If the California Franchise Tax Board orders your bank to remit money to pay a tax bill, the bank will usually notate this a “legal debit order” or “legal order franchise tax board,” or “legal order debit franchise tax board” and “legal order debit Wells Fargo,” if you are a Wells Fargo customer.

Is this legal? If you have an overdue tax balance with the California FTB, it may become a court-ordered liability. Courts may send the FTB various liabilities for collection. The FTB may then levy the money from your paycheck or bank account to satisfy your liability.

If you get mail from your back that has the phrases legal order debit franchise tax board or legal order franchise tax board, this is what has happened. You may also see these phrases within your online bank interface.

My bank got levied by the FTB. Can I get my money back?

We get this question almost every day because the Franchise Tax Board levies hundreds of people every day. In many cases, we can get some or all of your money back. It depends on a number of circumstances to complex on combination to cover here. If you have been levied by the FTB, call us for a free assessment of your rights and options.

In addition to taxes, the FTB may assist in collecting other liabilities. Possible court-ordered liabilities may include unpaid traffic tickets, victim compensation, probation, and other court fees.

Orders to Withhold (OTW)

An OTW is a one-time order taking 100% of the available assets or the entire balance due, whichever is less.

These are three areas of OTWs the FTB issues:

• • Order to Withhold for Taxes, served on employers to garnish an employee for taxes owed
  • Order to Withhold – Court-Ordered Liability Collections
  • Order to Withhold for Vehicle Registration Liability

Continuous order to withhold (COTW)

A COTW is an order that attaches to payments you may be entitled to and remains in effect for up to 12-months.

The following may be served an Orders to Withhold:

• • Employers
  • Banks or other financial institutions
  • Escrows
  • Businesses paying other businesses or individuals (Accounts Receivable levy)
  • Individual paying for services provided
  • Renter (the FTB can intercept a landlord’s rental payments)

To summarize, if you get mail with “legal order debit” or see “legal order debit” in your Wells Fargo or other bank accounts, call us or use the below form to learn your options.