California taxpayers can take advantage of several ways to get in touch with the state Franchise Tax Board, including a direct call to the California state tax levy phone number: 800-689-4776. This is especially important if you have unpaid state back taxes and have been issued a levy, which means that your property can be seized if you do not make arrangements to pay your balance.
If you do not pay your state taxes, the Franchise Tax Board (FTB) can levy your personal property. A levy is sometimes called an Order to Withhold. This means that the state will take funds from your bank accounts, garnish your paychecks, and take ownership of real estate and other property to satisfy your back taxes. If you receive notice of a California tax levy, you must take action immediately to protect your property and assets.
The legal authority to seize property to repay an outstanding state tax balance is granted by California Revenue and Taxation Code Sections 18817 and 18670. Your state tax levy form will include a phone number you can call to speak with an FTB representative.
When your bank account is levied, the bank places a 10-day hold on your funds. After this waiting period, the money is transferred to the FTB. You may be able to get an extension beyond 10 days if you are actively working with an FTB representative to resolve your back taxes.
If you think that your bank account was levied as the result of an error, call the phone number listed on your levy notice right away. You’ll need to provide the fax number for your bank. The FTB will delay the levy until the issue is resolved. If the error is confirmed, you can write to the FTB within 90 days to request reimbursement for fees and charges that occurred as a result of the levy.
It is very difficult to remove a bank levy, but you can request that the FTB do so if you can prove that the levy has caused financial hardship, or that the levied funds belonged to another person or are otherwise exempt from levy.
To prove financial hardship, you must provide information to the FTB about your income, assets, debts, and monthly expenses. If you are elderly, you may receive special consideration from the state. Even if the FTB releases your levy for reason of hardship, collections will begin again after 12 months unless your financial situation remains unchanged.
If the funds that were levied belonged to someone else, you must provide proof that a family member made a deposit into your bank or that you were holding funds for someone else. Your levy will not be released unless you can provide documentation, not just an explanation.
Some funds are exempt from levy and can be released if you or an attorney acting on your behalf contacts the FTB. This category typically includes veteran benefits, Social Security income, and public assistance.
Once you make arrangements to repay your back taxes, the levy will be lifted. If you cannot afford to repay your debt, however, you do have other options. These include:
Taxpayers who want help from the FTB have several options:
If you need help resolving issues with federal or state back taxes, contact Solvable today. We pair our clients with vetted back tax assistance agencies who help taxpayers like you every day. Get on the road to a debt-free future.