Title 44
Taxation

Chapter 53
Levy and Distraint

§ 44-53-18. Financial institution data match system for state tax collection purposes.

(a) Definitions. As used in this section:

(1) “Division” means the Rhode Island department of revenue, division of taxation.

(2) “Financial institution” means any bank, savings and loan association, federal or state credit union, trust company, consumer lender, international banking facility, financial institution holding company, benefit association, insurance company, safe deposit company, or any entity authorized by the taxpayer to buy, sell, transfer, store, and/or trade monetary assets or its equivalent, including, but not limited to, virtual currency, and any party affiliated with the financial institution. A financial institution includes any person or entity authorized or required to participate in a financial institution data match system or program for child support enforcement purposes under federal or state law.

(b) Financial institution data match system for state tax collection purposes.

(1) To assist the tax administrator in the collection of debts, the division shall develop and operate a financial institution data match system for the purpose of identifying and seizing the non-exempt assets of delinquent taxpayers as identified by the tax administrator. The tax administrator is authorized to designate a third party to develop and operate this system. Any third party designated by the tax administrator to develop and operate a financial data match system must keep all information it obtains from both the division 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 division or the financial institution.

(2) Each financial institution doing business in the state shall, in conjunction with the tax administrator or the tax administrator’s authorized designee, develop and operate a data match system to facilitate the identification and seizure of non-exempt financial assets of delinquent taxpayers identified by the tax administrator or the tax administrator’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 tax administrator or the tax administrator’s authorized designee, the financial institution may use that system to comply with the provisions of this section.

(c) Each financial institution must provide identifying information at least each calendar quarter to the division for each delinquent taxpayer identified by the division who or that maintains an account at the institution. The identifying information must include the delinquent taxpayer’s name, address, and social security number or other taxpayer identification number, and all account numbers and balances in each account.

(d) 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 tax administrator or the tax administrator’s authorized designee, or any other action taken in good faith to comply with this section.

(e) Both the financial institution furnishing a report to the tax administrator under this section and the tax administrator’s authorized designee are prohibited from disclosing to the delinquent taxpayer that the name of the delinquent taxpayer has been received from or furnished to the tax administrator, unless authorized in writing by the tax administrator to do so. A violation of this subsection will result in the imposition of a civil penalty equal to the greater of one thousand dollars ($1,000) 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 or the tax administrator’s authorized designee under subsection (b)(1). That civil penalty can be assessed and collected under this title as if that penalty were tax.

(f) A financial institution may disclose to its depositors or account holders that the division 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.

(g) This section does not prevent the division from encumbering a delinquent taxpayer’s account with a financial institution by any other remedy available for the enforcement of tax collection activities.