plan
- Proving financial hardship
- Showing that the levy creates an undue burden (rent, food, medicine)
- Providing proof the levy is in error
The FTB is more likely to release the levy if you demonstrate good faith in resolving the debt.
How to Avoid Future Levies
- File all required tax returns
- Respond to FTB notices promptly
- Set up a payment plan if you can’t pay in full
- Request hardship deferral if you’re in crisis
- Consider an Offer in Compromise if you qualify
Learn more in our related post: How to Qualify for an FTB Hardship Deferral
Case Example: Bank Levy in Orange County
Robert, a contractor in Anaheim, had $11,000 levied from his business account after ignoring FTB notices. We:
- Immediately contacted the FTB
- Submitted a hardship request with supporting financials
- Got the levy released
- Negotiated a $200/month installment agreement
How Boulanger CPA Helps Taxpayers Under Levy
At Boulanger CPA and Consulting PC, we’ve helped Californians—especially in Orange County, including Irvine, Anaheim, and Santa Ana—deal with urgent levy situations. We provide:
- Emergency case triage
- FTB negotiations
- Levy release requests
- Long-term tax resolution plans
Contact Us Today
Website:
www.orangecounty.cpa
Phone:
657-218-5700
Email:
marc@boulangercpa.com
Frequently Asked Questions
What is an FTB levy?
An FTB levy is the legal seizure of your bank account, wages, or other assets by the California Franchise Tax Board to collect unpaid tax debt.
Can I stop a levy after it's been issued?
Yes. You can often release a levy by entering a payment agreement, proving financial hardship, or showing the levy was issued in error.
Will the FTB notify me before issuing a levy?
Yes, the FTB typically sends a series of notices before issuing a levy. If you ignore these, they can proceed without further warning.
Can a CPA get my levy released faster?
Yes. A CPA experienced with FTB collections can often negotiate directly with agents to release a levy or set up an alternative resolution plan.
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