Franchise Tax Board

What Franchise Tax Board does

The Franchise Tax Board (FTB) is a California state government agency under the Government Operations Agency, established in 1929 and headquartered in the Rancho Cordova/Sacramento area with 5,001–10,000 employees. It is statutorily responsible for administering California's Personal Income Tax Law and Corporation Tax Law, serving individual residents, nonresidents and part-year residents, business entities (C-corporations, S-corporations, LLCs, partnerships), withholding agents, exempt organizations, and registered tax professionals across the state. Core products include the MyFTB online account portal (account management, payments, refunds, POA/TIA), the CalFile free direct e-filing service (accepting 2023, 2024, and 2025 tax years with 15–30 minute completion), tax forms (540, 540 2EZ, 540NR, 568, 592 series), and the SWIFT (Secure Web Internet File Transfer) system for large withholding agents with 250+ payees. Supporting infrastructure includes an Interactive Voice Response phone system, SMS text notifications, and TransUnion-powered identity verification at MyFTB account activation.

FTB operates as a non-commercial public entity rather than a revenue-generating enterprise. Tax compliance services such as CalFile are provided free of charge; administered revenue streams comprise personal income tax collections, corporation tax, the $800 LLC annual tax plus income-based fees (R&TC Sections 17941/17942), 7% nonresident withholding on California source income exceeding $1,500, pass-through and foreign partner withholding, and compliance-related fees/penalties (late filing 25% / min $135, late payment 5% + 0.5% monthly, dishonored payment, collection cost recovery under R&TC Section 19254). Distribution is direct-to-consumer via ftb.ca.gov, the MyFTB self-serve portal, field offices, IVR, USPS mail, and inter-agency referrals (IRS, CDTFA, EDD, Secretary of State, CTEC). Executive leadership comprises Executive Officer Selvi Stanislaus, CIO Nadean Shavor, and Chief Counsel Shane J. Hofeling, operating under Governor Gavin Newsom and Government Operations Agency Secretary Nick Maduros.

Name

Franchise Tax Board

Legal name

State of California Franchise Tax Board

Website

https://ftb.ca.gov

Company type

Private

Founded year

1929

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Franchise Tax Board is a California state government agency that administers personal income tax and corporation tax collection, serving California residents, businesses, withholding agents, and tax professionals through its MyFTB portal and CalFile e-filing service.

Ownership category

akta.pro rank

Product category

State Tax Administration

NAICS

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors (92615)

akta.pro primary industry

State/Provincial Taxation & Revenue Administration (BPAIABAD)

akta.pro secondary industries

Tax Policy, Legislation & Rulings (BPAIADAA), Dispute Resolution, Appeals & Tax Tribunals (BPAIADAK), Withholding & Payroll Tax Administration (BPAIADAI)

Keywords

• State tax administration
• Personal income tax filing
• Corporation tax collection
• Online tax e-filing
• Nonresident withholding compliance

Headquarters

HQ city

Sacramento

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Others

Revenue model

1. Personal Income Tax Collection: FTB administers and collects California's Personal Income Tax under the Personal Income Tax Law. Revenue comes from individual tax payments, estimated taxes, and withholdings.
2. Corporate Tax Collection: FTB administers and collects Corporation Tax under the Corporation Tax Law from C-corporations, S-corporations, and other corporate entities.
3. LLC Annual Tax and Fees: Limited Liability Companies pay an annual LLC fee based on total income from California sources (R&TC Sections 17941 and 17942), in addition to the $800 annual tax.
4. Nonresident Withholding: Withholding agents withhold 7% on California source payments exceeding $1,500 to nonresidents, with quarterly payment requirements.
5. Collection Cost Recovery Fees: FTB charges filing enforcement fees, collection fees, lien fees, federal treasury offset fees, and fees for seizure and sale of property to recover collection costs (R&TC Section 19254).

