FTB Suspends Tax Refund Offset

On Feb. 22, the Franchise Tax Board suspended its income tax refund offset program until July 31, citing the COVID-19 pandemic.

“We hope this suspension will offer additional relief for taxpayers,” said State Controller and FTB Chair Betty T. Yee.

FTB temporarily suspended collection activities of the Interagency Intercept Collection (IIC) Program to provide relief to taxpayers in keeping with Governor Gavin Newsom’s March 12, 2020, executive order. This means state tax refunds will not be reduced to offset taxpayer debts for parking citations, tolls, and various fines.

Debts for child support are the exception and will continue to be collected.

Taxpayers in financial hardship can apply for a payment installment plan online, by phone, or by mail. This includes court-ordered debts.

If a taxpayer receives a wage garnishment, bank levy, or tax lien, FTB will work with the taxpayer, which may include modifying or releasing a garnishment or levy, placing a hold on the collection account, or accepting an offer in compromise.

For suspended corporations and limited liability companies, FTB offers expedited services to revive the business for those prepared to file and pay the balance now or in the near future.

For help, see www.ftb.ca.gov/help/contact/phone-fax.html