FTB Full Collection Program DCSS

The Sacramento County Department of Child Support Services must alert the Franchise Tax Board anytime a non-custodial parent is more than $100.00 and 30 days past due in paying support. The Franchise Tax Board can take funds from bank accounts, rental incomes, royalties, dividends, and commissions. The Franchise Tax Board can also issue an Earnings Withholding Order (EWO) as well as take real and personal property, such as vacant land, cash, safe deposit boxes, vehicles, and even boats, to collect child support.

Once delinquent cases are submitted to the Franchise Tax Board Child Support Collection Program and accepted, FTB will send out a Demand for Payment notice to the non-custodial parent. If the notice does not result in a payment, FTB has the option to issue a levy against wages, bank accounts, or other of the above mentioned items. A bank levy can require the bank to withhold up to the total amount of arrears owed on the child support case. An EWO can require an employer to withhold up to 50% of the non-custodial parent’s net disposable income. These actions are taken under administrative authority and so are much faster than judicial proceedings. This program is administered by FTB and when money is collected, it is forwarded to Child Support Services for disbursement.

Regulation Change!! Effective July 1, 2004, AB 1752 (see Assembly Bill 1752 or Click Here) amended Revenue and Taxation Code (RTC) 19271.6 to require that all cases, including cases with functioning wage assignments and cases that have been open with the Local Child Support Agency for less than 90 days, be submitted to FTB. However, if (1) an obligor is in compliance with a court order to make scheduled payments on a child support arrears obligation, (2) an earnings assignment order or an order/notice to withhold that includes an amount for past-due support is in place and earnings are being withheld pursuant to that order, or (3) at least 50 percent of the obligor’s earnings are currently being withheld for support, the first $3,500 of an obligor’s assets in a financial institution are exempt from collection without a Claim of Exemption being filed. In addition to the $3,500 exemption, an obligor in the three situations set out above may apply for a Claim of Exemption for up to the total amount of funds levied. The only basis for a Claim of Exemption is the financial hardship of the obligor and the obligor’s dependents. To make a Claim of Exemption, a Claim of Exemption form must be filed with the Local Child Support Agency.

What does this mean? The new regulation requires all cases be referred to the Franchise Tax Board for assistance in collecting support, even those cases in which the non-custodial parent is paying regularly. FTB is then required to seize funds in bank and brokerage accounts. The first $3,500 total in those accounts is “safe” from seizure, without any action on behalf of the non-custodial parent. In order to oppose the seizure of funds over $3,500, a non-custodial parent must file a Claim of Exemption form with the Local Child Support Agency on whose behalf FTB is collecting. This form is available on this website under “forms” or Click Here...

If you have an EWO on your wages at your place of employment or would like to file a Claim of Exemption please contact our Public Service Center at 916-875-7400 for assistance.

Franchise Tax Board Child Support Collections Program