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  1. #1
    Join Date
    Sep 2014
    Posts
    2

    Default Can the California EDD Levy an Out-of-State Bank Account

    We used to live in CA and had several businesses there, now we live in AZ for the past 5 years. Our AZ BK got discharged in January 2014 and in March I wrote all tax departments, federal and state, if they could let me know of any unpaid tax obligations in our name or our past business names. I have not received one letter back from any agency. On September 25th, our bank accounts were levied in Arizona by the EDD California. I called the levy phone number right away and was told that somebody had e-filed for a business my husband owned in CA for the years 1998 and 1999. I asked if I could get a copy of these e-file forms and my request was denied. I was always the bookkeeper and I never e-filed anything. I told the lady from the EDD that the money in our account was from an insurance company for medical bills which my husband had incurred from a rear-end accident by one of their client and was paid to us to pay the hospital bills for my husband. The EDD lady told me it did not matter where the money came from or what it was intended for, it belonged now to the EDD.
    RESULTS found in STORAGE: The fictitious name for the CA restaurant in question was filed on 5/12/97 and the abandonment was filed on 12/18/98. State Board of Equalization in CA was paid from about September 97 to October 98. No EDD file was found for this restaurant because it may be in a different storage box or storage location because I just had worked on tax obligations in March 2014.

    I found 4 EDD liens recorded in CA searching the recorder's web site:

    1) Tax period 10/1/97 to 9/30/98, recorded 5/28/99, no extension filed
    2) Tax period 1/1/98 to 6/30/99, recorded 3/17/00, extension filed 1/19/2010 (in time)
    3) Tax period 1/1/99 to 6/30/00, recorded 2/23/01, extension filed 9/30/2010 (in time)
    4) Tax period 1/1/00 to 6/30/00, recorded 6/28/01, tax release filed on 8/10/05

    It has been a very long time since we operated this restaurant and I assume with great believe that Tax Lien #1 was the one they were talking about because we indeed were in business during these month but no extension was filed within the 10 year period and the lien is therefore invalid.

    Are we responsible for lien #2 because the tax period dates are overlapping?

    Can the CA EDD levy an AZ personal bank account?

    Is it legal of CA EDD to refuse to send me a copy of the e-file document in their possession on our behalf by somebody for the years 1998 and 1999, even we were only partially in business in 1998 and not at all in 1999?

    I know there are protected monies in a personal bank account which can not be levied, like Social Security income, SSI, Workmens Comp and others. Is an insurance check from a car accident which is intended to be used for paying hospital bills for an insured who got rear-ended considered "PROTECTED MONEY"?

    I have 4 questions which I like to have answered and I really like to thank anybody who is willing to help me out. Thank you so much! pdgoldinc

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can the California EDD Levy an Out-of-State Bank Account

    If you don't believe that the EDD correctly calculated the amount of tax you owe, take it up with your accountant or the EDD.

    The Franchise Tax Board can potentially levy an out-of-state account, but to do so they would have to utilize judicial process in the out-of-state jurisdiction -- their power to levy against in-state accounts is predicated on state law, and that power ends at the border. Note that interstate banking operations can come into play, such that an account with a financial institution that operates in California could be potentially subjected to a levy even if the account is opened out-of-state.

  3. #3
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Can the California EDD Levy an Out-of-State Bank Account

    Quote Quoting pdgoldinc
    View Post
    Are we responsible for lien #2 because the tax period dates are overlapping?
    I suspect that the EDD will say you are so it doesn't matter what anybody here thinks.

    Quote Quoting pdgoldinc
    View Post

    Can the CA EDD levy an AZ personal bank account?
    Obviously the EDD CAN do it because the EDD DID do it.

    If you want to stop it, you'll need to figure out how to go to court and stop it. Consult an attorney.

    Quote Quoting pdgoldinc
    View Post

    Is it legal of CA EDD to refuse to send me a copy of the e-file document in their possession on our behalf by somebody for the years 1998 and 1999, even we were only partially in business in 1998 and not at all in 1999?
    Can't imagine that there's any law prohibiting that refusal.

    Quote Quoting pdgoldinc
    View Post
    Is an insurance check from a car accident which is intended to be used for paying hospital bills for an insured who got rear-ended considered "PROTECTED MONEY"?
    No.

  4. #4
    Join Date
    Sep 2014
    Posts
    2

    Default Re: Can the California EDD Levy an Out-of-State Bank Account

    Thank you very much for your reply. It seems that the tax authorities have all rules on their side. I am in process of straightening the issue with the EDD and your answer has been very helpful! Thank you!

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