FTB Form 3567: How to Request an Installment Agreement with California’s Franchise Tax Board

Owing money to the California Franchise Tax Board (FTB) doesn’t always mean you need to pay it all at once. If you can’t cover your state income tax bill in full, Form 3567, officially called the Installment Agreement Request, is the document that lets you ask the FTB for a monthly payment plan instead of facing immediate collection action.

This form is issued by the California Franchise Tax Board, the agency responsible for collecting personal income tax and certain business taxes in the state. Unlike a federal IRS installment agreement, Form 3567 applies only to balances owed to California, so it’s a separate process from any arrangement you might have with the IRS for federal taxes.

Who Needs to File Form 3567

This form is meant for individual taxpayers who owe back taxes to California and don’t have the funds available to pay the full balance by the deadline. It’s commonly used by people who received a Notice of Balance Due, a demand for payment, or who simply know ahead of filing that they won’t be able to pay in one lump sum. Self-employed individuals, gig workers, and anyone who underpaid estimated taxes during the year are frequent filers of this request.

It’s worth noting that Form 3567 is not automatically approved just because you submit it. The FTB reviews your financial situation, including your income, expenses, and the total amount owed, before deciding whether to grant the installment agreement and what the monthly payment amount will be.

When to Use This Form

You should submit Form 3567 as soon as you know you can’t pay your California tax liability in full. Waiting until the FTB has already started collection action, such as a wage garnishment or bank levy, makes the process harder and reduces your negotiating position. Ideally, this request should go in shortly after you file your return or receive a balance-due notice, rather than months later.

Keep in mind that penalties and interest continue to accrue on the unpaid balance even after an installment agreement is approved. The plan simply prevents more aggressive collection measures while you pay down what you owe over time.

How to Fill Out and Submit Form 3567

The PDF version of this form is fillable digitally, meaning you can type your information directly into the document before printing or submitting it, rather than filling it out by hand. You’ll need to provide:

• Your full name, Social Security number, and current mailing address
• The tax year(s) for which you owe money
• The total balance due
• Your proposed monthly payment amount
• Basic information about your income and monthly expenses

Once completed, the form is typically mailed to the address listed in the instructions, though the FTB also allows some taxpayers to set up payment plans directly through their online MyFTB account, which can be faster than mailing a paper form.

State tax forms vary widely depending on where you live and what kind of income you’re reporting. If you also deal with tax filings in other states, resources like the explanation of Form IT-204-CP for New York corporate partners or the breakdown of Form IT-204.1 can help you understand how different state agencies handle partnership and corporate reporting, which is useful context if you split time or income between states like California and New York.

Before submitting Form 3567, double check that your tax return itself has actually been filed. The FTB generally won’t set up a payment plan for a balance tied to a return that hasn’t been submitted yet, so filing first and requesting the installment agreement second is the correct order of operations. If you’re unsure about your total balance or the years involved, pulling your account transcript through MyFTB before filling out the form can prevent errors that delay approval.