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I owe the state of California back taxes to the approximate

Customer Question
tune of $20,000. I...
I owe the state of California back taxes to the approximate tune of $20,000. I was in negotiations with the Franchise Tax Board to begin making monthly payments when all of a sudden the levied by B of A bank account and took the $1,500. This happened about 5 weeks ago. If I try to open a new account with, say, a local credit union, do I have to worry about the FTB seizing that account too? Michael
Submitted: 7 years ago.Category: Tax
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8/13/2010
Tax Professional: Robin D., Senior Tax Advisor 4 replied 7 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,888
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello and thank you for using Just Answer.

You stated that you were in negotiations to begin making payments, has that arrangement been finalized and accepted by the state?

A bank account with enough funds to meet the monthly payment is needed for installment agreement with CA. If your payment request for installments has not been accepted by the franchise board then they are allowed to place a lien on any and all bank accounts that you have.

Once your installment agreement is accepted, the board generally will not attach any of your accounts unless you default on the agreement.

I sincerely XXXXX XXXXX information is helpful,

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Customer reply replied 7 years ago

Once I learned about the levy on my bank account the negotiations broke down. No formal payment agreement has been established in writing, although we had agreed on a monthly dollar amount.

 

Am I to infer from you answer that if I try to open an account with a different financial institution the FTB will automaticall find out about it and seize it again?

Tax Professional: Robin D., Senior Tax Advisor 4 replied 7 years ago

Hello again,

That was unfortunate especially since you were trying to comply.

I cannot advise that they would automatically find out about your new account, but yes, the CA Franchise Board could and would seize another account that you open.

They are also allowed to garnish your wages. If you own any real or personal property they can also place a lien on that property. You can check at your county for any liens.

I wish I could say they were not legally allowed to take tis action but that would not be correct.

 

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Customer reply replied 7 years ago

As far as garnishing my wages, our office administrator said they can't garnish my wages due to the fact that I already have alimony money coming out of every week's check and that % is at a limit that prevents further 'garnishment' per se. In terms of assets and property, I do not own any.

 

Are you aware of any way I can find a definitive answer to me underlying question: can I open an account somewhere without risking it being levied again. It is pretty tough to operate without an operable bank account from which I can pay bills, etc.

Tax Professional: Robin D., Senior Tax Advisor 4 replied 7 years ago

Hello,

CA can levy any account you open anywhere. Even if you open it in another state they can track it down. When you open an account you are required to use your social security number that would be the best tracking tool the state has.

It will just be a matter of time for them to find another account.

The California Right to Financial Privacy Act limits government from requesting and receiving customer information from financial institutions. However, the Act expressly does not prevent FTB and financial institutions from the following:

 

FTB may request and financial institutions may respond to inquiries about a person's bank account and identifying numbers.

Financial institutions may disclose the amount of its security interest in a specified asset of a customer.

Financial institutions may disclose financial records in connection with the filing or auditing of tax or information returns required to be filed by the financial institution.

 

There is no guarantee that they will not seize your new account also. As stated above banks are required to tell the state about accounts held by certain taxpayers if the state asks.

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Customer reply replied 7 years ago
What if I use a different ss#?
Tax Professional: Robin D., Senior Tax Advisor 4 replied 7 years ago
US citizens are generally only issued one SS#. If you applied for a new number that would be reported to the IRS and the state.
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