Monthly Success Story: May 2026
Client Success Story – FTB Tax Resolution Client: L.S.
When L.S. came to us, she was facing a situation that felt completely overwhelming — multiple years of unfiled tax returns, outstanding liabilities with the California Franchise Tax Board (FTB) dating back to 2003 and 2006, and the emotional weight of not knowing where things stood with the tax authorities.
The Challenge: L.S. had unresolved FTB tax liabilities spanning over two decades. What made this case particularly complex was a perfect storm of obstacles:
- Initial FTB notice in December 2024 showed a total balance due of $36,944.55, accompanied by a tax lien notice
- All personal and financial records had been stolen from a public storage unit, leaving virtually no documentation to work with
- Income records from 2003 and 2006 were nearly impossible to reconstruct— the IRS only retains income data for the last 10 years, requiring a formal request to the Social Security Administration (Form SSA-750) to retrieve earnings from that far back
- During some of those years, L.S. had experienced periods of mental instability, making it difficult to have maintained records or addressed tax obligations at the time
- She was facing active FTB collection action and a tax lien with no clear path forward
What We Did:
- Pursued every available avenue to reconstruct income records, including IRS transcripts and a formal SSA earnings request
- Filed 2003 return with zero income— after the FTB had originally billed $24,131 in tax, the liability was reduced to zero
- Filed 2006 return with only $4 in tax due— after the FTB had originally billed $7,175 in tax; even after penalties were applied, the total came to only $1,544 — a dramatic reduction
- Secured a 6-month FTB collection hold, providing critical breathing room
- Brought multiple years of unfiled returns — 2006, 2021, 2022, and 2023— back into full compliance
- Negotiated a manageable payment plan of $250/month for approximately 25 months, pending approval
The Results — By the Numbers:
| Item | FTB Original Bill | Final Outcome |
|---|---|---|
| 2003 Tax | $24,131 | $0 |
| 2006 Tax | $7,175 | $4 (plus penalties = $1,544) |
| Total Savings on 2006 Alone | — | $6,300 |
| Total FTB Liability Across All Years (2006, 2021, 2022, 2023) | $36,944.55 | $6,035 |
| Payment Plan | — | $250/month for approximately 25 months |
| Total Savings for L.S. | — | Over $30,900 |
The Results:
Despite extraordinary challenges — a tax lien, stolen records, decades-old liabilities, and years of personal hardship — L.S. is now on solid ground. A tax burden that once felt insurmountable has been resolved, her liabilities dramatically reduced, compliance fully restored, and a lien that threatened her financial future addressed.