SB3617 EngrossedLRB103 34188 HLH 64011 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-430 as follows:
 
7    (20 ILCS 2505/2505-430 new)
8    Sec. 2505-430. Financial institution data matching.
9    (a) Definitions. As used in this Section:
10    "Account" means a demand deposit account, checking or
11negotiable withdrawal order account, savings account, time
12deposit account, or money market mutual fund account.
13    "Financial institution" means:
14        (1) a depository institution, which is any bank or
15    saving association;
16        (2) an insured depository institution, which is any
17    bank or saving institution the deposits of which are
18    insured pursuant to the Federal Deposit Insurance Act, or
19    any uninsured branch or agency of a foreign bank or a
20    commercial lending company owned or controlled by a
21    foreign bank;
22        (3) a federal depository institution, which is any
23    national bank, any federal savings association, or any

 

 

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1    federal branch;
2        (4) a state depository institution, which is any state
3    bank, any state savings association, or any insured branch
4    that is not a federal branch;
5        (5) a federal credit union, which is a cooperative
6    association organized in accordance with the provisions of
7    the Federal Credit Union Act;
8        (6) a state-chartered credit union that is organized
9    and operated according to the laws of this or any other
10    state, which laws provide for the organization of credit
11    unions similar in principle and objectives to federal
12    credit unions; and
13        (7) any benefit association, insurance company, safe
14    deposit company, money market mutual fund, or similar
15    entity authorized to do business in this State.
16    "Financial record" has the meaning given to that term in
17Section 3401 of the federal Right to Financial Privacy Act of
181978.
19    (b) The Department may design and implement a data match
20system pursuant to which the Department and financial
21institutions doing business in this State may enter into
22agreements for the purpose of identifying accounts of
23taxpayers who are delinquent in the payment of a tax collected
24by the Department. No financial institution shall be required
25to enter into any such agreement with the Department. Nothing
26in this Section shall be interpreted as requiring a financial

 

 

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1institution to enter into an agreement with the Department or
2as requiring a financial institution to change its current
3practice of cooperating with the Department's requests on a
4case-by-case basis.
5    Any agreement entered into with a financial institution
6under this Section shall provide that the financial
7institution shall compare the data of account holders, owners,
8or customers who maintain one or more accounts at the
9financial institution with data of individuals and business
10entities who are identified by the Department as delinquent
11taxpayers and whose name, record address, and social security
12number or tax identification number are provided by the
13Department to the financial institution.
14    If the financial institution or the Department determines
15that the name and social security number or tax identification
16number of an individual or business entity identified by the
17Department as a delinquent taxpayer matches the name and
18social security number or tax identification number of an
19account holder, owner, or customer who maintains one or more
20accounts at the financial institution, then the financial
21institution shall report the individual's or business entity's
22name and either social security number or tax identification
23number to the Department for each calendar quarter in which
24the Department notifies the financial institution that the
25individual or business entity is a delinquent taxpayer.
26    (c) The reporting requirements of subsection (b) of this

 

 

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1Section apply to personal (both individual and joint) and
2business accounts, including sole proprietorship accounts. In
3the case of a joint account, the account holder or owner shall
4be deemed to be the primary account holder or owner
5established by the financial institution in accordance with
6the financial institution's internal procedures.
7    (d) The Department shall make a reasonable effort to
8accommodate those financial institutions on which the
9requirements of this Section would impose a hardship. In the
10case of a non-automated financial institution, a paper copy
11including either social security numbers or tax identification
12numbers is an acceptable format. In order to allow for data
13processing implementation, no agreement shall become effective
14earlier than 90 days after its execution.
15    (e) All information provided by a financial institution
16under this Section is confidential and may be used only for the
17purpose of enforcing payment of delinquent taxes.
18    (f) A financial institution that provides information
19under this Section shall not be liable to any account holder,
20owner, or other person in any civil, criminal, or
21administrative action for any of the following:
22        (1) disclosing the required information to the
23    Department, any other provisions of law notwithstanding;
24        (2) holding, encumbering, or surrendering any of an
25    individual's accounts as defined in subsection (a) of this
26    Section in response to a lien or order to withhold and

 

 

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1    deliver issued by the Department; or
2        (3) any other action taken or omission made in good
3    faith to comply with this Section, including individual or
4    mechanical errors, provided that the action or omission
5    does not constitute gross negligence or willful
6    misconduct.
7    (g) Each agreement under this Section shall provide that
8the Department shall pay to the financial institution
9providing or comparing the data a reasonable fee not to exceed
10the institution's actual cost of providing the data or
11performing the comparison.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.