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| Public Act 103-1027 | ||||
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AN ACT concerning revenue. | ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly: | ||||
Section 5. The Department of Revenue Law of the Civil | ||||
Administrative Code of Illinois is amended by adding Section | ||||
2505-430 as follows: | ||||
(20 ILCS 2505/2505-430 new) | ||||
Sec. 2505-430. Financial institution data matching. | ||||
(a) Definitions. As used in this Section: | ||||
"Account" means a demand deposit account, checking or | ||||
negotiable withdrawal order account, savings account, time | ||||
deposit account, or money market mutual fund account. | ||||
"Financial institution" means: | ||||
(1) a depository institution, which is any bank or | ||||
saving association; | ||||
(2) an insured depository institution, which is any | ||||
bank or saving institution the deposits of which are | ||||
insured pursuant to the Federal Deposit Insurance Act, or | ||||
any uninsured branch or agency of a foreign bank or a | ||||
commercial lending company owned or controlled by a | ||||
foreign bank; | ||||
(3) a federal depository institution, which is any | ||||
national bank, any federal savings association, or any | ||||
federal branch; | ||
(4) a state depository institution, which is any state | ||
bank, any state savings association, or any insured branch | ||
that is not a federal branch; | ||
(5) a federal credit union, which is a cooperative | ||
association organized in accordance with the provisions of | ||
the Federal Credit Union Act; | ||
(6) a state-chartered credit union that is organized | ||
and operated according to the laws of this or any other | ||
state, which laws provide for the organization of credit | ||
unions similar in principle and objectives to federal | ||
credit unions; and | ||
(7) any benefit association, insurance company, safe | ||
deposit company, money market mutual fund, or similar | ||
entity authorized to do business in this State. | ||
"Financial record" has the meaning given to that term in | ||
Section 3401 of the federal Right to Financial Privacy Act of | ||
1978. | ||
(b) The Department may design and implement a data match | ||
system pursuant to which the Department and financial | ||
institutions doing business in this State may enter into | ||
agreements for the purpose of identifying accounts of | ||
taxpayers who are delinquent in the payment of a tax collected | ||
by the Department. No financial institution shall be required | ||
to enter into any such agreement with the Department. Nothing | ||
in this Section shall be interpreted as requiring a financial | ||
institution to enter into an agreement with the Department or | ||
as requiring a financial institution to change its current | ||
practice of cooperating with the Department's requests on a | ||
case-by-case basis. | ||
Any agreement entered into with a financial institution | ||
under this Section shall provide that the financial | ||
institution shall compare the data of account holders, owners, | ||
or customers who maintain one or more accounts at the | ||
financial institution with data of individuals and business | ||
entities who are identified by the Department as delinquent | ||
taxpayers and whose name, record address, and social security | ||
number or tax identification number are provided by the | ||
Department to the financial institution. | ||
If the financial institution or the Department determines | ||
that the name and social security number or tax identification | ||
number of an individual or business entity identified by the | ||
Department as a delinquent taxpayer matches the name and | ||
social security number or tax identification number of an | ||
account holder, owner, or customer who maintains one or more | ||
accounts at the financial institution, then the financial | ||
institution shall report the individual's or business entity's | ||
name and either social security number or tax identification | ||
number to the Department for each calendar quarter in which | ||
the Department notifies the financial institution that the | ||
individual or business entity is a delinquent taxpayer. | ||
(c) The reporting requirements of subsection (b) of this | ||
Section apply to personal (both individual and joint) and | ||
business accounts, including sole proprietorship accounts. In | ||
the case of a joint account, the account holder or owner shall | ||
be deemed to be the primary account holder or owner | ||
established by the financial institution in accordance with | ||
the financial institution's internal procedures. | ||
(d) The Department shall make a reasonable effort to | ||
accommodate those financial institutions on which the | ||
requirements of this Section would impose a hardship. In the | ||
case of a non-automated financial institution, a paper copy | ||
including either social security numbers or tax identification | ||
numbers is an acceptable format. In order to allow for data | ||
processing implementation, no agreement shall become effective | ||
earlier than 90 days after its execution. | ||
(e) All information provided by a financial institution | ||
under this Section is confidential and may be used only for the | ||
purpose of enforcing payment of delinquent taxes. | ||
(f) A financial institution that provides information | ||
under this Section shall not be liable to any account holder, | ||
owner, or other person in any civil, criminal, or | ||
administrative action for any of the following: | ||
(1) disclosing the required information to the | ||
Department, any other provisions of law notwithstanding; | ||
(2) holding, encumbering, or surrendering any of an | ||
individual's accounts as defined in subsection (a) of this | ||
Section in response to a lien or order to withhold and | ||
deliver issued by the Department; or | ||
(3) any other action taken or omission made in good | ||
faith to comply with this Section, including individual or | ||
mechanical errors, provided that the action or omission | ||
does not constitute gross negligence or willful | ||
misconduct. | ||
(g) Each agreement under this Section shall provide that | ||
the Department shall pay to the financial institution | ||
providing or comparing the data a reasonable fee not to exceed | ||
the institution's actual cost of providing the data or | ||
performing the comparison. | ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||