103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3617

 

Introduced 2/9/2024, by Sen. Sara Feigenholtz

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-430 new

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue may design and implement a data match system pursuant to which the Department of Revenue shall enter into agreements with financial institutions doing business in this State for the purpose of identifying accounts of delinquent taxpayers. Provides that the agreements shall provide that (i) the financial institution shall compare 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 for whom the Department has provided the name, record address, and social security number or tax identification number or (ii) the financial institution shall provide to the Department the social security numbers or tax identification numbers of the account holders, owners, or customers who maintain one or more accounts at the financial institution, and the Department shall compare that data with data of individuals and business entities who are identified by the Department as delinquent taxpayers. Effective immediately.


LRB103 34188 HLH 64011 b

 

 

A BILL FOR

 

SB3617LRB103 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 shall enter into
21agreements with financial institutions doing business in this
22State for the purpose of identifying accounts of taxpayers who
23are delinquent in the payment of a tax collected by the
24Department.
25    Every agreement entered into with a financial institution
26under this Section shall provide, at the option of the

 

 

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1financial institution, either (i) that the financial
2institution shall compare the data of account holders, owners,
3or customers who maintain one or more accounts at the
4financial institution with data of individuals and business
5entities who are identified by the Department as delinquent
6taxpayers and whose name, record address, and social security
7number or tax identification number are provided by the
8Department to the financial institution or (ii) that the
9financial institution shall provide to the Department the
10social security numbers or tax identification numbers of the
11account holders, owners, or customers who maintain one or more
12accounts at the financial institution, and the Department
13shall compare that data with data of individuals and business
14entities who are identified by the Department as delinquent
15taxpayers.
16    If the financial institution or the Department determines
17that the name and social security number or tax identification
18number of an individual or business entity identified by the
19Department as a delinquent taxpayer matches the name and
20social security number or tax identification number of an
21account holder, owner, or customer who maintains one or more
22accounts at the financial institution, then the financial
23institution shall report the individual's or business entity's
24name and either social security number or tax identification
25number to the Department for each calendar quarter in which
26the Department notifies the financial institution that the

 

 

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1individual or business entity is a delinquent taxpayer.
2    (c) The reporting requirements of subsection (b) of this
3Section apply to personal (both individual and joint) and
4business accounts, including sole proprietorship accounts. In
5the case of a joint account, the account holder or owner shall
6be deemed to be the primary account holder or owner
7established by the financial institution in accordance with
8federal 1099 reporting requirements.
9    (d) The Department shall make a reasonable effort to
10accommodate those financial institutions on which the
11requirements of this Section would impose a hardship. In the
12case of a non-automated financial institution, a paper copy
13including either social security numbers or tax identification
14numbers is an acceptable format. In order to allow for data
15processing implementation, no agreement shall become effective
16earlier than 90 days after its execution.
17    (e) All information provided by a financial institution
18under this Section is confidential and may be used only for the
19purpose of enforcing payment of delinquent taxes.
20    (f) A financial institution that provides information
21under this Section shall not be liable to any account holder,
22owner, or other person in any civil, criminal, or
23administrative action for any of the following:
24        (1) Disclosing the required information to the
25    Department, any other provisions of law notwithstanding.
26        (2) Holding, encumbering, or surrendering any of an

 

 

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1    individual's accounts as defined in subsection (a) of this
2    Section in response to a lien or order to withhold and
3    deliver issued by the Department.
4        (3) Any other action taken or omission made in good
5    faith to comply with this Section, including individual or
6    mechanical errors, provided that the action or omission
7    does not constitute gross negligence or willful
8    misconduct.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.