12-21.205. Departmental Levy on Frozen Assets; Procedures

(1)(a) If the delinquent taxpayer does not, within 21 days after the date of receipt of the Notice of Intent to Levy, pay the delinquent taxes, penalties, interest, administrative fees, and costs of collection owed as referenced in the Notice of Intent to Levy, or bring lawful action to contest the Notice of Intent to Levy, the Department will levy upon any assets controlled or possessed by the custodians.

(b) If the delinquent taxpayer, within 21 days after the date of receipt of the Notice of Intent to Levy, files a lawful action contesting this intended levy pursuant to Chapter 120, F.S., or in circuit court, the Department will issue a Notice of Contested Intent to Levy to the custodian. The Department will not proceed to levy on such frozen assets until there is a final resolution in its favor.

(c) If the delinquent taxpayer contests the intended levy, the Notice of Freeze will remain in effect until there is a final resolution.

(2) The following procedures govern the Department’s issuance of a Notice of Levy:

(a) The Department will not issue a Notice of Levy until at least thirty days after the Department has issued a Notice of Intent to Levy to the delinquent taxpayer.

(b) A Notice of Levy will be delivered by registered mail to those custodians who are currently subject to a Notice of Freeze. The Notice of Levy will designate the specific assets to be paid or transferred to the Department, and the manner in which such transfer should occur. Payments to the Department must be made by certified or cashier’s check, made payable in U.S. funds to the Florida Department of Revenue.

(c) A Notice of Levy will apply:

1. To any credits, other personal property, or debts of the delinquent taxpayer held by a custodian as of the date the notice is received by such custodian that are not, at the time of the initial Notice of Freeze, subject to an attachment, garnishment, or execution issued through a judicial process; and,

2. To any credits, other personal property, or debts of the delinquent taxpayer of which the custodian subsequently acquires control or possession during the time period prescribed by the Notice of Freeze.

(3)(a) The assets of any delinquent taxpayer that have been garnished by the Department are subject to levy and sale in the same manner as provided in Section 213.69, F.S., and this rule chapter.

(b) The Department will return to the delinquent taxpayer any surplus sale proceeds in its possession remaining after all taxes, fees, surcharges, penalties, interest, administrative fees, and costs of collection have been deducted from such sale.

(4) The Department must bring an action in circuit court to obtain an order compelling compliance with any notice issued under the authority of Section 213.67, F.S.

Rulemaking Authority 213.06(1) FS. Law Implemented 213.67, 213.731, 443.1316 FS. History–New 6-16-93, Amended 3-31-99, 3-12-14.