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels5 records

Core offering

The Franchise Tax Board administers California's Personal Income Tax Law and Corporation Tax Law for the State of California. It collects personal income tax from individual residents, nonresidents, and part-year residents; collects corporation tax and LLC annual fees from business entities; manages nonresident and pass-through withholding compliance; and provides the MyFTB online portal, CalFile free e-filing, and SWIFT bulk filing systems to facilitate compliance.

Product overview

The Franchise Tax Board (FTB) offers a comprehensive suite of California state tax administration services organized around the MyFTB online portal as the central hub for account management. The core product portfolio includes free e-filing through CalFile, various income tax return forms (Form 540, 540 2EZ, 540NR, 568), and withholding services (Forms 592, 592-PTE, 592-F). Tax professionals can access POA and TIA management systems, while all users benefit from text message notifications, the Fraud Referral Report System, and accessibility-compliant web services. The offering also includes refundable credits like the California EITC, YCTC, and FYTC, supported by an Alternative Communication Method system for electronic notices.

Differentiator

Problem solved

Functional benefit

Brands

• CalFile: Free online tax filing service provided by FTB for California state tax returns.

Products and services

• MyFTB Online Account Portal Online account management portal allowing individuals, business representatives, and tax professionals to access tax account information, view notices, make payments, check refund status, file forms, and communicate with FTB.
• CalFile E-Filing Service Free direct e-filing service for California state tax returns allowing taxpayers to file directly with FTB, receive real-time confirmation, and obtain fastest refunds via direct deposit.
• Form 540 California Resident Income Tax Return Standard state income tax return form for California resident taxpayers filing annual personal income tax returns.
• Form 540 2EZ California Resident Income Tax Return Simplified state income tax return form for single or married filers with straightforward tax situations.
• Form 540 NR California Nonresident or Part-Year Resident Income Tax Return State income tax return form for nonresidents and part-year California residents who received California-sourced income.
• Form 568 Limited Liability Company Return of Income Annual state return for Limited Liability Companies to report California limited liability tax and the LLC annual fee.
• Form 592 Nonresident Withholding Withholding service and form for payments to nonresidents, requiring 7% withholding on California source income exceeding $1,500 annually with quarterly payment requirements.
• Form 592-PTE Pass-Through Entity Withholding Annual withholding return for pass-through entities to report withholding on partner, member, shareholder, or beneficiary distributions.
• Form 592-F Foreign Partner or Member Withholding Annual return for withholding on foreign partners or members of California pass-through entities.
• SWIFT Secure Web Internet File Transfer Secure web-based file transfer system for withholding agents with 250 or more payees to file Forms 592 electronically with FTB.
• Power of Attorney (POA) Management Online system through MyFTB enabling tax professionals to submit, manage, and revoke Power of Attorney declarations for client representation before FTB.
• Tax Information Authorization (TIA) Online authorization system allowing tax professionals to access client tax information through MyFTB with proper taxpayer authorization.
• Fraud Referral Report System Online system for reporting tax fraud, evasion, scams, identity theft, and data breaches to the Franchise Tax Board.
• Scam Reporting System Online portal for reporting text, email, phone, or mail tax-related scams via phishing activity reports to FTB.
• Text Message Notification Service SMS-based notifications for appointment confirmations, MyFTB verification codes, IVR text requests, and account alerts including new notices and POA approvals.
• Alternative Communication Method (PECM) Electronic notification system allowing taxpayers to receive FTB notices via email, text, or other alternative communication methods through the MyFTB secure folder.
• California Earned Income Tax Credit (EITC) Refundable state tax credit for low-to-moderate income taxpayers who earned wage income subject to California withholding.
• Young Child Tax Credit (YCTC) Refundable state tax credit for EITC claimants with at least one qualifying child under six years old.
• Foster Youth Tax Credit (FYTC) Refundable state tax credit for individuals aged 18-25 who were in California foster care while 13 or older and qualify for EITC.

Quantifiable outcome

• CalFile takes 15-30 minutes to complete tax filing
• +2 more outcomes

Segments6 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

Feature3 records

Partnerships

Seven partnerships are on record, tiered core.

