KRS 131.672: Collection of delinquent taxes or debts -- Financial institution data match

system -- Requirements for implementation of system -- Lien or levy on

account assets -- Notice -- Fees -- Erroneous lien or levy -- Administrative

regulations.

(1) To assist the department in the collection of delinquent taxes and debts owed to the

Commonwealth, the department shall implement and operate a financial institution

match system for the purpose of identifying and seizing the financial assets of

delinquent taxpayers and debtors as identified by the department. The provisions of

KRS 131.670 to 131.676 shall be applied uniformly to all financial institutions

within the Commonwealth holding accounts subject to levy as authorized by KRS

131.500 and sha ll not be implemented in any financial institution unless and until

the department is prepared to implement the system in ninety percent (90%) of all

financial institutions within a period of no longer than eighteen (18) months from

June 26, 2007, or unles s the financial institution in which the system will be

implemented and the department agree, in writing, to implement the system sooner

in that financial institution.

(2) The department and the financial institution shall implement and operate the system

identified in subsection (1) of this section by use of the data match system operated

by the financial institution as required by KRS 15.844 and 15.846 for the purpose of

administering the child support enforcement programs of the Commonwealth.

(3) (a) When the department determines that the name, record address, and either

Social Security number or taxpayer identification number of an account with a

financial institution matches the name, record address, and either the Social

Security number or taxpayer identification number of a delinquent taxpayer or

debtor, a lien or levy shall, subject to the provisions of subsection (4) of this

section, arise against the assets in the account at the time of receipt of the

notice by the financial institution at which the account is maintained.

(b) The department shall provide notice of the following to the debtor or

delinquent taxpayer and the financial institution:

1. The match;

2. The lien or levy arising therefrom; and

3. The action to be taken to surrender or encumbe r the account with the

lien or levy for delinquent taxes.

Notice shall be provided to the debtor or delinquent taxpayer within two (2)

business days of the date the notice is sent to the financial institution.

(4) A financial institution ordered to surrender or encumber an account shall be entitled

to collect its normally scheduled account activity fees to maintain the account

during the period of time the account is seized or encumbered.

(5) A financial institution may charge an account levied on by the department a fee of

not more than twenty dollars ($20), whic h may be deducted from the account prior

to remitting any funds to the department.

(6) The department shall bear the cost or, if paid by the delinquent taxpayer or debtor,

reimburse the delinquent taxpayer or debtor for any bank charges incurred as a

result of any erroneous lien or levy by the department, provided the erroneous lien

or levy was caused by department error and, prior to the issuance of the erroneous

lien or levy, the delinquent taxpayer or debtor timely responded to all contacts by

the depart ment and provided information or documentation sufficient to establish

his or her position.

(7) The department shall promulgate administrative regulations to implement KRS

131.670 to 131.676.

(8) For purposes of this section, "financial institution" has th e same meaning as

provided in KRS 15.844.