STATE TAX LIEN
INTRODUCTION
The Employment Development Department (EDD) is
authorized to le 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 nal.
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.
All employers who fail to le and pay liabilities timely are
subject to the ling of a Notice of State Tax Lien. This lien
is issued to protect the interest of the State of California
and is not considered involuntary collection action. The
ling of a State Tax Lien is an automatic process and
cannot be stopped unless the liability is fully paid. If the
liability cannot be paid in full, immediately contact the
EDD at the phone number indicated on the notice.
If a Notice of State Tax Lien is led, 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 led
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, California Department of Tax and Fee
Administration, and Franchise Tax Board, also impose
and le tax liens. The EDD tax liens can be identied as
follows:
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.
DE 631TL Rev. 7 (5‑19) (INTERNET) Page 1 of 2 CU
ESCROW INSTRUCTIONS ADDITIONAL INFORMATION
Generally, State Tax Liens must be paid in full with
certied 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, faxing, or emailing the
request to:
Employment Development Department
PO Box 826880, MIC 92G
Sacramento, CA 94280‑0001
Fax Number: 1‑916‑464‑2711
Email: T[email protected]
Please include the name, address, and phone number
of the institution requesting the demand, the employer
payroll tax account number, lien certicate number, and
whether the demand should be mailed and/or faxed.
RELEASE OF LIEN
A Release of Lien is mailed to the County Recorder ofce
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 ofce. 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.
For further assistance, please contact the Taxpayer
Assistance Center at 1‑888‑745‑3886, access the EDD
website at edd.ca.gov/payroll_taxes/, or visit the nearest
Employment Tax Ofce listed in the California Employer’s
Guide (DE 44) (PDF) or on the EDD website at
edd.ca.gov/Ofce_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
1‑888‑745‑3886 (voice) or TTY 1‑800‑547‑9565.
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.
DE 631TL Rev. 7 (5‑19) (INTERNET) Page 2 of 2