• Internal Revenue Service (IRS)coreTechnology or IntegrationFTB works with the IRS for federal tax information sharing, electronic filing coordination, and cross-agency taxpayer verification. The CalFile product directs users to IRS for federal filing at irs.gov/efile.
• California Secretary of StatecoreTechnology or IntegrationFTB coordinates with the Secretary of State for business entity filings, suspended/forfeited corporation status, and state tax lien recordings. LLCs must file Statements of Information with the Secretary of State.
• Employment Development Department (EDD)coreTechnology or IntegrationFTB refers taxpayers to EDD for payroll tax, unemployment, disability, and paid family leave matters. Cross-agency fraud referral coordination.
• California Department of Tax and Fee Administration (CDTFA)coreTechnology or IntegrationFTB refers taxpayers to CDTFA for sales tax, cannabis tax, fuel tax, cigarette tax, and tobacco products violations. Cross-agency tax administration coordination.
• California Tax Education Council (CTEC)coreChannel Partner/ Reseller/ DistributorCTEC is the state-authorized body for registering tax preparers in California. FTB enforces CTEC registration requirements and refers non-registered preparer complaints to CTEC for enforcement action.
• TransUnioncoreTechnology or IntegrationTransUnion provides identity verification services during MyFTB account registration through 'Activate your account now' option using credit agency questions for instant access.
• California Governor's Office and Government Operations AgencycoreOthersFTB is under the Government Operations Agency led by Secretary Nick Maduros and reports to Governor Gavin Newsom. Part of the executive branch of California state government.

Scale indicators1 record

Recent moves6 records

Expansion highlights6 records

Others

• Avalara: Commercial tax compliance automation vendor primarily serving businesses (sales tax, VAT, excise); not a direct competitor to FTB but operates in the adjacent compliance software space relevant to FTB's business taxpayer segments.
• California Employment Development Department (EDD): California's sister state agency administering payroll taxes, unemployment insurance, disability, and paid family leave — complementary to FTB's personal income tax mandate, with formal cross-agency referral coordination.
• Intuit TurboTax: Leading commercial tax preparation software that competes for California taxpayer mindshare; FTB's free CalFile offering is positioned as a direct alternative to TurboTax's paid federal/state products.
• H&R Block: Major commercial tax preparation retailer and software provider; offers both DIY online filing and in-person assisted preparation that overlaps with the taxpayer audience FTB serves through CalFile and MyFTB.

Direct peers

• Illinois Department of Revenue: State tax administration authority administering Illinois individual income tax, corporate income tax, and other state taxes, with MyTax Illinois online portal analogous to FTB's MyFTB.
• Texas Comptroller of Public Accounts: Texas's state tax and revenue administration authority, including state income tax (no personal income tax but corporate franchise tax) and overall state revenue accounting — a comparable state-government tax administration role.
• New York State Department of Taxation and Finance: State-level tax administration agency performing the same personal income tax and corporate tax functions for New York residents and businesses, the closest functional analog to FTB outside of California.
• Florida Department of Revenue: Florida's state revenue agency administering corporate income tax, sales/use tax, and reemployment tax for the third-most-populous U.S. state. Provides a directly comparable state-level tax administration function.
• California Department of Tax and Fee Administration (CDTFA): California's sister state tax agency, administering sales and use tax, fuel tax, cannabis tax, and other excise taxes. Operates in the same state, with a directly comparable regulatory and collections mandate that FTB cross-refers to.

Broad incumbents

• Internal Revenue Service (IRS): The U.S. federal tax authority with a broader scope than FTB; administers federal income tax nationally. FTB coordinates directly with IRS for taxpayer information sharing, federal-state e-file coordination, and federal treasury offsets.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/CA_FTBFiling_SC
• YouTubeyoutube.com/user/FranchiseTaxBoard
• Facebookfacebook.com/franchisetaxboard
• LinkedInlinkedin.com/company/franchise-tax-board
• Instagraminstagram.com/calftb

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Franchise Tax Board