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Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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EDD leved my bank account for payroll 3rd and 4th QTRS 1988. Looking

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EDD leved my bank account for payroll 3rd and 4th QTRS 1988.
Looking for statute of limitations for this.
Iam the employer at this time 25yrs ago.
Hello and welcome to JustAnswer.

I'm sorry to hear about your situation and hope I can help.

My goal is to provide you with excellent service today.

Wow, it is definitely strange that EDD is levying your bank account for payroll from 25 years ago.

You have two statute of limitations to challenge. The first is the tax lien itself and the second is the notice of levy on your bank account.

Tax lien:

The EDD's judgment (tax lien) against you only lasts for 10 years, unless the EDD files for an extension of the tax lien, which must be done prior to the expiration of the 10 years. As long as the extensions are filed, however, the judgment itself does not expire, so, if the appropriate paperwork was filed the EDD can still levy your bank account for a 25 year old debt. (Chapter 7)

This is from Government Code Section GC §7172(c). To prevent a recorded or filed Notice of State Tax Lien from expiring and to remain within the statute of limitations, a Notice of Extension of State Tax Lien must be recorded with the county recorder or filed with the SOS
within ten years from the recording or filing date.

The only provision other than failure to file extensions that limits the statute of limitations for collections on a judgment is California Constitution Article 13, §30, which provides that every tax shall
be conclusively presumed to have been paid after 30 years from
the time it became a lien unless the property subject to the lien
has been sold in the manner provided by the Legislature for the
payment of the tax. (Chapter 7)

Notice of Levy:

As far the notice of levy goes, in order to be valid it needs to meet one of the following criteria:

UIC §1755 directs that the NOL be served in person or by
certified mail:

• Not later than three years after the payment of any
contributions, penalties, or interest became delinquent. Only
during this period is a recorded Notice of State Tax Lien not

• Within ten years from the recording of a judgment or the filing
of a Notice of State Tax Lien (Chapter 13)

If the notice of levy was not served on you within 10 years from the recording of a judgment or a notice of the state tax lien, then it would also be past the statute of limitations.

So, if the EDD has failed to follow either statute of limitations set out above, you would be successful in challenging the levy and preventing EDD from collecting the money for this 25 year old payroll debt.

I hope the above information is helpful. Since my goal is to provide you with the best service today, please don't hesitate to ask me any follow up questions or request any additional information.

If you don't have any, please remember to rate my answer positively so I get credit for my work!

Thanks and best of luck!
Customer: replied 4 years ago.

They did not record a lien, I only refer to this part to see there longest limitation.

The only action they took was the levy.

They did not send any notices ever. They just took the money.

Chapter 3 Case Management, States case workloads are to be delt with in a timely manner.

If you never received any notice of the levy then it is invalid and you would be successful in getting the money back that they took if you challenge it in court.

As it states above, a notice of levy needs to be filed within 10 years of the recording of the judgment or it is invalid, and needs to be filed BEFORE any money is taken from your account. You need to be served with this notice either by certified mail or in person.

If you never received any notice then the levy is definitely invalid, and you should appeal EDD taking the money from your accounts.
Joseph and other California Employment Law Specialists are ready to help you