To assure you are aware of CA State FTB tax collection actions during COVID-19 pandemic, providing the latest notice from the FTB below. For individuals and entities with Installment Agreements, required to "request to skip payments" either online https://webapp.ftb.ca.gov/EIA/checkstatus or call 800-689-4776. Suggest calling as online requires SSN and original Confirmation Number to access and concurrently contact your bank to suspend auto debit from April 2020 to July 2020.
In a Q&A format, CA State FTB details the various collection activities policy and procedures. If your personal or business assets are subject to collection activities, suggest reading and if you have questions or concerns, contact myself for assistance.
NOTE: Internal Revenue Service (IRS), in general, suspended all collections activities through July 15, 2020. No action is required by the taxpayer.
Have you delayed any collection activities?
Similar to the IRS, we implemented a temporary suspension on a number of collection activities within our personal income tax, business entity tax, and nontax debt (court-ordered debt and vehicle registration collection) programs through July 15, 2020:
Wage attachments, bank levies, liens, and field agent calls/visits are suspended
Suspension of business entities with the Secretary of State (SOS) are delayed
The Top 500 Delinquent Taxpayers List is delayed
An extension has been granted to taxpayers whose financial hardship was scheduled to expire
Will you stop offsetting income tax refunds?
The offset program collects money from tax refunds or other government payments owed by taxpayers to FTB and other government agencies.
Most new and existing offset requests are suspended, including:
Offsets of California Income Tax Refunds to state and local agencies.
Offsets of Lottery prizes and unclaimed property
Offsets of Federal Treasury (IRS) refunds (including the Federal Economic Impact Payment Checks)
Will you suspend monthly payments for payment plans (installment agreements)?
Existing payment plans
If you currently can’t comply with the terms of an existing installment agreement (payment plan), you may request to skip your payments. You can request to skip payments online or by phone at (800) 689-4776.
For court-ordered debt installment agreements, you can request to skip payments online by logging into your court-ordered debt account or by phone at (916) 845-4064.
If you’re able to meet your monthly payments, we encourage you to still pay because interest continues to accrue on all unpaid balances. If you’re not able to make your monthly payments, we will not default your installment agreement during this extension period through July 15, 2020.
New payment plans
You can apply for a payment plan if you’re unable to fully pay your state taxes (as usual). If you have court-ordered debt, you can also apply for a payment plan. You can apply online, by phone, or mail. For more information:
Does the July 15 extension apply to Offers in Compromise (OIC)?
We will not issue any denials on OICs prior to July 15, 2020. We will also allow taxpayers until July 15 to provide requested information to support a pending OIC. Any OIC payment currently due will be extended until July 15.
Can I get my tax lien released?
You can call the FTB Lien Program at (916) 845-4350 to review their options. We will evaluate each request and work with you to request any needed documentation to determine whether a lien release is appropriate.
If appropriate, we will submit the lien release to the appropriate county or counties. This applies to taxpayers impacted by COVID -19 that are seeking relief and have liens filed and are trying to secure financing to cover payroll, pay off their debts, etc.
Frank Mario Castellon, CPA, CGMA, MST
Castellon Professional Services
71 Stevenson Street, Suite 400, San Francisco, CA 94105
2615 El Camino Real, Santa Clara, CA 95051
6265 Highway 9, Felton, 95018