2005 California Revenue and Taxation Code Sections 19221-19226 Article 2. Lien of Tax

19221.  (a) If any taxpayer or person fails to pay any liability
imposed under Part 10 (commencing with Section 17001) or Part 11
(commencing with Section 23001) at the time that it becomes due and
payable, the amount thereof, (including any interest, additional
amount, addition to tax, or penalty, together with any costs that may
accrue in addition thereto) shall thereupon be a perfected and
enforceable state tax lien.  This lien is subject to Chapter 14
(commencing with Section 7150) of Division 7 of Title 1 of the
Government Code.
   (b) For the purpose of this section, amounts are "due and payable"
on the following dates:
   (1) For amounts of any liability disclosed on a return filed on or
before the date payment is due (with regard to any extension of time
to pay), the date the amount is established on the records of the
Franchise Tax Board, except that in no case will it be prior to the
day after the payment due date;
   (2) For amounts of any liability disclosed on a return filed after
the date payment is due (with regard to any extension of time to
pay), the date the amount is established on the records of the
Franchise Tax Board;
   (3) For amounts of any liability determined under Section 19081 or
19082 (pertaining to jeopardy assessments), the date the notice of
the Franchise Tax Board's finding is mailed or issued;
   (4) For all other amounts of liability, the date the assessment is
final.
   (c) Notwithstanding subdivision (a), during any period that
Section 362 of Title 11 of the United States Code applies, any tax
lien that would otherwise attach to property by reason of subdivision
(a) shall not take effect, unless the tax is a debt of the debtor
that will not be discharged in the bankruptcy proceeding and the
property or its proceeds are transferred out of the bankruptcy estate
to, or otherwise revested in, the debtor.
19222.  For the purposes of this section, if any certified,
treasurer's, or cashier's check (or other guaranteed draft), or any
money order received in payment of any liability imposed under Part
10 (commencing with Section 17001), Part 11 (commencing with Section
23001), or this part is not duly paid, the state shall, in addition
to its right to exact payment from the party originally indebted
therefor, have a perfected and enforceable state tax lien for the
amount of that check (or draft) upon all the assets of the financial
institution on which drawn or for the amount of that money order upon
all the assets of the issuer thereof.  The lien  referred to in the
preceding sentence shall be subject to Chapter 14 (commencing with
Section 7150) of Division 7 of Title 1 of the Government Code.
19223.  Upon recordation or filing of a notice of state tax lien
pursuant to Section 7171 of the Government Code by the Franchise Tax
Board for any taxes due from the grantor of a trust on income of the
trust which is taxable to the grantor under Part 10 (commencing with
Section 17001), and upon its giving notice of the recording or filing
pursuant to Section 7171 of the Government Code to the fiduciary of
the trust, or in case there is more than one fiduciary to any one of
the fiduciaries, the amount of the taxes constitutes a lien upon all
the real or personal property of the trust in the county owned by the
trust or afterwards and before the lien expires acquired by the
trust.  The lien has the force, effect, and priority of a lien
created pursuant to Section 19221.
19224.  The notice required to be given by Section 19223 may be
served upon the fiduciary personally, or by mail; if by mail, service
shall be made pursuant to Section 1013 of the Code of Civil
Procedure and shall be addressed to the fiduciary at his or her
address as it appears in the records of the Franchise Tax Board.
19225.  (a) (1) The Franchise Tax Board shall notify in writing the
person described in Section 19221 of the filing or recording of a
notice of state tax lien as provided under Chapter 14 (commencing
with Section 7150) or Chapter 14.5 (commencing with Section 7220) of
Division 7 of Title 1 of the Government Code.
   (2) The notice required under paragraph (1) shall be mailed in
accordance with Section 2885 of the Civil Code no less than five
business days after the day of the filing of the notice of lien.
   (3) The notice shall specify, in simple and nontechnical terms,
all of the following:
   (A) The amount of unpaid tax.
   (B) The right of the person to request a review during the 15-day
period beginning on the day after the five-day period described in
paragraph (2).
