The IMSS can garnish your bank accounts! Here's how to avoid it

It is no news that by owning a business and becoming an "employer", we acquire a series of responsibilities before certain institutions such as SAT, Infonavit and IMSS.

This time we will focus on the Mexican Social Security Institute (IMSS) because, although it may seem hard to believe, not complying with your employer's obligations to this institution can have consequences, including the seizure of your bank accounts.

But, can the IMSS seize bank accounts?

Both the aforementioned Tax Administration Service (SAT), the National Workers' Housing Fund Institute (INFONAVIT) and the IMSS are empowered to take action if they detect any non-compliance with their obligations by the employers. 

And as we have already mentioned, the seizure of bank accounts is one of them.

As for the IMSS, the precautionary seizure of employer's assets is contemplated in nothing more and nothing less than the Federal Tax Code.

If you are interested in consulting it, you can do so on the portal of the Chamber of Deputies.

Of course, this applies only and exclusively when non-compliance is detected.

This means that when the IMSS detects non-compliance, it can seize the employer's bank accounts up to the amount of the tax debt.

How can you avoid an IMSS garnishment?

The IMSS offers the possibility of regularizing the debts, prior to the seizure action.

In case of having such debts, this agency may authorize the payment of the tax credits in up to 48 installments.

In order to enter this scheme, the IMSS requires the following documents:

• Employer identification card.
• Valid official identification of the employer, obligor or legal representative.
• Power of attorney of the legal representative, granting the power to carry out procedures before public entities.
• Proof of payment corresponding to 20% of the total debt.
• Free writing requesting authorization for the payment in installments of tax credits.

What to do if the IMSS garnishment arrives?

If your bank accounts are seized due to employer's contributions to the IMSS, there is a procedure to find out the situation, the reason for the seizure and seek a solution:

1. The first thing to do is to ask the banking institution for information on who and why the account is being garnished.
2. Once the IMSS is notified, it is necessary to go to the IMSS offices to submit the corresponding information.

Once this is done, there are two ways:

• If it is proven that the debt is justified, it is possible to request the IMSS to prepare an agreement.
• But if it is not appropriate, and the necessary evidence is available, an extension must be requested for a clarification or conciliation with the IMSS.

In these cases, the auditing authority, in this case the IMSS, must always respect the right of the person affected by the seizure of accounts, by means of official documents that clarify the reason for its actions.

Is it possible to recover what has been seized by the IMSS?

Yes, it is possible! 

Returning the assets seized by the IMSS is part of the Administrative Execution Procedure (PAE), of course, as long as you have made the payment corresponding to the outstanding debt.

To recover the seized goods, the employer or the person in charge must go to the Collection Office in order to recover the materials or money lost.

 In addition, you must submit the application for the return of seized assets, which must include the following information:

• Name
• Phone
• Company name
• Tax domicile
• Federal Taxpayers Registry
• Employer Registration Code

If the return of the seized goods is authorized, the institute will deliver a document called "Authorization for delivery of goods COFI-21", which must be signed by those responsible for the area. 

To prove this, the following documents must be submitted: 

• Employer natural person: INE or Passport, Professional License, or Military Service Card.
• Employer legal entity: INE, Articles of Incorporation, Professional License, or Military Service Card.
• Power of attorney with verification of signatures before the tax authority, in accordance with article 19 of the Federal Fiscal Code (CFF).

In the event that authorization is not obtained from the authority, the seized assets will not be granted.

So now you know, the best thing to do is to be up to date with your employer's payments to the IMSS, SAT and other agencies. It is always better to avoid exhausting procedures, bureaucratic issues and, above all, waste of time. 

See you next time!