February 23, 2021 - Sacramento — The Franchise Tax Board (FTB) on Monday announced a suspension of its income tax refund offset program until July 31, 2021.
“The ongoing public health emergency continues to have a severe economic impact on many Californians. We hope this suspension will offer additional relief for taxpayers,” said State Controller and FTB Chair Betty T. Yee.
FTB has temporarily suspended the collection activities of the Interagency Intercept Collection (IIC) Program to provide relief to California 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.
Resources are available for taxpayers experiencing a financial hardship. Taxpayers can apply for a payment installment plan if they cannot pay their state taxes in full; this includes court-ordered debts. Taxpayers can apply for a payment plan online, by phone, or by mail.
In addition, if a taxpayer receives a wage garnishment, bank levy, or tax lien, FTB will work with the taxpayer to assist them. In addition to payment plans, this assistance 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.
Walk-in service is available at five regional FTB field offices to assist all customers by appointment only. Customers can request an appointment by contacting the field offices by telephone or email. For additional assistance, contact FTB team members by phone or live chat ,or visit our COVID-19 frequently asked questions page.
FTB administers two of California’s major tax programs: Personal Income Tax and the Corporation Tax. FTB also administers other non tax programs and delinquent debt collection functions, including delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles, and court–ordered debt. Annually, FTB’s tax programs collect more than 70 percent of the state’s general fund. For more information on other taxes and fees in California, visit: taxes.ca.gov.