8951. The board, whenever it deems it necessary to ensure
compliance with this part or any rule or regulation adopted under
this part, may require any user or vendor to deposit with it any
security that it may determine. Any security in the form of cash,
government bonds, or insured deposits in banks and savings and loan
institutions shall be held by the board in trust to be used solely in
the manner provided for by this section and Section 8956. The board
may sell the security at public sale if it becomes necessary in order
to recover any amount due under this part. Notice of the sale may be
served upon the person who deposited the security personally or by
mail in the manner prescribed for service of notice of a deficiency
determination. Upon any sale, any surplus above the amount due shall
be returned to the person who deposited the security.
8952. If any user is delinquent in the payment of any obligation
imposed under this part, or in the event a determination has been
made against such a user which remains unpaid, the board may, not
later than three years after the payment becomes delinquent, or
within 10 years after 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 their possession or under their
control any credits or other personal property belonging to the user,
or owing any debts to the user. In the case of any state officer,
department or agency, the notice shall be given to such officer,
department or agency prior to the time it presents the claim of the
delinquent taxpayer to the State Controller.
8953. 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 the earlier.
8954. All persons so notified shall forthwith after receipt of the
notice advise the board of all credits, other personal property, or
debts in their possession, under their control, or owing by them. If
such notice seeks to prevent the transfer or other disposition of a
deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice to be effective
shall state the amount, interest and penalty due from the person and
shall be delivered or mailed to the branch or office of such bank at
which such deposit is carried or at which such credits or personal
property is held. Notwithstanding any other provision, with respect
to a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice shall only be
effective with respect to an amount not in excess of two times the
amount, interest and penalty due from the person.
8955. 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 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 such transfer or disposition the State
is unable to recover the indebtedness of the person with respect to
whose obligation the notice was given.
8956. If, at the time a person ceases to be a user or vendor under
this part, the board holds security pursuant to Section 8951 in the
form of cash, government bonds, or insured deposits in banks or
savings and loan institutions, the security when applied to the
account of the taxpayer shall be deemed to be a payment on account of
any liability of the taxpayer to the board on the date the person
ceases to be a user or vendor under this part.
8957. (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 payments, credits other than payments, or other personal
property belonging to a user, vendor, or other person 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 user, vendor, or other person, or the amount of any
liability incurred by them under this part, and to transmit the
amount withheld to the board at those times as it may designate. The
notice of levy shall have the same effect as a levy pursuant to a
writ of execution except for the continuing effect of the levy, as
provided in subdivision (b).
(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 sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, the term "payments" does not
include earnings as that term is defined in subdivision (a) of
Section 706.011 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. The term "payments" does include any of
the following:
(1) Payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the user, vendor, or other
person liable for the tax.
(3) Any other payments or credits due or becoming due the user,
vendor, or other 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.
8958. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines upon receiving information from a
user or other person liable for any amount under this part that the
person's employer withheld earnings for tax as pursuant to Section
8957 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.
8951. The board, whenever it deems it necessary to ensure
compliance with this part or any rule or regulation adopted under
this part, may require any user or vendor to deposit with it any
security that it may determine. Any security in the form of cash,
government bonds, or insured deposits in banks and savings and loan
institutions shall be held by the board in trust to be used solely in
the manner provided for by this section and Section 8956. The board
may sell the security at public sale if it becomes necessary in order
to recover any amount due under this part. Notice of the sale may be
served upon the person who deposited the security personally or by
mail in the manner prescribed for service of notice of a deficiency
determination. Upon any sale, any surplus above the amount due shall
be returned to the person who deposited the security.
8952. If any user is delinquent in the payment of any obligation
imposed under this part, or in the event a determination has been
made against such a user which remains unpaid, the board may, not
later than three years after the payment becomes delinquent, or
within 10 years after 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 their possession or under their
control any credits or other personal property belonging to the user,
or owing any debts to the user. In the case of any state officer,
department or agency, the notice shall be given to such officer,
department or agency prior to the time it presents the claim of the
delinquent taxpayer to the State Controller.
8953. 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 the earlier.
8954. All persons so notified shall forthwith after receipt of the
notice advise the board of all credits, other personal property, or
debts in their possession, under their control, or owing by them. If
such notice seeks to prevent the transfer or other disposition of a
deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice to be effective
shall state the amount, interest and penalty due from the person and
shall be delivered or mailed to the branch or office of such bank at
which such deposit is carried or at which such credits or personal
property is held. Notwithstanding any other provision, with respect
to a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice shall only be
effective with respect to an amount not in excess of two times the
amount, interest and penalty due from the person.
8955. 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 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 such transfer or disposition the State
is unable to recover the indebtedness of the person with respect to
whose obligation the notice was given.
8956. If, at the time a person ceases to be a user or vendor under
this part, the board holds security pursuant to Section 8951 in the
form of cash, government bonds, or insured deposits in banks or
savings and loan institutions, the security when applied to the
account of the taxpayer shall be deemed to be a payment on account of
any liability of the taxpayer to the board on the date the person
ceases to be a user or vendor under this part.
8957. (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 payments, credits other than payments, or other personal
property belonging to a user, vendor, or other person 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 user, vendor, or other person, or the amount of any
liability incurred by them under this part, and to transmit the
amount withheld to the board at those times as it may designate. The
notice of levy shall have the same effect as a levy pursuant to a
writ of execution except for the continuing effect of the levy, as
provided in subdivision (b).
(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 sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, the term "payments" does not
include earnings as that term is defined in subdivision (a) of
Section 706.011 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. The term "payments" does include any of
the following:
(1) Payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the user, vendor, or other
person liable for the tax.
(3) Any other payments or credits due or becoming due the user,
vendor, or other 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.
8958. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines upon receiving information from a
user or other person liable for any amount under this part that the
person's employer withheld earnings for tax as pursuant to Section
8957 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.
8951. The board, whenever it deems it necessary to ensure
compliance with this part or any rule or regulation adopted under
this part, may require any user or vendor to deposit with it any
security that it may determine. Any security in the form of cash,
government bonds, or insured deposits in banks and savings and loan
institutions shall be held by the board in trust to be used solely in
the manner provided for by this section and Section 8956. The board
may sell the security at public sale if it becomes necessary in order
to recover any amount due under this part. Notice of the sale may be
served upon the person who deposited the security personally or by
mail in the manner prescribed for service of notice of a deficiency
determination. Upon any sale, any surplus above the amount due shall
be returned to the person who deposited the security.
8952. If any user is delinquent in the payment of any obligation
imposed under this part, or in the event a determination has been
made against such a user which remains unpaid, the board may, not
later than three years after the payment becomes delinquent, or
within 10 years after 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 their possession or under their
control any credits or other personal property belonging to the user,
or owing any debts to the user. In the case of any state officer,
department or agency, the notice shall be given to such officer,
department or agency prior to the time it presents the claim of the
delinquent taxpayer to the State Controller.
8953. 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 the earlier.
8954. All persons so notified shall forthwith after receipt of the
notice advise the board of all credits, other personal property, or
debts in their possession, under their control, or owing by them. If
such notice seeks to prevent the transfer or other disposition of a
deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice to be effective
shall state the amount, interest and penalty due from the person and
shall be delivered or mailed to the branch or office of such bank at
which such deposit is carried or at which such credits or personal
property is held. Notwithstanding any other provision, with respect
to a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice shall only be
effective with respect to an amount not in excess of two times the
amount, interest and penalty due from the person.
8955. 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 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 such transfer or disposition the State
is unable to recover the indebtedness of the person with respect to
whose obligation the notice was given.
8956. If, at the time a person ceases to be a user or vendor under
this part, the board holds security pursuant to Section 8951 in the
form of cash, government bonds, or insured deposits in banks or
savings and loan institutions, the security when applied to the
account of the taxpayer shall be deemed to be a payment on account of
any liability of the taxpayer to the board on the date the person
ceases to be a user or vendor under this part.
8957. (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 payments, credits other than payments, or other personal
property belonging to a user, vendor, or other person 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 user, vendor, or other person, or the amount of any
liability incurred by them under this part, and to transmit the
amount withheld to the board at those times as it may designate. The
notice of levy shall have the same effect as a levy pursuant to a
writ of execution except for the continuing effect of the levy, as
provided in subdivision (b).
(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 sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, the term "payments" does not
include earnings as that term is defined in subdivision (a) of
Section 706.011 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. The term "payments" does include any of
the following:
(1) Payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the user, vendor, or other
person liable for the tax.
(3) Any other payments or credits due or becoming due the user,
vendor, or other 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.
8958. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines upon receiving information from a
user or other person liable for any amount under this part that the
person's employer withheld earnings for tax as pursuant to Section
8957 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.
