Payment plans an option for taxpayers

SACRAMENTO - Taxpayers who owe money to the state are being advised to contact the Franchise Tax Board if they cannot pay by April 18.The tax board can oftentimes offer payment plans, grant temporary tax relief and sometimes delay collection, officials said. Requests for payment plans are generally approved if the balance owed is less than $25,000 and can be paid within 60 months. State tax liens typically must be paid before real estate can be sold. When a home is selling for less than the loan balance, the Franchise Tax Board can remove its tax lien from the property to allow the homeowner to complete the sale. Financially distressed taxpayers trying to sell their home can be relieved of the tax lien within two weeks of submitting their required documents, officials said. The tax lien remains in effect on any other property the taxpayer currently holds or later acquires. The tax board can also subordinate a tax lien, which helps taxpayers refinancing or modifying existing home loans by permitting a bank to refinance the property. More information is available online at

********** Published: March 3, 2011 - Volume 9 - Issue 46