{"data":{"id":"us-ky/krs-131.672","jurisdiction":"us-ky","citation":"KRS 131.672","heading":"Collection of delinquent taxes or debts -- Financial institution data match","body":"system -- Requirements for implementation of system -- Lien or levy on\naccount assets -- Notice -- Fees -- Erroneous lien or levy -- Administrative\nregulations.\n(1) To assist the department in the collection of delinquent taxes and debts owed to the\nCommonwealth, the department shall implement and operate a financial institution\nmatch system for the purpose of identifying and seizing the financial assets of\ndelinquent taxpayers and debtors as identified by the department. The provisions of\nKRS 131.670 to 131.676 shall be applied uniformly to all financial institutions\nwithin the Commonwealth holding accounts subject to levy as authorized by KRS\n131.500 and sha ll not be implemented in any financial institution unless and until\nthe department is prepared to implement the system in ninety percent (90%) of all\nfinancial institutions within a period of no longer than eighteen (18) months from\nJune 26, 2007, or unles s the financial institution in which the system will be\nimplemented and the department agree, in writing, to implement the system sooner\nin that financial institution.\n(2) The department and the financial institution shall implement and operate the system\nidentified in subsection (1) of this section by use of the data match system operated\nby the financial institution as required by KRS 15.844 and 15.846 for the purpose of\nadministering the child support enforcement programs of the Commonwealth.\n(3) (a) When the department determines that the name, record address, and either\nSocial Security number or taxpayer identification number of an account with a\nfinancial institution matches the name, record address, and either the Social\nSecurity number or taxpayer identification number of a delinquent taxpayer or\ndebtor, a lien or levy shall, subject to the provisions of subsection (4) of this\nsection, arise against the assets in the account at the time of receipt of the\nnotice by the financial institution at which the account is maintained.\n(b) The department shall provide notice of the following to the debtor or\ndelinquent taxpayer and the financial institution:\n1. The match;\n2. The lien or levy arising therefrom; and\n3. The action to be taken to surrender or encumbe r the account with the\nlien or levy for delinquent taxes.\nNotice shall be provided to the debtor or delinquent taxpayer within two (2)\nbusiness days of the date the notice is sent to the financial institution.\n(4) A financial institution ordered to surrender or encumber an account shall be entitled\nto collect its  normally scheduled account activity fees to maintain the account\nduring the period of time the account is seized or encumbered.\n(5) A financial institution may charge an account levied on by the department a fee of\nnot more than twenty dollars ($20), whic h may be deducted from the account prior\nto remitting any funds to the department.\n(6) The department shall bear the cost or, if paid by the delinquent taxpayer or debtor,\nreimburse the delinquent taxpayer or debtor for any bank charges incurred as a\nresult of any erroneous lien or levy by the department, provided the erroneous lien\nor levy was caused by department error and, prior to the issuance of the erroneous\nlien or levy, the delinquent taxpayer or debtor timely responded to all contacts by\nthe depart ment and provided information or documentation sufficient to establish\nhis or her position.\n(7) The department shall promulgate administrative regulations to implement KRS\n131.670 to 131.676.\n(8) For purposes of this section, \"financial institution\" has th e same meaning as\nprovided in KRS 15.844.","path":["KRS Chapter 131"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54413","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:23Z","sha256":"f39f1c23894d71c0c70743fe97eef2dea6fdcdcb01ed57a000507d903bf04d0c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-131.670","next":"us-ky/krs-131.674"},"notice":"GroundRules: Original legal text. Not legal advice."}