HB140 Alabama 2019 Session

Summary

Primary Sponsor

Kyle South

Republican

Session

Regular Session 2019

Title

Taxation, require Dept. of Revenue to enter into agreements with financial institutions to develop a financial institution data match program, Sec. 40-29-23.1 added.

Summary

The bill would let the Alabama Department of Revenue work with financial institutions to create a Financial Institution Data Match program to help collect delinquent taxes by sharing account-holder information.

What This Bill Does

Allows the Department of Revenue to enter into agreements with financial institutions doing business in Alabama to develop and operate a Financial Institution Data Match (FIDM) program using automated data exchanges. For each delinquent taxpayer who maintains an account with a participating financial institution, the department would receive identifying information (name, address, Social Security number, FEIN, other tax IDs, and other identifying data) on a quarterly basis. The department may pay a reasonable fee to the financial institution for conducting the data match, not to exceed actual costs. The program includes confidentiality and use restrictions, prohibits disclosure to account holders about the data match, and limits use to identifying delinquent taxpayers; it does not change garnishment or due process protections and requires the department to adopt implementing rules.

Who It Affects

• Delinquent taxpayers who have accounts at participating financial institutions, whose identifying information may be shared with the Department of Revenue to aid in tax collection.
• Financial institutions (and designated data processing agents) that participate in the FIDM program, who would process and exchange data, may receive payment for the matching services, and must follow confidentiality and use restrictions.

Key Provisions

• Authorizes the Department of Revenue to enter into agreements with financial institutions to develop and operate the Financial Institution Data Match (FIDM) program.
• Requires automated quarterly data exchanges to provide available identifying information for delinquent taxpayers with accounts (name, address, various tax IDs, and other identifiers).
• Allows the department to pay a reasonable fee to financial institutions for conducting the data match, up to actual costs.
• Imposes confidentiality and use limits on shared information, prohibits disclosure to account holders about the data match, and shields institutions from liability for good-faith actions.
• States that the first data exchange cannot occur before January 1, 2020, and that garnishment and due process protections remain unchanged.
• Requires the Department to adopt rules to implement and administer the act, and the act becomes effective immediately upon governor's signature.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation