Resolving California FTB Bank Levies and Wage Garnishments: How Mike Habib, EA Can Help You

Dealing with a California Franchise Tax Board (FTB) bank levy or wage garnishment can be a stressful and overwhelming experience. These aggressive collection actions can disrupt your financial stability and create significant hardship. If you’re facing a bank levy or wage garnishment from the FTB, it’s crucial to act quickly and seek professional assistance. The Los Angeles-based tax representation firm of Mike Habib, EA, specializes in helping taxpayers resolve FTB levy matters effectively and efficiently. This comprehensive FAQ article will explain everything you need to know about FTB bank levies, wage garnishments, and how Mike Habib, EA, can help you regain control of your financial situation.

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What Is a California FTB Bank Levy?

A bank levy is a legal action taken by the California Franchise Tax Board to seize funds directly from your bank account to satisfy unpaid tax liabilities. The FTB has the authority to issue a bank levy without a court order, making it one of the most aggressive collection tools in its arsenal.

How Does a Bank Levy Work?

1. Notice of Intent to Levy: Before issuing a bank levy, the FTB typically sends a “Notice of Intent to Levy” to the taxpayer. This notice informs you of the FTB’s intent to seize funds and provides a deadline to resolve the matter.
2. Levy Issuance: If the tax debt remains unpaid, the FTB will issue a levy to your bank. The bank is required to freeze the funds in your account up to the amount of the tax debt.
3. Hold Period: The bank holds the funds for 10 days before transferring them to the FTB. This hold period gives you a small window to resolve the issue.
4. Funds Transfer: After the hold period, the bank releases the levied funds to the FTB to satisfy your tax debt.

What Funds Can Be Levied?

The FTB can levy funds from:

• Checking accounts
• Savings accounts
• Money market accounts
• Joint accounts (even if the tax debt belongs to only one account holder)

What Is a California FTB Wage Garnishment?

A wage garnishment is another aggressive collection action used by the FTB to collect unpaid taxes. It involves deducting a portion of your wages directly from your paycheck until the tax debt is paid in full.

How Does Wage Garnishment Work?

1. Earnings Withholding Order (EWOT): The FTB issues an Earnings Withholding Order for Taxes (EWOT) to your employer, instructing them to withhold a portion of your wages.
2. Percentage of Wages Garnished: By default, the FTB can garnish up to 25% of your net pay (after taxes and mandatory deductions).
3. Duration: The garnishment continues until the tax debt, including penalties and interest, is fully paid or until the FTB releases the garnishment.

What Types of Income Can Be Garnished?

The FTB can garnish:

• Wages and salaries
• Bonuses
• Commissions
• Independent contractor payments

Why Did the FTB Issue a Bank Levy or Wage Garnishment Against Me?

The FTB typically resorts to bank levies and wage garnishments when taxpayers fail to address their tax liabilities. Common reasons include:

1. Unpaid Tax Debt: If you owe back taxes and have not made arrangements to pay, the FTB may take collection action.
2. Failure to Respond: Ignoring FTB notices or failing to respond to collection efforts can trigger a levy or garnishment.
3. Defaulted Payment Plans: If you entered into a payment plan but failed to comply with its terms, the FTB may escalate its collection efforts.
4. No Communication: Lack of communication with the FTB often leads to aggressive actions like levies and garnishments.

What Are the Consequences of a Bank Levy or Wage Garnishment?

FTB bank levies and wage garnishments can have serious financial and emotional consequences, including:

1. Financial Hardship: Losing access to your bank funds or a significant portion of your paycheck can make it difficult to pay for basic necessities like rent, utilities, and groceries.
2. Damaged Credit: Unresolved tax debts and collection actions can negatively impact your credit score.
3. Stress and Anxiety: The sudden loss of funds and the pressure to resolve the issue can take a toll on your mental health.
4. Legal Action: In extreme cases, the FTB may pursue additional legal actions, such as placing a lien on your property.

How Can You Stop an FTB Bank Levy or Wage Garnishment?

