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This entry was published on 2022-04-29
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SECTION 1701
Financial institution data match system for state tax collection purposes
Tax (TAX) CHAPTER 60, ARTICLE 36
§ 1701. Financial institution data match system for state tax
collection purposes. 1. Definitions. As used in this section:

* (a) "Debt" means past-due tax liabilities, including unpaid tax,
interest, and penalty, that the commissioner is required by law to
collect and that have become fixed and final such that the taxpayer no
longer has any right to administrative or judicial review.

* NB Effective until April 1, 2025

* (a) "Debt" means all liabilities, including unpaid tax, interest,
and penalty, that the commissioner is required by law to collect and
that have been reduced to judgment by the docketing of a New York state
tax warrant in the office of a county clerk located in the state of New
York or by the filing of a copy of the warrant in the office of the
department of state.

* NB Effective April 1, 2025

(b) "Tax debtor" means a natural person or any entity other than a
natural person named on a New York state tax warrant and identified
thereon as a judgment debtor.

(c) "Financial institution" means (i) any financial institution
authorized or required to participate in a financial institution data
match system or program for child support enforcement purposes under
federal or state law, and (ii) any virtual currency business licensed by
the superintendent of financial services.

2. Financial institution data match system for state tax collection
purposes. * (a) To assist the commissioner in the collection of debts,
the department must develop and operate a financial institution data
match system for the purpose of identifying and seizing the non-exempt
assets of tax debtors as identified by the commissioner. The
commissioner is authorized to designate a third party to develop and
operate this system. Notwithstanding any other provisions of this
chapter, the commissioner is authorized to disclose the debt and the
debtor information to such third party and to financial institutions for
purposes of this system. Any third party designated by the commissioner
to develop and operate a financial data match system must keep all
information it obtains from both the department and the financial
institution confidential, and any employee, agent or representative of
that third party is prohibited from disclosing that information to
anyone other than the department or the financial institution.

* NB Effective until April 1, 2025

* (a) To assist the commissioner in the collection of debts, the
department must develop and operate a financial institution data match
system for the purpose of identifying and seizing the non-exempt assets
of tax debtors as identified by the commissioner. The commissioner is
authorized to designate a third party to develop and operate this
system. Any third party designated by the commissioner to develop and
operate a financial data match system must keep all information it
obtains from both the department and the financial institution
confidential, and any employee, agent or representative of that third
party is prohibited from disclosing that information to anyone other
than the department or the financial institution.

* NB Effective April 1, 2025

(b) Each financial institution doing business in the state must, in
conjunction with the commissioner or the commissioner's authorized
designee, develop and operate a data match system to facilitate the
identification and seizure of non-exempt financial assets of tax debtors
identified by the commissioner or the commissioner's authorized
designee. If a financial institution has a data match system developed
or used to administer the child support enforcement programs of this
state, and if that system is approved by the commissioner or the
commissioner's authorized designee, the financial institution may use
that system to comply with the provisions of this section.

3. Each financial institution must provide identifying information
each calendar quarter to the department for each tax debtor identified
by the department who or that maintains an account at the institution.
The identifying information must include the tax debtor's name, address,
and social security number or other taxpayer identification number, and
all account numbers and balances in each account.

4. A financial institution that complies with this section will not be
liable under state law to any person for the disclosure of information
to the commissioner or the commissioner's authorized designee, or any
other action taken in good faith to comply with this section.

5. Both the financial institution furnishing a report to the
commissioner under this section and the commissioner's authorized
designee are prohibited from disclosing to the tax debtor that the name
of the tax debtor has been received from or furnished to the
commissioner, unless authorized in writing by the commissioner to do so.
A violation of this subdivision will result in the imposition of a civil
penalty equal to the greater of one thousand dollars or the amount in
the account of the person to whom the disclosure was made for each
instance of unauthorized disclosure by the financial institution. That
civil penalty can be assessed and collected under this chapter as if
that penalty were tax.

6. 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 under
the financial institution data match system for state tax collection
purposes.