Franchise Tax Board suspends certain debt collection activities

The Franchise Tax Board Monday announced a suspension of its income tax refund offset program until July 31.

“The ongoing public health emergency continues to have a severe economic impact on many Californians,” said State Controller and FTB Chair Betty T. Yee. “We hope this suspension will offer additional relief for taxpayers.”

FTB has temporarily suspended the collection activities of the Interagency Intercept Collection Program to provide relief to California taxpayers in keeping with Gov. Gavin Newsom’s March 12 executive order. This means state tax refunds will not be reduced to offset taxpayer debts for parking citations, tolls, and various fines. Debts for child support are the exception and will continue to be collected.

Resources are available for taxpayers experiencing a financial hardship. Taxpayers can apply for a payment installment plan if they cannot pay their state taxes in full, and this includes court-ordered debts. Taxpayers can apply for a payment plan online, by phone, or by mail.

In addition, if a taxpayer receives a wage garnishment, bank levy, or tax lien, FTB will work with the taxpayer to assist them. In addition to payment plans, this assistance may include modifying or releasing a garnishment or levy, placing a hold on the collection account, or accepting an offer in compromise.

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