   (C) The independent departmental administrative review available
to the taxpayer with respect to the lien and the procedures to obtain
that review.
   (D) The procedures relating to the release of liens on property.
   (b) (1) The Taxpayers' Rights Advocate shall establish procedures
for an independent departmental administrative review requested under
subparagraph (C) of paragraph (3) of subdivision (a).
   (2) A person shall be entitled to only one review under this
section with respect to the taxable period to which the unpaid tax
specified in subparagraph (A) of paragraph (3) of subdivision (a)
relates.
   (3) An independent departmental administrative review under this
subdivision shall be conducted by an officer or employee, or officers
or employees, who have had no prior involvement with respect to the
unpaid tax specified in subparagraph (A) of paragraph (3) of
subdivision (a) before the first review under this section or Section
21015.5.  A taxpayer may waive the requirement of this paragraph.
Administrative review under this paragraph is not subject to Chapter
4.5 (commencing with Section 11400) of Part 1 of Division 3 of the
Government Code.
   (4) To the extent practicable, a review under this section shall
be held in conjunction with a review under Section 21015.5.
   (c) For purposes of this section, subdivision (c) of Section
21015.5 shall apply.
   (d) This section is operative for any collection action initiated
after the date which is 180 days after the effective date of the act
adding this section.
19226.  (a) At the request of the owner whose property is subject to
any lien under Section 19221, the Franchise Tax Board shall issue a
release of lien from that property if the owner is not the person
whose unsatisfied liability gave rise to the lien and the owner does
either of the following:
   (1) Deposits with the Franchise Tax Board an amount of money equal
to the value of the interest of the state (as determined by the
Franchise Tax Board) in the property.
   (2) Furnishes a bond acceptable to the Franchise Tax Board in a
like amount.
   (b) The Franchise Tax Board shall refund the amount so deposited,
pay interest at the overpayment rate under Section 19521, and release
the bond, to the extent the Franchise Tax Board determines that
either of the following apply:
   (1) The unsatisfied liability giving rise to the lien can be
satisfied from a source other than the property for which the deposit
or bond is made.
   (2) The value of the interest of the state in the property is less
than the Franchise Tax Board's prior determination of the value.
   (c) If no request is made under subdivision (d), within the period
prescribed, the Franchise Tax Board shall do both of the following
within 60 days after the expiration of the period:
   (1) Apply the amount deposited or collected on the bond, to the
extent necessary to satisfy the unsatisfied liability secured by the
lien.
   (2) Refund (with interest at the overpayment rate under Section
19521) any portion of the amount deposited which is not used to
satisfy the liability.
   (d) If a release is issued pursuant to this section, the owner
may, within 60 days after the day on which the release is issued,
request the Franchise Tax Board as provided under subdivision (f) to
determine whether the value of the interest of the state (if any) is
less than the Franchise Tax Board's prior determination of the value.
  No other action may be brought by the owner for a determination.
   (e) This section shall not limit the circumstances in which the
Franchise Tax Board may release a lien under any circumstances to
facilitate the collection of the tax liability or, if that release is
in the best interest of the taxpayer and the state, take any action
associated with the release of that lien it deems appropriate.
   (f) The Taxpayers' Rights Advocate shall establish procedures for
an independent departmental administrative review for requests made
under subdivision (d).  This administrative review shall not be
subject to Chapter 4.5 (commencing with Section 11400) of Part 1 of
Division 3 of the Government Code.  If the administrative review
determines that the Franchise Tax Board's previous determination of
the value of the interest of the state in the property for purposes
of this section exceeds the actual value of the state's interest, the
board shall provide a refund of the amount deposited and a release
of the bond, to the extent that the aggregate of the amounts thereof
exceeds the value so determined.  In the case of a refund issued
pursuant to this subdivision, interest shall be allowed at the rate
prescribed for overpayments from the date the Franchise Tax Board
receives the amount to the date of refund.
   (g) This section shall be operative on the effective date of the
act adding this section.