California Final Notice / Intent to Enforce Checklist
A Final Notice Before Levy from the California Franchise Tax Board represents a formal notification that the state intends to collect unpaid taxes, penalties, or interest through enforcement actions. This notice typically arrives after earlier collection attempts have been made.
The California Department of Tax and Fee Administration uses different terminology and issues a Notice of Determination, followed by a Demand for Immediate Payment for sales and use tax matters. Understanding what this notice means and what it requires is essential to protecting your finances and resolving the outstanding balance.
What This Notice Means
The state’s formal declaration begins with this notice, signaling that compulsory collection methods will commence to satisfy the outstanding tax liability. You receive information about the tax year involved, the balance due, and the types of enforcement actions the state may pursue.
Why the State Issues This Notice
California law requires the state to provide notice before taking enforcement action to collect unpaid taxes. Common reasons include unfiled or delinquent tax returns, unpaid tax balances, or unresolved disputes about the amount owed.
The Final Notice Before Levy serves as a required administrative step in the collection process.
Taxpayers receive formal notification that enforcement will begin and gain an opportunity to respond, pay, or arrange an alternative payment method before compulsory collection begins.
Enforcement Actions That May Follow
Collection actions proceed when the Final Notice Before Levy remains unaddressed. State
enforcement tools include the following
- The California Franchise Tax Board may initiate wage garnishment that withholds the
lesser of 20 percent of your disposable earnings or 40 percent of the amount your weekly disposable earnings exceed 48 times the state minimum wage for personal income tax matters.
- Bank levies provide the state with the authority to freeze and seize funds from your bank
account to satisfy the outstanding tax debt.
- The state can file property liens that secure a legal claim against real estate or personal
property you own.
- Your business operations may face restrictions through business license suspensions or
denials of state permits issued by regulatory agencies.
- The state applies tax refund intercepts to redirect your expected refunds toward the
outstanding debt balance.
Accumulated penalties and interest increase the total balance due as the tax debt remains unpaid.
What This Notice Does Not Mean
Receiving a Final Notice Before Levy does not mean the Franchise Tax Board has already garnished your wages, frozen your bank account, or placed a lien on your personal property.
Options remain available to respond, request relief, or arrange payment terms after receiving this notice.
Steps to Take After Receiving This Notice
1. Read and verify the notice: Open the notice immediately and confirm your name, identification number, and the tax year listed. Verify the amount owed, including the breakdown of taxes, penalties, and interest, then identify the issuing agency and any payment deadline printed on the notice.
2. Determine if you agree with the debt amount: Review the amount owed against your records and check whether the tax year listed is accurate. Write down any questions or discrepancies you identify after confirming whether you filed the required returns for those years.
3. Gather all related documents: Collect copies of filed tax returns for the years listed on the notice. Find previous notices from the state, correspondence such as letters or emails, and any records related to the tax liability.
4. Contact the issuing agency: Call the phone number listed on the notice and explain that you received the Final Notice Before Levy from the California Franchise Tax Board.
Representatives can review your account details, clarify items you do not understand, and discuss available options such as payment plans or relief programs. Document the conversation with notes that include the date, time, and representative’s name.
5. Determine your response options: Ask the agency representative about installment agreement options that allow you to pay the balance over time through structured monthly payments. Representatives can explain whether penalty or interest relief is available based on reasonable cause and provide information about hardship options.
Approved payment arrangements may prevent wage garnishment if maintained according to the agreed terms. Request written confirmation of any agreement discussed and clarify the deadline to respond before enforcement begins.
6. Consider an Offer in Compromise: The state may accept an Offer in Compromise if you demonstrate that you lack the income, means, or assets to pay the full tax liability.
This option allows eligible taxpayers to settle their tax debt for less than the full amount owed based on financial circumstances.
7. If you dispute the debt: Request an explanation of how the amount was calculated and ask whether you have the right to appeal the assessment. Agency procedures for filing a protest or appeal include specific deadlines that you must meet. Determine whether filing a dispute or appeal stops enforcement action, and document all information received about the dispute process.
8. If you cannot pay immediately: Inform the representative of your financial situation and ask about payment plan requirements that fit your ability to pay. Documentation needs vary depending on the type of relief requested, so clarify what information you must submit. Ask about the monthly payment amount required, how long the arrangement would extend, and whether collection through paycheck withholding would be stopped if your request is approved.
9. Document everything: Keep records of the date you received the notice and write down the date and time of all phone calls. Recording the name and title of each representative you speak with helps track your communications. Save any written correspondence or agreements you receive and create a timeline of all actions taken.
Common Mistakes to Avoid
Ignoring the notice entirely does not eliminate the tax debt or stop enforcement. Missing the response or payment deadline may allow the Franchise Tax Board to proceed immediately with bank account levies or personal property seizures.
Failing to contact the state often results in misunderstandings and delayed resolution, while sending incomplete information when applying for an installment agreement or relief may result in denial. Making payments without confirming payment details can lead to misapplied funds that do not properly reduce your balance due.
Key Points to Remember
Receiving a Final Notice Before Levy does not guarantee that specific enforcement will happen since you have an opportunity to respond or resolve the outstanding balance before enforcement begins. California procedures allow disputes or appeals through specific legal processes with defined deadlines, not merely typical practices.
The deadline to respond appears printed on the notice itself, and state guidance indicates that wage garnishment is suspended if a payment plan is approved and you make timely payments.
Confirm directly with the agency whether your bank account will be protected from levy action during the review of your payment plan request.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We help with
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
20+ years experience • Same-day reviews available
