Existing law creates the Department of Taxation, which has various powers and duties related to the administration and collection of certain taxes, fees, assessments and other amounts of money. (Chapter 360 of NRS) If a person owes delinquent taxes or has a deficiency determination against him or her with respect to any tax administered by the Department, existing law authorizes the Department to attempt collection of the tax or deficiency in certain ways. (NRS 360.4193, 360.420, 360.473, 360.483) Section 1 of this bill requires the Department to develop and operate a system for matching data to collect certain outstanding debts owed to the State. Pursuant to section 1, financial institutions in this State must: (1) provide to the Department information on persons who maintain accounts at the financial institution and are identified by the Department as owing outstanding debts to the State; and (2) encumber certain assets held in the financial institution by the debtors to pay their debts. Existing law makes the records and files of the Department of Taxation concerning the administration and collection of taxes, fees, assessments and other amounts and the imposition of disciplinary action confidential and privileged, but authorizes the disclosure of such records and files under certain circumstances. (NRS 360.255) Section 2 of this bill provides that the Department may disclose certain confidential information to certain financial institutions for the purpose of carrying out the provisions of section 1. Existing law prohibits, with certain exceptions, a governmental agency from requesting, and a financial institution from providing, certain financial records of certain customers. (NRS 239A.070, 239A.080) Section 3 of this bill provides that the Department may request, and a financial institution may provide to the Department in response to such a request, certain financial records of certain customers of the financial institution who owe outstanding debts to the State.

Statutes affected:
As Introduced: 360.255, 239A.070
BDR: 360.255, 239A.070