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Publication 54 •Collection Procedures 5
The following documents must be Requests for copies of the lien life insurance, or commissions, or
submitted in order for the CDTFA to release • If you hold an alcoholic beverage
consider a partial release of lien: license, the CDTFA could seize
At your request, the CDTFA will
• The taxpayer or escrow officer’s send out copies of the lien release. and sell that license, or
written request explaining why a For example, you may want to have • The CDTFA could seize and
partial release is needed. copies mailed to escrow agents, title sell property that you hold—for
• Estimated Closing Statement or companies, or directly to you. example, your boat or vehicle.
schedule of proposed disbursements The CDTFA will send you a copy of If your property is levied or seized
for both buyer and seller. a release of lien after a lien filed in and you have questions, you should
• Preliminary Title Report reflecting your name is paid in full. If you need contact the CDTFA employee who
CDTFA liens. a recorded copy, you can contact us took the action. You may also ask a
• Appraisal Report or a report of to request the release recordation CDTFA supervisor to review your
comparable properties for the information. This information may case. If you are unable to resolve the
neighborhood, with a statement of not be readily available, but if it matter with the supervisor, you may
the property’s market value. is available, we will provide it so also want to discuss the matter with
• Short sale approval letter(s) from you can obtain a recorded copy the Taxpayers’ Rights Advocate Office
lender(s), if applicable. directly from the county or the to ensure proper policies and
Secretary of State. Please contact procedures were followed.
Please allow 30 days for the CDTFA to
your local CDTFA office or collection
process your request. The documents Levying your bank account
section.
submitted must be current at the
If the CDTFA levies your bank
time of submission, and additional Withholding a lien account, the levy generally only
documents may be required. To obtain
information for the CDTFA office/unit In general, the CDTFA will withhold captures the funds on deposit at the
handling your CDTFA tax account, filing a lien if all of the following occur: time the bank receives the levy (up to
please call our Customer Service • You enter into an acceptable the amount of the levy).
Center at 1‑800‑400‑7115 (CRS:711). payment plan, The bank must hold the captured
• The plan will satisfy the amount funds you have on deposit for 10 days.
Escrow demands on CDTFA tax due within one year, This period allows you time to file for
liens • You successfully follow the terms a hardship hearing, to show that the
The Collections Support Bureau of of the plan, and funds are exempt from levy under
federal or state law, or to make other
CDTFA processes written requests for • You have not had collection
satisfactory arrangements to pay.
payoff demands on its state tax liens problems before with the CDTFA.
on real property. After 10 days, the bank must send
The CDTFA may levy your property the money plus additional interest
These requests may be submitted by
fax or by mail to: If you do not pay your amount due if it applies, to the CDTFA. Once the
or make arrangements to settle your CDTFA deposits the captured funds,
California Department of you would need to file a claim for
debt, we may levy (seize) any type
Tax and Fee Administration refund to request return of the funds.
of real or personal property that you
Collections Support Bureau To discuss your case, call the CDTFA
own or have an interest in.
PO Box 942879, MIC:55 employee whose name is shown on
Sacramento, CA 94279‑0055 Levies are different from liens. A lien is
the Notice of Levy.
Fax: 1‑916‑327‑0615 a claim used as security for the tax or fee
debt, whereas a levy actually takes the The CDTFA must release your levy if
Please allow at least two business any of the following occur:
property to satisfy the tax or fee debt.
days for the CDTFA to review and
respond to your request. The CDTFA will usually levy property • You pay the amount you owe in
only after we have sent you a Demand certified funds (cash, cashier’s
The demands for the bulk sale of a check, or money order).
for Payment and you have neglected or
business are prepared by the CDTFA • The CDTFA determines the levy
refused to pay the tax or fee.
offices. To obtain information for is creating a significant economic
the CDTFA office/unit handling Examples
hardship for you.
your CDTFA tax account, please • The CDTFA could levy property
call our Customer Service Center at that is yours but held by someone If we have mistakenly levied
1‑800‑400‑7115 (CRS:711). else—for example, your wages, your account
dividends, bank accounts,
If you paid bank charges because of
licenses, rental income, accounts
a mistake the CDTFA made when the
receivables, the cash value of your
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