Fillable Printable Information Sheet: State Tax Lien (De 631Tl)
Fillable Printable Information Sheet: State Tax Lien (De 631Tl)
Information Sheet: State Tax Lien (De 631Tl)
STATE TAX LIEN
INTRODUCTION
The Employment Development Department (EDD) is
authorized to file with the Secretary of State and record
with any county recorder a Notice of State Tax Lien
specifying the amount of contributions, interest, penalties,
and costs due to the EDD.
Section 1703 of the California Unemployment Insurance
Code provides:
(a) If any employer or other person fails to pay any
amount due to the EDD at the time that it becomes
due and payable, that amount (including penalty,
interest and costs), shall be a perfected and
enforceable tax lien.
(b) For the purposes of this section, amounts are “due
and payable” on the following dates:
(1) For amounts disclosed on a return received by
the EDD or for penalties, the date of the notice
to the taxpayer of the amount due.
(2) For any amount reestablished under the
provisions of Section 1875, the date of a
written notice of rescission.
(3) For all other amounts, the date of the
assessment is final.
NOTICE OF STATE TAX LIEN
The recording of a Notice of State Tax Lien must take
place within 10 years of the date the lien arose. The
recorded lien is valid for 10 years and may be extended in
10 year increments. The EDD’s lien is enforceable for all
obligations which exist against the owner of the property.
EFFECT OF A STATE TAX LIEN
The EDD’s tax lien is a perfected and enforceable State Tax
Lien on all property and rights to property, whether real or
personal, tangible or intangible, including all subsequent
acquired property and rights to property belonging to the
taxpayer.
The taxpayer should immediately pay the liability in full
to avoid the recording of a Notice of State Tax Lien. If the
liability cannot be paid in full, immediately contact the
EDD at the phone number indicated on the notice. In all
instances of an approved payment plan, the EDD will
record a Notice of State Tax Lien to protect the EDD’s
interest. A copy of the Notice of State Tax Lien is mailed
to the taxpayer’s address as it appears on the EDD’s
records.
The Notice of State Tax Lien states that the amount of the
unpaid tax is a lien on all real and personal property and
the rights to such property, including all subsequently-
acquired property and rights to property belonging to the
taxpayer.
A recorded Notice of State Tax Lien is a matter of public
record, and the employer’s credit rating and credit reports
may be adversely affected by a State Tax Lien. The EDD
does not directly provide credit reporting agencies with
State Tax Lien information. This information is acquired
from the counties.
Lien amounts are not adjusted after the lien is filed
and/or recorded. An amended lien will not be issued
when payments are made to reduce the liability.
HOW TO IDENTIFY EDD TAX LIENS
Other taxing agencies, such as the Internal Revenue
Service, Board of Equalization, and Franchise Tax Board,
also impose and file tax liens. The EDD tax liens can be
identified as follows:
The letter “K” followed by five digits. For example,
K12345
The letter “M” followed by six digits. For example,
M123456
The letter “G” followed by nine digits. For example,
G123456789
The letter “W” followed by nine digits. For example,
W931123456
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This information sheet is provided as a public service and is intended to provide nontechnical assistance. Every attempt has
been made to provide information that is consistent with the appropriate statutes, rules, and administrative court decisions.
Any information that is inconsistent with the law, regulations, and administrative and court decisions is not binding on
either the Employment Development Department or the taxpayer. Any information provided is not intended to be legal,
accounting, tax, investment, or other professional advice.
ESCROW INSTRUCTIONS
Generally, State Tax Liens must be paid in full with
certified funds (cash, cashier’s check, or money order),
prior to the transfer of title of any real property. A demand
for payment and the release of paid EDD liens should be
requested in writing by mailing or faxing the request to:
Employment Development Department
PO Box 826880, MIC 92G
Sacramento, CA 94280-0001
Fax Number: 916-464-2711
Please include the name, address, and phone number
of the institution requesting the demand, the employer
account number, lien certificate number, and whether the
demand should be mailed and/or faxed.
RELEASE OF LIEN
A Release of Lien is mailed to the County Recorder office
and the Secretary of State within 40 days after the
liability, including penalty and interest, has been paid in
full. The Release of Lien is not mailed directly to the
taxpayer. A copy of the Release of Lien may be obtained
from the County Recorder office. A Status of Lien Release
letter will be sent to the taxpayer if requested.
The cost of recording the Release of Lien is the
responsibility of the taxpayer and is collected by the EDD
in the same manner as the law provides for collection of
the tax.
ADDITIONAL INFORMATION
For further assistance, please contact the Taxpayer
Assistance Center at 888-745-3886, access the EDD
website at www.edd.ca.gov/payroll_taxes/, or visit the
nearest Employment Tax Office listed in the California
Employer’s Guide (DE 44) or on the EDD website at
www.edd.ca.gov/Office_Locator/.
The EDD is an equal opportunity employer/program.
Auxiliary aids and services are available upon request to
individuals with disabilities. Requests for services, aids,
and/or alternate formats need to be made by calling
888-745-3886 (voice) or TTY 800-547-9565.
DE 631TL Rev. 5 (8-15) (INTERNET) Page 2 of 2 CU
