Sen. Sara Feigenholtz

Filed: 3/1/2024

 

 


 

 


 
10300SB3617sam001LRB103 34188 HLH 70334 a

1
AMENDMENT TO SENATE BILL 3617

2    AMENDMENT NO. ______. Amend Senate Bill 3617 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1    bank or saving institution the deposits of which are
2    insured pursuant to the Federal Deposit Insurance Act, or
3    any uninsured branch or agency of a foreign bank or a
4    commercial lending company owned or controlled by a
5    foreign bank;
6        (3) a federal depository institution, which is any
7    national bank, any federal savings association, or any
8    federal branch;
9        (4) a state depository institution, which is any state
10    bank, any state savings association, or any insured branch
11    that is not a federal branch;
12        (5) a federal credit union, which is a cooperative
13    association organized in accordance with the provisions of
14    the Federal Credit Union Act;
15        (6) a state-chartered credit union that is organized
16    and operated according to the laws of this or any other
17    state, which laws provide for the organization of credit
18    unions similar in principle and objectives to federal
19    credit unions; and
20        (7) any benefit association, insurance company, safe
21    deposit company, money market mutual fund, or similar
22    entity authorized to do business in this State.
23    "Financial record" has the meaning given to that term in
24Section 3401 of the federal Right to Financial Privacy Act of
251978.
26    (b) The Department may design and implement a data match

 

 

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1system pursuant to which the Department and financial
2institutions doing business in this State may enter into
3agreements for the purpose of identifying accounts of
4taxpayers who are delinquent in the payment of a tax collected
5by the Department. No financial institution shall be required
6to enter into any such agreement with the Department.
7    Any agreement entered into with a financial institution
8under this Section shall provide, at the option of the
9financial institution, either (i) that the financial
10institution shall compare the data of account holders, owners,
11or customers who maintain one or more accounts at the
12financial institution with data of individuals and business
13entities who are identified by the Department as delinquent
14taxpayers and whose name, record address, and social security
15number or tax identification number are provided by the
16Department to the financial institution or (ii) that the
17financial institution shall provide to the Department the
18social security numbers or tax identification numbers of the
19account holders, owners, or customers who maintain one or more
20accounts at the financial institution, and the Department
21shall compare that data with data of individuals and business
22entities who are identified by the Department as delinquent
23taxpayers.
24    If the financial institution or the Department determines
25that the name and social security number or tax identification
26number of an individual or business entity identified by the

 

 

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1Department as a delinquent taxpayer matches the name and
2social security number or tax identification number of an
3account holder, owner, or customer who maintains one or more
4accounts at the financial institution, then the financial
5institution shall report the individual's or business entity's
6name and either social security number or tax identification
7number to the Department for each calendar quarter in which
8the Department notifies the financial institution that the
9individual or business entity is a delinquent taxpayer.
10    (c) The reporting requirements of subsection (b) of this
11Section apply to personal (both individual and joint) and
12business accounts, including sole proprietorship accounts. In
13the case of a joint account, the account holder or owner shall
14be deemed to be the primary account holder or owner
15established by the financial institution in accordance with
16federal 1099 reporting requirements.
17    (d) The Department shall make a reasonable effort to
18accommodate those financial institutions on which the
19requirements of this Section would impose a hardship. In the
20case of a non-automated financial institution, a paper copy
21including either social security numbers or tax identification
22numbers is an acceptable format. In order to allow for data
23processing implementation, no agreement shall become effective
24earlier than 90 days after its execution.
25    (e) All information provided by a financial institution
26under this Section is confidential and may be used only for the

 

 

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1purpose of enforcing payment of delinquent taxes.
2    (f) A financial institution that provides information
3under this Section shall not be liable to any account holder,
4owner, or other person in any civil, criminal, or
5administrative action for any of the following:
6        (1) disclosing the required information to the
7    Department, any other provisions of law notwithstanding;
8        (2) holding, encumbering, or surrendering any of an
9    individual's accounts as defined in subsection (a) of this
10    Section in response to a lien or order to withhold and
11    deliver issued by the Department; or
12        (3) any other action taken or omission made in good
13    faith to comply with this Section, including individual or
14    mechanical errors, provided that the action or omission
15    does not constitute gross negligence or willful
16    misconduct.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".