HI SB2924

Allows Department of Taxation to disclose tax returns and return information to Department of Attorney General deputies engaged in grand jury proceedings or investigations related to tax administration, subject to specified conditions regarding taxpayer involvement and relevance to the proceeding.

Permits disclosure of tax returns and return information in federal or state judicial or administrative proceedings when the taxpayer is a party, the proceeding relates to determining the taxpayer's civil or criminal liability for taxes, or the information directly relates to a transactional relationship affecting the proceeding's resolution.

Authorizes disclosure to federal, state, or local law enforcement agencies solely for investigating and prosecuting criminal offenses involving identity theft or fraudulent tax refund claims.

Allows disclosure to persons providing services to the Department of Taxation for processing, storage, retention, transmission, equipment maintenance, and other administrative purposes, with the director authorized to adopt rules governing such disclosures.

Requires recipients of tax return information to establish tracking systems recording all requests and reasons, maintain secure storage, restrict access to necessary personnel, and comply with director-approved safeguarding measures; takes effect July 1, 2030.