NC H1881

Expands the definition of "account receivable" to explicitly include taxes, enabling the State Controller to pursue collection of tax debts through the statewide accounts receivable program.

Authorizes the Department of Revenue to submit taxpayer debt information to financial institutions on a quarterly or more frequent basis to identify and garnish intangible property (such as bank deposits) belonging to taxpayers who owe collectible tax debts.

Establishes procedures for electronic notices of garnishment to financial institutions and reduces the compliance timeframe for financial institutions from 30 days to 20 days upon receiving a garnishment notice.

Adds community colleges as claimant agencies under the Setoff Debt Collection Act and allows for setoff of overdue tax debts, in addition to existing accounts receivable, against payments owed by the State.

Modifies procedures to allow the use of federal identification numbers in addition to social security numbers for identifying debtors in tax collection and setoff processes, with Section 2.1 becoming effective January 1, 2011.