2007 California Revenue and Taxation Code Article 1. Security For Tax

CA Codes (rtc:11451-11453)

11451.  (a) If any person is delinquent in the payment of the amount
required to be paid by him or her or in the event a determination
has been made against  him or her which remains unpaid, the board
may, not later than four years after the payment became delinquent,
or within 10 years after the last recording of an abstract under
Section 11495 or the last recording or filing of a notice of state
tax lien under Section 7171 of the Government Code, give notice
thereof personally or by first-class mail to all persons, including
any officer or department of the state or any political subdivision
or agency of the state, having in its possession or under its control
any credits or other personal property belonging to the delinquent,
or person against whom a determination has been made which remains
unpaid, or owing any debts to the delinquent or that person.  In the
case of any state officer, department, or agency, the notice shall be
given to the officer, department, or agency prior to the time it
presents the claim of the delinquent taxpayer to the Controller.
After receiving the notice, the persons so notified shall neither
transfer nor make any other disposition of the credits, other
personal property, or debts in their possession or under their
control at the time they receive the notice until the board consents
to a transfer or disposition or until 60 days elapse after the
receipt of the notice, whichever period  expires earlier.  All
persons so notified shall forthwith, after receipt of the notice,
advise the board of all the credits, other personal property, or
debts in their possession, under their control, or owing by them.
   (b) If the notice seeks to prevent the transfer or other
disposition of a deposit in a bank or a state or federal savings and
loan association or other credits or personal property in the
possession or under the control of a bank or a state or federal
savings and loan association, the notice to be mailed shall state the
amount, interest, and penalty due from the person and shall be
delivered or mailed to the branch or office of the bank or the state
or federal savings and loan association at which the deposit is
carried or at which the credits or personal property is held.  A
bank, a state or federal savings and loan association, or a state or
federal credit union withholding any deposit or other credits or
personal property required to be withheld in which the delinquent
taxpayer and another person or persons have an interest, or held in
the name of a third party or parties in which the delinquent taxpayer
is ultimately determined to have no interest, is not liable therefor
to any of the persons who have an interest in the deposit or other
credits or personal property unless the deposit or other credits or
personal property is released or transferred to the delinquent
taxpayer.
   (c) In the case of a deposit or other credits or personal property
for which the transfer or other disposition is prevented, the
depository institution required to prevent transfer or other
disposition shall send a notice by first-class mail to each person
named on a deposit, other credits, or personal property included in
the notice from the board, provided a current address for each person
is available to the depository institution.  This notice shall
inform each person as to the reason for preventing transfer or
disposition of the deposit or other credits or personal property, the
amount thereof which is prevented from transfer or other
disposition, and the date by which that amount is to be remitted to
the board.  An institution may assess the deposit or other credits or
personal property of each person receiving this notice a reasonable
service charge not to exceed three dollars ().
   (d)  Notwithstanding any other provision, with respect to a
deposit in a bank or a state or federal savings and loan association
or other credits or personal property in the possession or under the
control of a bank or a state or federal savings and loan association,
the aggregate amount of deposits, credits, or personal property to
be withheld shall be an amount equal to two times the amount of the
tax, interest, or penalty due from the person.  If, during the
effective period of the notice to withhold, any person so notified
makes any transfer or disposition of the property or debts required
to be withheld, to the extent of the value of the property or the
amount of the debts thus transferred or paid, he or she shall be
liable to the state for any indebtedness due under this part from the
person with respect to whose obligation the notice was given if
solely by reason of that transfer or disposition the state is unable
to recover the indebtedness of the person with respect to whose
obligation the notice was given.



11452.  (a) Subject to the limitations in subdivisions (b) and (c),
the board may, by notice of levy, served personally or by first-class
mail, require all persons having in their possession, or under their
control, any credits or other personal property belonging to a
person as defined in this part who is liable for any amount under
this part to withhold from those credits or other personal property
the amount of any tax, interest, or penalties due from that person,
or the amount of any liability incurred by him or her under this
part, and to transmit the amount withheld to the board at those times
as it may designate.
   (b) The person served shall continue to withhold pursuant to the
notice of levy until the amount specified in the notice, including
accrued interest, has been paid in full, until the notice is
withdrawn, or until one year from the date the notice is received,
whichever occurs first.
   (c) The amount required to be withheld is the lesser of the
following:
   (1) The amount due stated on the notice.
   (2) The amount of each payment due or becoming due to the person
liable during the period of the levy.
   (d) For the purposes of this section, "payments" does not include
earnings, as defined in subdivision (a) of Section 706.001 of the
Code of Civil Procedure, or funds in a deposit account, as defined in
paragraph (29) of subdivision (a) of Section 9102 of the Commercial
Code.  "Payments" does include all of the following:
   (1) Payments due for services for independent contractors,
dividends, rents, royalties, residuals, patent rights, and mineral or
other natural rights.
   (2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the person liable for the tax.

   (3) Any other payments or credits due or becoming due the person
liable as the result of written or oral contracts for services or
sales whether denominated as wages, salary, commission, bonus, or
otherwise.
   (e) In the case of a financial institution, to be effective, the
notice shall state the amount due from the taxpayer and shall be
delivered or mailed to the branch or office of the financial
institution where the credits or other property is held, unless
another branch or office is designated by the financial institution
to receive the notice.



11453.  (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure, if the board determines upon receiving
information from a person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant to Section
11452 and failed to remit the withheld earnings to the board, the
employer shall be liable for the amount not remitted.  The board's
determination shall be based on payroll documents or other
substantiating evidence furnished by the person liable for the tax.
   (b) Upon its determination, the board shall mail notice to the
employer at its last known address that upon failure to remit the
withheld earnings to the board within 15 days of the date of its
notice to the employer, the employer shall be liable for that amount
which was withheld and not remitted.
   (c) If the employer fails to remit the amount withheld to the
board upon notice, that amount for which the employer is liable shall
be determined, collected, and paid as though it were a tax
deficiency.  The amount may be assessed at any time prior to seven
years from the first day that the unremitted amount, in the
aggregate, was first withheld.  Interest shall accrue on that amount
from the first day that the unremitted amount, in the aggregate, was
first withheld.
   (d) When the determination against the employer is final and due
and payable, the person's account shall be immediately credited with
an amount equal to that determined amount as though it were a payment
received by the board on the first date that the unremitted amount,
in the aggregate, was first withheld by the employer.
   (e) Collection against the person liable for the tax is stayed for
both the following amount and period:
   (1) An amount equal to the amount determined by the board under
subdivision (a).
   (2) The earlier of the time the credit is applied to the person's
account pursuant to subdivision (d) or the determination against the
employer is withdrawn or revised and the person is notified by the
board thereof.
   (f) If under this section an amount that was withheld and not
remitted to the board is final and due and payable by the employer
and credited to the person's account, this remedy shall be the
exclusive remedy for the person to recover that amount from the
employer.
   (g) This section shall apply to determinations made by the board
on or after the effective date of the act adding this section.