Past-Due Liabilities

If you have past-due liabilities, this information may help you with the collection process. Also visit Financial Hardship and Offers in Compromise.

California Department of Tax and Fee Administration

If you receive a Demand for Tax Payment, it means you have a tax or fee liability that is due and payable by the date shown. For information on the collection process, view Tax Collection Procedures (PDF) (Publication 54).

Employment Development Department

The Employment Development Department (EDD) sends out Employer Account Statements (DE 2176) when you owe past due amounts or do not submit quarterly or annual reports when due. The DE 2176 explains the reason for the statement and requests payment in full or the returns. If you believe the DE 2176 is inaccurate, call the EDD immediately at the telephone number on the statement. If you are unable to pay in full, review Information Sheet: Installment Agreement (PDF) (DE 631P) for information on liquidating debts due over a period of time.

Employers who do not file and pay liabilities on time are subject to the filing of a state tax lien (PDF). Offers in Compromise (PDF) allow qualified tax debtors to eliminate a payroll tax liability at less that full value.

Franchise Tax Board

If you receive a notice from the Franchise Tax Board (FTB) requesting a return or payment for taxes, contact FTB immediately. Even if you can’t pay your taxes in full, file your return to avoid further penalties. The FTB may be able to work out a payment arrangement plan with you

If you don’t understand the notice you received, visit Notice of Tax Return Change.

Internal Revenue Service

If you do not pay in full when you file, you will receive a bill. This bill begins the collection process.

The first bill you receive will explain the reason for your balance due and demand payment in full. It will include the tax due plus penalties and interest that are added to your unpaid balance from the date your taxes were due. If you believe the bill is inaccurate, write to the IRS office that sent you the bill or visit your nearest office.

For more information about the collection process, visit Topic 200 - Collection.

Liens, Levies, and Offsets

Liens, levies, and offsets are three ways to collect unpaid taxes. A lien gives public notice to your creditors that someone has a claim against your property. When the debt is paid, the lien is released. A levy gives the creditor the authority to actually take and sell your property to satisfy the debt. An offset occurs when the taxes that you owe are deducted (offset) from a refund due by another government agency.

California Department of Tax and Fee Administration

We will mail you a preliminary notice at least 30 days before filing a lien with the county recorder.

If you do not pay your liabilities or make arrangements to settle your tax or fee debt, California Department of Tax and Fee Administration (CDTFA) may levy (seize) any type of real or personal property that you own or have an interest in.

The CDTFA will usually only levy property after sending you a Demand for Payment letter and you have neglected or refused to pay the tax or fee. For more information on liens and levies, view Tax Collection Procedures (PDF) (Publication 54).

Employment Development Department

The EDD may record a state tax lien against employers who do not file required returns and pay liabilities on time. For more information, view Information Sheet: State Tax Lien (DE 631TL) (PDF).

Franchise Tax Board

FTB may record a lien against taxpayers when their tax debts are overdue. FTB notifies taxpayers 30 days before recording the lien. If the taxpayer does not respond, FTB records a lien with the county recorder. If you have a lien or levy that was issued by FTB, call 1-800-852-5711 to learn more or refer to Financial Hardship.

Internal Revenue Service

Visit Topic 201 - The Collection Process for more information.