Section 40-29-23.1
Development and operation of financial institution data match program.
(a) For purposes of this section the following terms shall have the following meanings:
(1) ACCOUNT. A demand deposit account, checking account, negotiable withdrawal order account, savings account, time deposit account, or money-market mutual fund account.
(2) ACCOUNT HOLDER. A person or persons authorized to perform transactions on behalf of an account.
(3) DELINQUENT TAXPAYER. A taxpayer with an outstanding tax liability for which a final assessment has been entered that is no longer subject to appeal under the Alabama Taxpayer's Bill of Rights, so that the assessment is final, due, and owing, and for whom both of the following conditions are true:
a. The tax liability remains unpaid after 10 days from the issuance of a final notice before seizure by the department.
b. The person is not making current timely installment payments on the tax liability under agreement with the department.
(4) DEPARTMENT. The Alabama Department of Revenue.
(5) DESIGNATED DATA PROCESSING AGENT. A person authorized by a financial institution and approved by the department to receive information necessary to implement the financial data match program established under this section.
(6) FINAL ASSESSMENT. Has the same meaning as in Section 40-2A-3.
(7) FINANCIAL INSTITUTION. Includes depository institutions, as defined in Section 3(c) of the Federal Deposit Insurance Act, 12 U.S.C. §1813(c) and as amended from time to time; institution-affiliated parties, as defined in Section 3(u) of 12 U.S.C. §1813(u) and as amended from time to time; any federal credit union or state credit union, as defined in Section 101 of the Federal Credit Union Act, 12 U.S.C. §1752 and as amended from time to time, including an institution-affiliated party of a credit union, as defined in Section 206(r) of the Federal Credit Union Act, 12 U.S.C. § 1786(r) and as amended from time to time; and any benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity doing business or authorized to do business in the state.
(8) PERSON. As defined in Section 40-1-1.
(9) TAXPAYER. As defined in Section 40-2A-3.
(b) The department and a financial institution doing business or authorized to do business in Alabama, or its designated data processing agent, may enter into an agreement to develop and operate a financial institution data match (FIDM) program utilizing automated data exchanges to the maximum extent feasible, to provide the following identifying information, to the extent available for each delinquent taxpayer who maintains an account with the financial institution, to the department on a calendar quarter basis:
(1) Name.
(2) Record address.
(3) Social Security number.
(4) Federal employer identification number.
(5) Other tax identification number.
(6) Other identifying information that may be a part of the records of the financial institution.
(c) No penalty shall be assessed or enforced, nor shall the department take any adverse action, against a financial institution based on its decision not to enter into an FIDM agreement with the department.
(d) The department may pay a reasonable fee to a financial institution for conducting a data match, in accordance with the terms of the parties' voluntary agreement, not to exceed the actual costs incurred by the financial institution.
(e)(1) Unless otherwise required by law, a financial institution furnishing a report or providing information to the department pursuant to this section shall not disclose to an account holder that any identifying information of that delinquent taxpayer has been received from or furnished to the department.
(2) A financial institution may disclose to its depositors or account holders that the department has the authority to request certain identifying information on certain depositors or account holders under the financial institution data match system for state tax collection purposes.
(f) A financial institution shall not incur any obligation or liability to an account holder or any person arising from any of the following activities:
(1) Furnishing information as required by this section and applicable rules.
(2) Failing to disclose to a delinquent taxpayer who is an account holder that any identifying information of the delinquent taxpayer was included in the data exchange with the department as required by this section.
(3) Any other action taken in good faith to comply with the requirements of this section.
(g) All information provided by a financial institution under this section is confidential and is available to the department or its agents for use only to the extent necessary for the proper administration of matters administered by the department.
(h) The first data exchange for purposes of matching delinquent taxpayer records to financial institution account holder records shall occur no earlier than January 1, 2020.
(i) This section is not intended to and does not alter or abrogate statutory procedures and due process protections pursuant to which the department executes a garnishment against the property of a delinquent taxpayer in the possession or control of a financial institution, including the requirement of notice of garnishment to the taxpayer and the institution, and related due process requirements and protections.
(j) The department shall adopt rules for the implementation and administration of this section.
(Act 2019-285, §1.)