A California FTB levy notice is a legal order telling your bank, employer, or anyone else holding your money to turn those funds over to the Franchise Tax Board to cover unpaid state tax. If your bank account was hit, you usually have about ten business days before the money leaves, so call the FTB at the number printed on the notice right away, confirm the balance, and pick a resolution path. One quick note on terminology: some people call this “Form 342,” but the FTB’s form catalog doesn’t list that number. The agency’s actual withholding orders carry designations like FTB 2900 (one-time order to withhold) and FTB 2910 (continuous order to withhold). The steps below apply whatever number is printed on your notice.
What the Notice Actually Is
A levy is not a request and it is not a bill. It is an order directed at a third party who holds your money, requiring them to send it to the state. The notice identifies you by name, address, and Social Security number, states the total owed (tax, interest, and penalties combined), and lists the tax years involved.
There are two basic flavors. A one-time order, like FTB 2900, tells the holder to freeze and send whatever funds are available up to the amount owed on the day the notice arrives. A continuous order, FTB 2910, stays alive and captures ongoing payments such as wages until the debt is paid, the FTB withdraws the order, or one year passes.1California Legislative Information. California Code Revenue and Taxation Code RTC 18671
For a bank levy, the bank is required to hold the money at least 10 business days after receiving the notice before sending it to the FTB.2California Legislative Information. California Code RTC 18670 That window is your working time to act.
How Much the FTB Can Take
The amount depends on what the notice targets and whether you are an individual or a business.
A one-time bank levy can clean out the account up to the full balance owed.3Franchise Tax Board. Other Levies For a continuous order attached to ongoing payments like wages, the caps come from Revenue and Taxation Code Section 18671:
- Individuals: up to 25 percent of each payment due during the period the order is in effect.
- Business entities: up to 100 percent of each payment due during the period the order is in effect.
The withholding stops once the total on the notice is collected.1California Legislative Information. California Code Revenue and Taxation Code RTC 18671
If you were counting on federal wage-garnishment protection, don’t. The Consumer Credit Protection Act’s familiar 25 percent cap for ordinary debts explicitly does not apply to state and federal tax collection.4U.S. Department of Labor. Fact Sheet #30: Wage Garnishment Protections of the Consumer Credit Protection Act (CCPA)
What to Do in the First Few Days
Call the FTB collections unit using the number on the notice. The general collections line is 800-689-4776 (or 916-845-4470 from outside the United States).5Franchise Tax Board. FTB 1140 Personal Income Tax Collections Information If a bank account was levied, call before the 10-business-day hold expires. Once the funds leave the bank, getting them back is much harder.
On the call, ask the agent to confirm the exact balance and verify that any recent payments you’ve made are reflected. If the number is wrong, or if the levy was issued to the wrong person, the FTB can investigate and release a levy sent in error.6Franchise Tax Board. Help With Withholding Orders You can also message the agency through MyFTB, which gives you a written record of the conversation.
Documents to Pull Together
Before you ask for a hardship adjustment, a payment plan, or a settlement, you need paperwork that shows what you owe, what you’ve paid, and what you can afford. Gather these:
- Bank statements covering the levy date, showing the available balance and the source of each deposit.
- Recent pay stubs showing gross and net earnings.
- Proof of any payments already made to the FTB: cleared checks, electronic transfer confirmations, or receipts.
- Monthly expense records: rent or mortgage, utilities, insurance, medical bills, and other recurring obligations.
Make sure the name, Social Security number, and account numbers on your documents match the levy notice. Mismatches delay the review.
Your Options for Resolving the Debt
Pay the Full Balance
The fastest release is a full payoff. You can pay through MyFTB, by phone, or by mail. Once payment clears, the FTB tells the third party to stop withholding.
Request an Installment Agreement
If you can’t pay in a lump sum, ask for a monthly payment plan. Individuals apply with FTB Form 3567 or by calling 800-689-4776. If you already have an active levy, bank order, or wage garnishment, you cannot apply online — you have to call. The FTB may require a financial statement (Form 3561C for individuals, Form 9310X for businesses) before approval, and processing can take up to 90 days.7Franchise Tax Board. Payment Plans Installment Agreement
Claim Financial Hardship
If the levy leaves you unable to cover basic living expenses, call the number on the notice and explain. The FTB can reduce the withholding or release the levy based on your finances, and it confirms any reduction with a notice (FTB 4720B).8Franchise Tax Board. Notices and Letters Have your expense and income documentation ready; the agency will not take your word for it.
Submit an Offer in Compromise
An offer in compromise lets you settle for less than the full balance if you can show you cannot pay it all and are unlikely to be able to. Individuals use FTB Form 4905PIT, available as a PDF or through MyFTB (Services menu, “Submit an Offer in Compromise”).9Franchise Tax Board. Make an Offer on Your Tax Debt (Offer in Compromise) The FTB weighs your ability to pay, the value of your assets, your current and future income, and whether the offer serves the state’s interest. The review is thorough, and low offers get rejected.
Funds That May Be Exempt
Not every dollar in your account is reachable. If your only income is Social Security, call the FTB at the number on the notice; the agency will review the account and decide whether to adjust or release the levy.6Franchise Tax Board. Help With Withholding Orders
Under California Code of Civil Procedure Section 704.070, wages that were already subject to a prior earnings withholding order before being deposited into your bank account are fully exempt from a later bank levy. The exemption covers paid earnings deposited within the 30 days before the levy date.10California Legislative Information. California Code of Civil Procedure CCP 704070
If you believe funds in your account are exempt, you have to trace them. Pull your bank statements and match deposits to pay stubs, Social Security statements, or disability records. The FTB and the bank will not do that work for you.
How a Levy Gets Released
The FTB releases a levy when the debt is resolved, when the agency determines the levy was issued in error, or when you enter an approved payment arrangement. If the levy was a mistake, you can request reimbursement for bank fees, but the request must be in writing and submitted within 90 days of the notice date. The FTB commits to responding to written requests within 30 days.6Franchise Tax Board. Help With Withholding Orders
The mailing address for general collections correspondence is:
Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-00405Franchise Tax Board. FTB 1140 Personal Income Tax Collections Information
Once a release is issued, the FTB notifies the bank or employer to stop withholding. A continuous order also expires on its own one year after the third party received it, though the FTB can issue a new order at that point if a balance remains.1California Legislative Information. California Code Revenue and Taxation Code RTC 18671