State Tax Payment Plans Available

SACRAMENTO – The Franchise Tax Board (FTB) advised taxpayers dealing with income tax liabilities to contact
FTB for assistance if they are unable to pay on time.
For people experiencing a financial hardship and cannot pay what they owe, FTB specialists can establish payment
plans, grant temporary relief from state tax liens, or, in some cases, delay collection actions. FTB generally approves
installment payment requests if the balance owed is less than $25,000 and can be paid within 60 months.
FTB can generally grant relief from state tax liens within two weeks for financially distressed homeowners trying to sell
or refinance their homes. When a home sells for less than the loan balance, FTB can sometimes remove its tax lien
from the property to allow the homeowner to complete the sale. Tax liens typically must be paid before a real estate
escrow can close. The tax lien remains in effect on any other property the taxpayer currently holds or later acquires.
FTB can help people refinancing or modifying an existing home loan. Homeowners can request that FTB allow the
new or modified loan to have priority over the tax lien. This allows prior home loans to be refinanced or modified
without first having to pay the lien.
More information is available at FTB’s website, ftb.ca.gov, including ways to help taxpayers resolve their accounts
through installment agreement requests. For lien information, look under the "Bills and Notices" tab and then under
the Earnings Withholding and Collections Action section, select: Individuals - Liens.
Taxpayers who cannot resolve their accounts online should call the phone number listed on their billing notices. Those
without Internet service may request an installment agreement payment plan by calling FTB at 800.689.4776, Monday
through Friday, between 8 a.m. and 5 p.m.
Partial Release & Subordination of State Tax Liens
Partial Release
A partial release of lien releases a state tax lien from a specific piece of property. However, the lien remains in effect
and will encumber the transfer of title of any other properties owned or subsequently acquired by the taxpayer.
Reasons to request a partial release of lien include a need to transfer the rights to the property when there are
insufficient funds to fully satisfy the state tax lien or the party with the lien has no rights to title of the property.
Subordination
A subordination of a lien is not the same as a release of lien . The lien remains in effect; however, a subordination of
lien lowers the priority in favor of some other lien against the property. The lien remains in effect and will encumber
the sale of the specified property and any other property owned or acquired by the taxpayer. Typical situations are the
refinance of a loan and there are insufficient funds to fully satisfy the state tax lien or the existing loan is being
modified.
Requesting Partial Release or Subordination
Individual or business entity, call 916.845.4350. If determined that a partial release of lien or subordination
of a lien is warranted, you will be asked to submit the following:
1. Letter of explanation detailing your request.
2. Estimated closing statement.
3. Current preliminary title report that includes the legal description of the property.
4. Current appraisal.
5. Copies of all other liens and encumbrances.
6. Documentation to substantiate all lien payoffs through this escrow.
7. Copy of the new deed of trust (for subordination requests only).
Additional documentation may be needed to complete your request.
Send your request by overnight mail to:
LIEN RESOLUTION UNIT MS A317
FRANCHISE TAX BOARD
SACRAMENTO CA 95827
Phone Numbers:
For Individuals:
800.689.4776 or 916.845.4470
Fax Number: 916.845.4389
For Business Entities:
Entity Type Phone Number
• Corporations 888.635.0494 or 916.845.7033
• Partnerships 888.635.0494 or 916.845.7166
• Limited Liability Companies 888.635.0494 or 916.845.7166