When is the best time to issue a Warrant of Garnishment and/or Distraint and Levy - facebook.com/Kataxpayer

Warrant of Garnishment and/or Distraint and Levy
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In the case of Solid-One Mills, Phils., Inc. vs. Commissioner of Internal Revenue, CTA Case No. 8507, May 29, 2014, it was ruled that
the taxpayer received both the FLD and the FAN on June 8, 2007. As it was not established when the FLD and FAN were released, mailed or sent by the BIR to the taxpayer, the date of receipt by the taxpayer should be regarded as the date when the FLD and the FAN were released, mailed or sent to the taxpayer. Since the taxpayer received the FLD and the FAN on June 8, 2007, the BIR had until June 8, 2012 within which to collect he deficiency taxes.

Although the Notice of Tax Lien, Warrant of Distraint and/or Levy and Warrants of Garnishment were issued by the BIR on June 7, 2012, or one day before the expiration of the period for collection on June 8, 2012, the Notice of Tax Lien was served on the Register of Deeds on June 14, 2012 and the Warrants of Garnishment were received by the banks on June 15, 2012 and June 18, 2012. Distraint and levy proceedings did not validly begin or commence with the mere
issuance of the Warrant of Distraint and/or Levy. The Warrant of Distraint and/or Levy must be served upon the taxpayer within the prescriptive period to collect, in order to suspend the running of the prescriptive period for collection of deficiency taxes. Since the Warrant of Distraint and/or Levy was served on taxpayer only on June 14, 2012 or six days beyond the expiration of the five-year period, the government lost its right o collect he assessed deficiency taxes and penalties.

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