12-21.203. Notification to Custodians; Custodial Responsibilities

(1) To initiate a garnishment procedure, the Department will send a Notice of Freeze by registered mail, personal service, facsimile, electronic data interchange, use of the Internet, or by other electronic means to custodians exercising control or possession of a delinquent taxpayer’s assets.

(2) The Notice of Freeze will state the Department’s authority to initiate the garnishment procedure; specifically identify the delinquent taxpayer subject to garnishment; indicate the dates during which the freeze of assets is effective; specify the amount of the delinquent taxpayer’s assets that must be frozen by the custodian; and describe the custodian’s responsibilities pursuant to section 213.67, F.S., and this rule.

(3) The Notice of Freeze informs the custodian of the following:

(a) The custodian is prohibited from transferring or otherwise disposing of the specified partial amount or the entire amount of the delinquent taxpayer’s assets in the custodian’s control or possession at the time of receipt of the Notice of Freeze, or any additional assets of which the custodian subsequently acquires control or possession, in any manner whatsoever, during the time period prescribed by the notice, unless written consent is given by the Department. The Department will notify each custodian that assets in excess of the amount stipulated in the notice, wherever held, are not subject to the freeze.

(b) The Notice of Freeze is effective as of the date of its receipt, and remains in effect until the custodian receives a subsequent notice from the Department with further instructions, or until sixty (60) days have elapsed from the date of its receipt. If the delinquent taxpayer contests the intended levy in circuit court or under chapter 120, F.S., within the time period specified under section 213.67, F.S., the Department will notify the custodian that the Notice of Freeze will remain in effect until a final resolution is achieved.

(c) If, during the time period prescribed by this notice, a custodian makes any transfer or disposition of the assets required to be withheld, the custodian will be liable for any indebtedness owed to the Department by the delinquent taxpayer to the extent of the value of the assets, if the state is unable to recover the indebtedness solely by reason of the transfer or disposition.

(4) The Notice of Freeze informs the custodian that each custodian who receives a Notice of Freeze issued pursuant to this rule must:

(a) Inform the Department in writing, within 5 days of the receipt of the notice, of those specific assets and their value attributable to the delinquent taxpayer that the custodian controls, possesses, or is owed;

(b) Inform the Department in writing, within 5 days after coming into subsequent possession or control of assets attributable to the delinquent taxpayer; and,

(c) Comply with the statutory prohibition against disposing, transferring, or releasing the amount of the delinquent taxpayer’s assets that the Department specified in the Notice of Freeze or that subsequently come into possession or control of the custodian.

(5) Any financial institution receiving a Notice of Freeze issued pursuant to section 213.67, F.S., and this rule will maintain a right of set-off for any transaction involving a debit card occurring on or before the date of receipt of such notice.

(6) If, during the time period prescribed by this notice, the delinquent taxpayer satisfies the delinquent liability, the Department will issue a Notice of Release. Upon receipt of the Notice of Release, the custodian is no longer prohibited from transferring, returning, or disposing of any assets owned, controlled by, or owed to the taxpayer that are in the custodian’s possession or control.

(7) The Department will record a warrant prior to initiating a garnishment procedure pursuant to this rule.

Rulemaking Authority 213.06(1) FS. Law Implemented 206.18(4), 213.67, 443.1316 FS. History–New 6-16-93, Amended 3-31-99, 6-28-00, 3-12-14, 4-16-18.