The California Franchise Tax Board (FTB) is more aggressive than the IRS — with broader levy powers, longer collection periods, and no statute of limitations on filed tax liabilities. Dream Financial Management resolves CA state tax debt since 1994.
| Feature | IRS | CA FTB |
|---|---|---|
| Collection Statute | 10 years from assessment | No expiration on filed returns |
| Wage Garnishment | Exempt amount based on filing status | 25% of disposable earnings — no exempt minimum |
| Bank Levy | 21-day hold before seizure | 10-day hold — faster seizure |
| Offer in Compromise | Available, ~40% acceptance | Available but stricter — lower acceptance rate |
| Installment Agreement | Up to 6 years streamlined | Up to 5 years maximum |
Unlike the IRS's 10-year collection statute, the California FTB can collect on tax liabilities from filed returns indefinitely. A tax debt from 2002 can still be collected today. This makes FTB resolution urgent — the debt never goes away on its own.
The FTB offers: Installment Agreements (up to 5 years), Offer in Compromise (stricter than IRS OIC), Currently Not Collectible status, and penalty abatement. The FTB is generally less flexible than the IRS — professional negotiation makes a significant difference in outcomes.
The FTB is aggressive and persistent. CA tax debt does not expire. Dream Financial Management resolves California state tax issues. Since 1994.
Resolve CA Tax Debt — Free