HB420 Summary

• Adds Section 40-29-23.1 to the Code of Alabama 1975, authorizing the Department of Revenue to enter into voluntary agreements with financial institutions to develop and operate a Financial Institution Data Match (FIDM) program for identifying delinquent taxpayers.

• Financial institutions may exchange identifying information on delinquent taxpayers quarterly, including name, address, Social Security number, federal employer identification number, and other tax identification numbers.

• A delinquent taxpayer is defined as one with a final, unpaid tax assessment that remains due 10 days after a final notice and who is not making current timely installment payments under a department agreement.

• Financial institutions are protected from liability for furnishing information and failing to disclose data exchanges to account holders; no penalties or adverse action may be taken against institutions that decline to participate.

• First data exchanges cannot occur before January 1, 2020; all information is confidential and for department use only; existing garnishment procedures and due process protections remain in effect.