Calif. Franchise Tax Board Info
Earnings Withholdings Orders ("EWO")
Definitions: CCP = Calif. Code of Civil Procedures, GC = Gov't Code RT = Revenue & Tax Code
Per CCP 706.074(a): "The state may itself issue a withholding order for taxes under this section
to collect a state tax liability."
Per CCP 706.070(b): ' "State tax liability" means an amount for which the state has a state tax lien as defined
in Section 7162 of the Government Code excluding a state tax lien created pursuant to the Fish
and Game Code.'
Per Government Code 7162: ' "State tax lien" means a lien created pursuant to Section 8048 of the Fish and
Game Code, Section 3423 or 3772 of the Public Resources Code, Section 6757, 7872,
8996, 16063, 18881, 26161, 30322, 32363, or 38532 of the Revenue and Taxation Code, or
Section 1703 of the Unemployment Insurance Code. '
Which Section defines the tax lien that applies to your EWO?:
____Section 8048 of the Fish and Game Code
____Section 3423 or 3772 of the Public Resources Code
____Section 6757 of Revenue & Taxation Code (Sales & Use Tax)
____Section 7872 of Revenue & Taxation Code (Motor Vehicle Fuel Tax)
____Section 8996 of Revenue & Taxation Code (Use Fuel Tax)
____Section 16063 of Revenue & Taxation Code (Gift Tax -repealed6/8/82)
____Section 18881 of Revenue & Taxation Code (Voluntary Contributions -repealed Stats1977 c481, p1580 #45)
(Notes: see now 19221 instead of 18881? - per West's)
____Section 26161 of Revenue & Tax Code (Bank & Corp Law -repealed Stats1993 c31 #60 [SB3])
(Notes: see now 19221 instead of 26161? - per West's)
____Section 30322 of Revenue & Taxation Code (Cigarette Tax)
____Section 38532 of Revenue & Taxation Code (Timber Yield Tax)
____Section 1703 of the Unemployment Insurance Code.
Apparently, they are enforcing RT18881: Voluntary Contributions, by using GC7172 and RT19221:
Note: following GC7172 as a note in West's:
"Legislative Committee Comment - Assembly: 1980 Addition:
Section 7172 continues the substance of provisions formerly found in
subdivisions (a) and (e) of the following sections:
Section 8048 of the Fish and Game Code, Section 3423 or 3772 of the
Public Resources Code, Section 6757, 7872, 8996, 16063, 18881, 26161,
30322, 32363, or 38532 of the Revenue and Taxation Code, or
Section 1703 of the Unemployment Insurance Code. The provisions
that determine when the liability is 'due and payable' have been
retained in these 12 sections. For the purpose of subdivision (a),
the date of creation of a state tax lien is the date that the liability
is 'due and payable' under these 12 sections. See Section 7162.
Section 7172 also supersedes provisions formerly found in the third
and foruth sentences of Section 38532 of the Revenue and Taxation Code.
For an exception to Section 7172, see Revenue and Taxation Code
Derivation: Revenue and Taxation Code former #18883,
added by Stats.1943 c645, #108, Stats.1957 c542 #18.
Stats 1935 c 329 #28: Stats.1939 c915 #20;
Stats.1940, 1st Ex. Sess, c36 #1; Stats 1957, c542 #18.
If none of the above apply to you: no EWO is legal
Read the: Code of Civil Procedures, Gov't Codes, and Revenue & Taxation Codes
If they file Notice of Proposed Lien, fight them with ammo from
If you didn't fight the lien properly, they still can't use that
lien for a CCP 706.074 EWO.
If they do, request a hearing and demand discovery in writing before the hearing.
Refuse to accept a hearing on "Hardship" (cf 706.051 & .100k = Exemption for Hardship does not apply to EWO) Force a full hearing.
Do Discovery on which "Tax Lien" per G.C. 7162 they are using.706.100)(Note: 706
If you don't get your discovery, because you didn't do it right, you can still
do an appeal to the State Board of Equalization. (the Writ of Mandate per CCP 706.075 can only be on the amount).
(CCP 706.075: "Judicial review of the determination made pursuant to this subdivision by the state may be had only if a
petition for a writ of mandate pursuant to Section 1094.5 is filed within 90 days from the
date that written notice of the state's determination was delivered or mailed to the
Please Note: Legally, they will argue that you cannot argue the Lien or the Tax Liability in Court, per .706.082. Note that .706.071 provides an exception to this if they don't follow procedure.