If you do not pay your income tax debt in full at the time it is due and payable, the unpaid amount could be made up by intercepting funds that you promise the federal government, other states, or other California authorities. If you do not believe you owe this debt, you or your tax agent must receive the California Franchise Tax Board within 30 days of first receiving a return information notice or tax return to avoid possible interception. Find out how we protect your rights and assets. The FTB also has a unique function that is not available under IRS rate agreements. The function is called “Skip the month”. If for any reason you are unable to make your instalment payment under your agreement, you can call the FTB and inform them before the due date of your payment. The FTB allows you to skip a month without declaring your payment agreement in default. The number is (916) 845-0494. California taxpayers have several options for paying off outstanding tax debts.
If you are unable to pay your public taxes, you should work with the Franchise Tax Board (FTB) to agree on a California tax payment plan, to request an extension or an offer to pay your tax debt. A qualified tax advisor can help you explore the options available to resolve your California tax issues. If you do not make arrangements to reimburse your taxes, the state will issue a pledge. This public registration, which lasts 10 years, gives the state right to your property. If you do not take action as soon as a right of pledge has been filed, your salaries, accounts, real estate and vehicles may be seized to satisfy your tax debt. If approved, it will cost you $50 to set up a instalment payment contract (added to your credit). Can`t pay your tax bill and want a payment plan? You can request a payment contract in instalments. Like the IRS, the FTB uses your appropriate collection potential to determine the lowest offer they will accept.
This amount must be the maximum amount that the CRA can expect from you before the expiry of the limitation period for your government tax debt. An application fee of $34 will be added to your tax credit if you apply for a payment agreement in instalments. If your application is accepted, you will receive a notification with your monthly date and amount of default. If you do not make this first payment within 30 days, your instalment payment contract will be terminated and you will have to face subsequent recoveries by the FTB. Companies liable to FTB can also enter into a instalment payment agreement over the phone, but this is more complicated and more documents are needed. For more information, visit the ftB website in www.ftb.ca.gov/online/installments_bus.shtml. If you are unable to resolve your state tax debt issues, you can turn to the Taxpayers` Rights Lawyer`s Office. This agency conducts an independent review of your tax situation, makes recommendations, and answers any questions you have about California income tax. To get started, call 1-800-883-5910 or write to Executive Liaison Section MS A381, Franchise Tax Board, P.O. Box 157, Rancho Cordova, CA 95741-0157. If you pay your taxes in instalments, all future public and federal tax refunds will be applied to your credit until it is fully refunded. .