How Often Can The Franchise Tax Board Levy Your Bank Account?

The California Franchise Tax Board (FTB) has the authority to levy your bank account as often as necessary to collect unpaid taxes, interest, penalties, and fees. Once a bank levy is issued, the FTB can continue to levy your account until the debt is fully paid or you arrange a satisfactory payment plan.

Here are the important points regarding the FTB’s levy process:

1. Repeated Levies: The FTB can issue multiple levies if the initial levy does not fully cover the amount owed. They may continue to do this periodically until the debt is satisfied.
2. Levy Notice: Before a levy, the FTB typically sends a notice demanding payment. If you do not respond or make arrangements, they will proceed with the order to withhold for taxes.
3. Bank Levy Execution: Once the FTB issues a bank levy, your bank is required to hold the funds for 10 days before remitting them to the FTB. During this period, you can attempt to resolve the issue with the FTB or prove that the levy is causing undue hardship.
4. Payment Plans: To avoid repeated levies, you can contact the FTB to negotiate a payment plan or offer in compromise if you are unable to pay the full amount immediately.
5. Other Assets: Besides bank accounts, the FTB can also levy wages, personal property, and other assets.
6. 20-Year Statute of Limitations: The FTB can collect on unpaid tax liabilities for up to 20 years after the date the latest tax liability becomes due and payable. This means that it’s very difficult to wait for the statute of limitations to expire to avoid paying the FTB.

The FTB is notoriously aggressive. If your bank account has been levied by the FTB for back taxes you have a very short period of time to act. Call the Law Office of Jin Kim at (916) 299-9913 for a free consultation and explore your options to release the levy and resolve your tax debt.

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Jin Kim

Tax Attorney at Law Office of Jin Kim

Jin Kim is a tax attorney in Sacramento, California.  She helps individuals and businesses resolve back taxes.

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