Stopping a bank levy or wage garnishment requires prompt action. Here are some potential solutions:

1. Pay the Tax Debt in Full

• The fastest way to stop a levy or garnishment is to pay the tax debt in full, including penalties and interest.

2. Negotiate a Payment Plan

• You can request an installment agreement with the FTB to pay your tax debt over time. Once the agreement is approved, the FTB may release the levy or garnishment.

3. File for a Hardship Release

• If the levy or garnishment causes significant financial hardship, you can request a hardship release. You will need to provide documentation of your financial situation to support your claim.

4. Submit an Offer in Compromise (OIC)

• An OIC allows you to settle your tax debt for less than the full amount owed. If accepted, the FTB will release the levy or garnishment.

5. Appeal the Levy or Garnishment

• If you believe the levy or garnishment was issued in error, you can file an appeal with the FTB.

How Mike Habib, EA, Can Help You Resolve Your FTB Levy Matter

Mike Habib, EA, is a highly experienced tax representation expert based in Los Angeles, CA. He specializes in helping taxpayers resolve FTB bank levies, wage garnishments, and other tax-related issues. Here’s how his firm can assist you:

1. Immediate Action to Stop Levies and Garnishments

• Mike Habib, EA, understands the urgency of your situation and takes immediate steps to stop levies and garnishments. This may involve contacting the FTB, negotiating a resolution, or filing for a hardship release.

2. Comprehensive Case Evaluation

• Mike Habib, EA, conducts a thorough review of your case to identify the best course of action. This includes analyzing your tax debt, financial situation, and any errors in the FTB’s actions.

3. Negotiation with the FTB

• With years of experience dealing with the FTB, Mike Habib, EA, knows how to negotiate effectively. He can help you secure a payment plan, OIC, or other resolution that meets your needs.

4. Representation During Appeals

• If you need to appeal a levy or garnishment, Mike Habib, EA, will represent you throughout the process. He will prepare and present a strong case to the FTB or the Office of Tax Appeals (OTA).

5. Long-Term Tax Solutions

• In addition to resolving your immediate issue, Mike Habib, EA, helps you develop a long-term strategy to stay compliant with California tax laws and avoid future levies or garnishments.

Why Choose Mike Habib, EA?

When it comes to resolving FTB levy matters, Mike Habib, EA, offers unparalleled expertise and personalized service. Here’s why taxpayers trust him:

1. Extensive Experience

• Mike Habib, EA, has years of experience representing clients in FTB disputes, including bank levies and wage garnishments.

2. Proven Results

• His firm has a track record of successfully resolving complex tax issues and helping clients achieve favorable outcomes.

3. Personalized Attention

• Mike Habib, EA, takes the time to understand each client’s unique situation and provides tailored solutions.

4. Aggressive Advocacy

• The FTB is known for its aggressive collection tactics, but Mike Habib, EA, is equally aggressive in defending his clients’ rights.

5. Convenient Los Angeles Location

• Based in Los Angeles, CA, Mike Habib, EA, is easily accessible to clients throughout California.

Steps to Take If You’re Facing an FTB Bank Levy or Wage Garnishment

If you’re dealing with a bank levy or wage garnishment, follow these steps to protect yourself:

1. Contact Mike Habib, EA
   • Schedule a consultation to discuss your case and explore your options.
2. Gather Documentation
   • Collect all relevant documents, including FTB notices, bank statements, and pay stubs.
3. Avoid Direct Communication with the FTB
   • Let your tax representative handle all communications to avoid making statements that could harm your case.
4. Act Quickly
   • Time is of the essence when dealing with levies and garnishments. Prompt action can prevent further financial damage.

FTB bank levies and wage garnishments are serious matters that require immediate attention. The Los Angeles-based tax representation firm of Mike Habib, EA, has the expertise and experience to help you resolve your levy matter and regain control of your finances. Whether you need assistance stopping a levy, negotiating with the FTB, or appealing a garnishment, Mike Habib, EA, is your trusted partner in navigating California’s complex tax laws.

Don’t let an FTB levy or garnishment disrupt your life. Contact Mike Habib, EA, today to schedule a consultation and take the first step toward resolving your tax issue.

Call us today at 1-877-788-2937