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1 | | AN ACT concerning revenue. |
2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly: |
4 | | Section 5. The Department of Revenue Law of the Civil |
5 | | Administrative Code of Illinois is amended by adding Section |
6 | | 2505-430 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 |
11 | | negotiable withdrawal order account, savings account, time |
12 | | deposit 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 |
17 | | Section 3401 of the federal Right to Financial Privacy Act of |
18 | | 1978. |
19 | | (b) The Department may design and implement a data match |
20 | | system pursuant to which the Department and financial |
21 | | institutions doing business in this State may enter into |
22 | | agreements for the purpose of identifying accounts of |
23 | | taxpayers who are delinquent in the payment of a tax collected |
24 | | by the Department. No financial institution shall be required |
25 | | to enter into any such agreement with the Department. Nothing |
26 | | in this Section shall be interpreted as requiring a financial |
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1 | | institution to enter into an agreement with the Department or |
2 | | as requiring a financial institution to change its current |
3 | | practice of cooperating with the Department's requests on a |
4 | | case-by-case basis. |
5 | | Any agreement entered into with a financial institution |
6 | | under this Section shall provide that the financial |
7 | | institution shall compare the data of account holders, owners, |
8 | | or customers who maintain one or more accounts at the |
9 | | financial institution with data of individuals and business |
10 | | entities who are identified by the Department as delinquent |
11 | | taxpayers and whose name, record address, and social security |
12 | | number or tax identification number are provided by the |
13 | | Department to the financial institution. |
14 | | If the financial institution or the Department determines |
15 | | that the name and social security number or tax identification |
16 | | number of an individual or business entity identified by the |
17 | | Department as a delinquent taxpayer matches the name and |
18 | | social security number or tax identification number of an |
19 | | account holder, owner, or customer who maintains one or more |
20 | | accounts at the financial institution, then the financial |
21 | | institution shall report the individual's or business entity's |
22 | | name and either social security number or tax identification |
23 | | number to the Department for each calendar quarter in which |
24 | | the Department notifies the financial institution that the |
25 | | individual or business entity is a delinquent taxpayer. |
26 | | (c) The reporting requirements of subsection (b) of this |
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1 | | Section apply to personal (both individual and joint) and |
2 | | business accounts, including sole proprietorship accounts. In |
3 | | the case of a joint account, the account holder or owner shall |
4 | | be deemed to be the primary account holder or owner |
5 | | established by the financial institution in accordance with |
6 | | the financial institution's internal procedures. |
7 | | (d) The Department shall make a reasonable effort to |
8 | | accommodate those financial institutions on which the |
9 | | requirements of this Section would impose a hardship. In the |
10 | | case of a non-automated financial institution, a paper copy |
11 | | including either social security numbers or tax identification |
12 | | numbers is an acceptable format. In order to allow for data |
13 | | processing implementation, no agreement shall become effective |
14 | | earlier than 90 days after its execution. |
15 | | (e) All information provided by a financial institution |
16 | | under this Section is confidential and may be used only for the |
17 | | purpose of enforcing payment of delinquent taxes. |
18 | | (f) A financial institution that provides information |
19 | | under this Section shall not be liable to any account holder, |
20 | | owner, or other person in any civil, criminal, or |
21 | | administrative 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 |
8 | | the Department shall pay to the financial institution |
9 | | providing or comparing the data a reasonable fee not to exceed |
10 | | the institution's actual cost of providing the data or |
11 | | performing the comparison. |
12 | | Section 99. Effective date. This Act takes effect upon |
13 | | becoming law. |