What is the difference between a Lein and Levy?

Question

I run a small business, and am behind in employment taxes, I received a notice of lein from the EDD department for the seize and sale of all personal property. Yesterday,without any notice of a levy the EDD took every penny I had in the company account, I thought that they could only do that if they filed a levy. Were they able to do that? I am in California, and have had my bank account levyed acouple of times by IRS, but I always got a notice of levy? So how was EDD able to do so without obtaining a levy, or does a lein allow you to do this, I am very concerned, and wondering if they took the money out in error! Any help is greatly apprreciated. By the way I don't need anyone telling me to pay my bills, I know it's my fault i'm in this situation, I am just looking for strictly answers here, nothing more!

Answer 1

A lien exists as soon as EDD mails you a bill for your unpaid employment taxes.  A Notice of Lien is a document filed with your local county recorder and/or the secretary of state to give public notice that the lien exists and prevent you from disposing of most property without paying what you owe.  A levy or notice of levy is the same as a garnishment and is the actual taking or seizing of property to satisfy the lien.  Where there is a lien, a levy is sure to follow.  You bank account was levied upon because you neglected to pay the employment tax you owed.  You need to make arrangements with the tax representative at EDD who has your account to pay it under terms EDD will accept or this or worse can happen again.