Taxation

Ca. Tax Lawyer March 2021, Volume 30, Number 1

Modification of California Unemployment Insurance Code Section 1755(a) to Provide a Minimum Holding Period for Surrender of Property Subject to Levy from Financial Institutions

By Rami Khoury, Joyce Cheng and Alexander Schindler1

The authors would like to thank Robert Schriebman and Patrick McGinnis for their helpful comments.2

EXECUTIVE SUMMARY

The current legislation under California Unemployment Insurance Code ("CUIC") § 1755 governs bank levies by the Employment Development Department ("EDD"). CUIC § 1755(a) explains the levy process, applicable statutory periods, and identifies a response time of "within five days of service of the levy." This means that once a levy is served upon a financial institution, the institution must remit the levied funds to the EDD "within five days of service of the levy" to avoid being deemed liable for the tax.

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