Fla. Admin. Code Ann. R. 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.
Notes
Rulemaking Authority 213.06(1) FS. Law Implemented 206.18(4), 213.67, 443.1316 FS.
New 6-16-93, Amended 3-31-99, 6-28-00, 3-12-14, 4-16-18.
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