Harriet B. Alexson Banking Law Blog on Lawyers.com

The IRS may legally seize real or personal property in order to satisfy unpaid tax debt by imposing a levy on the taxpayer. Levies may also be imposed upon the taxpayer’s bank accounts, wages, and certain government payments.  If the IRS has already sent a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing then the taxpayer has 30 days from the date of the notice to request a Collection Due Process (“CDP”) hearing. After a hearing, the determination may be challenged for a 30 day period.  If a bank account is levied then the bank will freeze the account for 21 days before transferring the money to the IRS. The levy will terminate under three (3) circumstances:  (a) if the tax debt has been paid, or (b) the statute of limitations has expired, or (c) the IRS releases the lien.

The California FTB may garnish a bank account in order to satisfy a delinquent tax balance. Once the FTB has issued a notice to withhold for the amount due from the taxpayer, a financial institution has 10 business days to transmit the funds. If the assets are securities, then the financial institution has 90 days to liquidate the funds before sending the money to the FTB.

If you are interested in learning more about California Taxation law, please visit http://www.AlexsonLaw.com