How can I find out why the franchise tax board suddenly levied my personal checking account and if it had been done in error?
4 attorney answers
You have at least 10 days as I recall to reverse the levy but you will need to show that the levy has created a hardship on you and your family. If you can prove to the FTB that the levy has created a hardship, the levy will be released and the money returned to your bank account, but if you miss the deadline, it will be turned over by the bank to the FTB and refunds can take months and even years. Levies are handled by the FTB Lien unit at 916-845-4350. So, you must call them and stay on the line until they respond or schedule a call back time so the FTB can call you back without losing your place in line. If all else fails, contact the FTB Taxpayer Advocate at 800-883-5910. If any of my phone numbers listed are old, go to www.ftb.ca.gov to find the new phone numbers. Good luck!
The FTB may have been in error. I know—it happened to me. There’s an advocate who can sort this out. https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/february-2018/ask-the-advocate.html
This is general advice. You are anonymous. If you PM me I won’t know what it’s about.
The obligation owed (or not owed, as the case may be) to the FTB needs to be sorted out. If you have a tax preparer that you work with, I recommend that be one of your next phone calls. If you do not have a tax professional you've been working with, it might be time to find a good one. If you have other debts and/or the solution to this issue is not easy and obvious, it is worth while for you to speak with a Bankruptcy Attorney. So long as the levy was with the last 90 days, you might be able to recover some/most/all of those levied funds through bankruptcy. I suggest that you (at least) find out if the funds are recoverable.
The answer provided herein should not be construed as legal advice, nor does this statement imply any kind of attorney-client relationship. You should contact an attorney near you for legal advice.
May I suggest going to the bank and getting a hard copy of the levy. Additionally, check with the County Recorders Office to obtain a copy of the lien that has probably been filed.