SB357 Alabama 2019 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

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

This bill would let the Department of Revenue work with financial institutions to create a data-matching program to help collect delinquent taxes.

What This Bill Does

It authorizes voluntary agreements between the Department of Revenue and financial institutions in Alabama to develop and operate a Financial Institution Data Match (FIDM) program that shares identifying information about delinquent taxpayers who have accounts at those institutions on a quarterly basis. The information shared can include names, addresses, Social Security numbers, tax IDs, and other identifiers, with first data exchange no earlier than January 1, 2020, and under strict confidentiality. Banks that participate may be paid reasonable costs; participating is voluntary with no penalties for opting out, and due process and garnishment protections remain unchanged; rules for implementation will be adopted by the department.

Who It Affects

• Delinquent taxpayers who maintain accounts at financial institutions in Alabama, whose identifying information may be shared with the Department of Revenue to aid collection of unpaid taxes.
• Financial institutions doing business or authorized to do business in Alabama, which may enter into voluntary agreements to conduct the data match, receive potential payment for data matching, and must handle information confidentiality.
• Account holders/depositors, who may be informed by their bank that the department has the authority to request certain identifying information for state tax collection, though specific taxpayer information shared is not to be disclosed to account holders.

Key Provisions

• Creates 40-29-23.1 to authorize the Department of Revenue to enter into voluntary agreements with financial institutions to develop and operate a financial institution data match (FIDM) program.
• Defines key terms (account, account holder, delinquent taxpayer, financial institution, etc.) and requires a quarterly match of identifying information for delinquent taxpayers with accounts at participating institutions.
• Allows the department to pay reasonable fees to financial institutions for data matching, not exceeding actual costs, and provides liability protections for institutions acting in good faith.
• Imposes confidentiality requirements on information exchanged, restricts disclosure to account holders, and permits limited disclosures to depositors about the department’s authority; preserves existing garnishment procedures and due process; requires the department to adopt implementing rules; first data exchange not before January 1, 2020.

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