Legal Question in Tax Law in California

lien vs. liability

The California Franchise Tax Board released a tax lien because the statute of limitations had run, they have already filed the release. They now claim the release of the lien does not constitute a release of the tax liability. Does this mean they still have the right to levy, i.e. wage, bank acct, garnishment etc.? Why doesn't the release of the lien absolve the liability of the tax debt?


Asked on 5/12/99, 1:15 pm

2 Answers from Attorneys
WILLIAM BRANDWEIN WILLIAM A. BRANDWEIN, A PROFESSIONAL LAW CORP.

Re: lien vs. liability

WHILE THE LIABILITY STILL IS THERE, IT MAY BE UNENFORCEABLE WHICH MEANS THEY CANNOT LEVY ON WAGES, ETC. THIS ASSUMES THEY RELEASED THE LIEN BECAUSE THE ST. OF LIM. HAS RUN.

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Answered on 5/19/99, 5:49 pm
Leslie Beckhart Law Offices of Leslie Kent Beckhart

Re: lien vs. liability

Technically, the fact that the statute of limitations has run only means that all of the FTB's remedies to retrieve the money are unenforceable (i.e., unavailable), not that the liability ever disappears. I would suggest you get a written response from the FTB (if you haven't already) as to why the liability still exists; this technical reason may be their answer, or there may be some other reason.

(This statement does not constitute my representation of you, nor is it an attorney-client communication.)

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Answered on 5/18/99, 9:09 pm


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