Delinquent taxpayer financial accounts; required reporting by financial institutions to department; confidentiality; fines; levies; liability.

(a) As used in this Code section, the term:

(1) “Account” means:

(A) With respect to a depository institution as defined in 12 U.S.C. Section 1813(c), a deposit account;

(B) With respect to any federal or state credit union as defined in 12 U.S.C. Section 1752, a deposit account; and

(C) With respect to a benefit association, safe deposit company, money market mutual fund, brokerage firm, trust company, or similar entity authorized to do business in the State of Georgia, any account.

(2) “Delinquent taxpayer” means a person owing an unpaid tax liability for which appeals from assessments of taxes pursuant to Title 48 or other applicable laws have expired or been exhausted, and for which an execution has been recorded by the department, unless such execution is released, withdrawn, or expired.

(3) “Financial institution” means:

(A) A depository institution as defined in 12 U.S.C. Section 1813(c);

(B) Any federal or state credit union as defined in 12 U.S.C. Section 1752; or

(C) Any benefit association, safe deposit company, money market mutual fund, brokerage firm, trust company, or similar entity authorized to do business in the State of Georgia.

(b) The department may request not more than four times a year from a financial institution information provided in subsection (c) of this Code section for delinquent taxpayers for whom the department has filed an execution in accordance with Chapter 3 of this title.

(c) Financial institutions doing business in this state shall, within 30 days after a financial institution receives a request for information under subsection (b) of this Code section, submit a report to the department in an industry standard, machine-readable, electronic format to be prescribed by the department. Each such report shall identify any accounts that the financial institution holds with respect to the delinquent taxpayers identified in the request. The financial institution, to the maximum extent possible, shall provide the name, record address, social security number or other taxpayer identification number, account balance, and other electronically available account identifying information for each delinquent taxpayer who maintains an account at the financial institution as identified to such financial institution by the department by name and social security number or other taxpayer identification number in an industry standard, machine-readable, electronic format. The department may pay a reasonable fee to financial institutions for conducting the searches required by this Code section in an amount that does not exceed the actual costs incurred by the financial institution or $100.00, whichever is less.

(d) The department is authorized to enter into agreements with financial institutions to develop and operate an automated data exchange to accomplish the provisions of subsection (c) of this Code section.

(f) (1) The department may impose a fine on any financial institution that fails to submit a report required pursuant to this Code section in the amount of $1,000.00, provided that:

(A) The department notifies the financial institution of its failure to submit a report by certified mail or statutory overnight delivery, return receipt requested;

(B) Such financial institution fails to submit such report within 15 business days after the mailing of the notification provided for in subparagraph (A) of this paragraph; and

(C) Such financial institution fails to present cause for such failure to the department that the department determines to be reasonable cause for such failure.

(2) The department may impose a fine on a financial institution in the amount of $1,000.00 if the department determines that a financial institution willfully provided false information with respect to any cause that such financial institution presents to the department for its failure to submit a report.

(g) The department may use the information received pursuant to this Code section only for the purpose of enforcing the collection of taxes and fees administered by the department. The department shall determine whether to levy upon accounts identified pursuant to this Code section and shall follow the levy process set forth in Code Section 48-2-55, subject to the rights and remedies of delinquent taxpayers provided for under Code Section 48-2-59 or other provisions of law, and the rights and remedies of financial institutions provided in Code Section 48-2-55 or other provisions of law.

(h) To the extent possible and in compliance with state and federal law, the department shall administer this Code section in the same manner as prescribed in Article 1 of Chapter 11 of Title 19 to avoid duplication and reduce the burden on financial institutions.

(i) Notwithstanding Code Section 7-1-360 or other provisions of law, a financial institution furnishing a report to the department or the department’s designated agent under this Code section is prohibited from disclosing to any person, including the delinquent taxpayer, any information that has been received from or furnished to the department or the department’s designated agent under this Code section. However, a financial institution may disclose to its depositors or account holders that the department has the authority to request certain identifying information on certain depositors or account holders pursuant to this Code section.

(j) A financial institution that complies with a request from the department by submitting a report to the department or the department’s designated agent in accordance with this Code section shall not be liable to any person for:

(1) Disclosing information to the department or the department’s designated agent under this Code section;

(2) Encumbering or surrendering any assets held by the financial institution in response to a notice of lien or levy issued by the department;

(3) Any error on the part of the department in connection with a notice of lien or levy issued by the department upon accounts identified pursuant to this Code section, including costs or fees charged to such accounts as a result of such error; or

(4) Other action taken in good faith to comply with the requirements of this Code section.

(k) Any financial records obtained pursuant to this Code section may be disclosed only for the purpose of, and to the extent necessary for, administration and enforcement of the tax laws of this state.

(l) The department may adopt rules establishing the procedures and requirements for conducting data matches with financial institutions pursuant to this Code section.

(m) The commissioner may institute civil proceedings to enforce this Code section. History. Code 1981, § 48-2-63, enacted by Ga. L. 2021, p. 642, § 1/SB 201. Effective date. — This Code section became effective May 10, 2021.