As a California resident, one of the challenges you will need to deal with in terms of taxes comes from Franchise Tax Board, or FTB. The FTB has the ability to lien, levy and even garnish bank accounts and money for unpaid taxes. If you find yourself in that scenario, then having the professional assistance of a CPA could be a good idea. They can help you see where the problems stem from, and how you can best create a solution that is both acceptable to the FTB and affordable to yourself. This gives everyone the chance of a fair resolution.
What is the FTB?
The FTB is responsible for delivering two of the major tax programs in California; Personal Income Tax, and Corporation Tax. They also operate major non-tax elements such as child support, vehicle registrations and various other minor debt collections. In short, getting a letter from the FTB is rarely a positive!
If you want to get the problem dealt with right away, then you need to have access to the right kind of solutions. Your best bet at correcting an FTB levy comes from the help of an accountant or CPA. They can help you see where you have gone wrong, what needs to be adjusted, and the least painful way of handling that.
Trust us when we say that finding a resolution is much more preferable to handling the challenge of an FTB levy. These can be harrowingly expensive and can force you into a corner financially.
The Next Steps
When you are hit with any FTB issues, the bank that has your money is required by law to give them access to it and hold it in trust. This means that you have a small window to get professional help from a CPA and to come up with a fair and honest counter-attack to the claims. Once you get in touch with an accountant they can take a look at your details and the best way to stop the money transfer from going through.
Not only is this going to greatly speed up your chances of finding a successful solution for your financial situation, but it’s also very much likely to get the ball rolling on finding an alternative, more amicable, solution.
Make sure that all amounts are fully verified and that penalties and other calculations are taken into account here.
The main plain should be to try and arrange a payment structure with the FTB, if you cannot pay immediately. So long as you fall under the $10,000 threshold and you have a payment plan that will see it paid back in 36 months or less, you should be accepted.
Payments tend to be a minimum of $25/month but, with the help of an accountant, this should be enough. You will also need to agree to pay all future tax balances and file all returns on time in the future.
For more help or solutions, be sure to hire an accountant immediately.
