Can delinquent EDD Payroll Taxes be levied on my personal bank account?

Question

If my only income is Social Security and Military Pension? Also I have a joint account with my daughter, can the money she deposits be seized? I started a business in 2005 and it did not work out so it has been closed since May of 2006. I just received a notice of intent to levy my personal bank account. How do I go about working out a payment plan or would it be better if I filed bankruptcy and if a BK which chapter (I have tons of other delinquent accounts such as business credit cards, $60K+judgement for a broken lease etc)? I have no assets, lost my home in foreclosure trying to keep the business running and have no real extra money to make anything but a very minimal payment. The EDD is showing that I owe just over $5,000. Help please?

The levy notice shows the account(s) of Ms. XYZ and/or Business ABC are to be levied, does that mean they can only seize accounts that are listed under BOTH Ms. XYZ AND Business ABC or all accounts with just Business ABC and NOT personal accounts held only in Ms. XYZ's name? The reason I ask is that the bank sent me the notice of the levy but stated that no funds were seized as none were available. However there are funds in Ms. XYZ's personal account which were not touched and the notice did not list any account numbers.

Answer 1

Yes, your personal accounts can be levied for business tax debts in many cases. If you were a sole proprietor, a partner, a corporate officer, or an employee responsible for payment of the taxes, your personal accounts can be seized for tax debts.

It doesn't matter what the source of the funds was, if there's money in the account, it's fair game for seizure.

Filing bankruptcy won't get you off the hook for tax debts in most cases. However it will clear a lot of other debts making it easier for you to clear your tax debt.