Bill Text: MS SB2445 | 2017 | Regular Session | Enrolled
Bill Title: Department of Revenue; authorize data match system to identify assets of obligors of the state held by financial institutions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-04-05 - Approved by Governor [SB2445 Detail]
Download: Mississippi-2017-SB2445-Enrolled.html
MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2445
(As Sent to Governor)
AN ACT TO REQUIRE THE COMMISSIONER OF REVENUE TO DEVELOP AND OPERATE AN AUTOMATED DATA MATCH SYSTEM FOR THE PURPOSE OF IDENTIFYING AND SEIZING THE ASSETS HELD BY FINANCIAL INSTITUTIONS OF PERSONS AGAINST WHOM A JUDGMENT FOR A FINALLY DETERMINED TAX LIABILITY HAS BEEN ENROLLED IN THE UNIFORM STATE TAX LIEN REGISTRY; TO PROVIDE THAT CERTAIN INFORMATION MAY BE PROVIDED TO FINANCIAL INSTITUTIONS TO IDENTIFY OBLIGORS; TO REQUIRE FINANCIAL INSTITUTIONS AGREEING TO USE THE DATA MATCH SYSTEM TO TAKE CERTAIN ACTIONS UPON RECEIPT OF SUCH INFORMATION; TO PROVIDE PROCEDURES FOR SERVING A LEVY TO THE FINANCIAL INSTITUTION IF THE COMMISSIONER OF REVENUE DETERMINES IT IS APPROPRIATE; TO PROVIDE THAT THE INFORMATION PROVIDED TO THE FINANCIAL INSTITUTION SHALL NOT BE DISCLOSED TO ANYONE EXCEPT AS AUTHORIZED UNDER THIS ACT; TO PROVIDE THAT A FINANCIAL INSTITUTION SHALL BE IMMUNE FROM ANY LIABILITY FOR DISCLOSURE OF ANY INFORMATION AS AUTHORIZED UNDER THIS ACT OR FOR THE SURRENDER OF ANY ASSETS AS AUTHORIZED UNDER THIS ACT; TO PROVIDE THAT A FINANCIAL INSTITUTION SHALL NOT BE LIABLE FOR AN ACTION TAKEN IN GOOD FAITH TO COMPLY WITH THE REQUIREMENTS OF THIS ACT; TO AMEND SECTIONS 27-3-33, 27-3-73, 27-7-83, 27-13-57 AND 27-65-81, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO AMEND SECTION 11-35-23, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A GARNISHEE IS A BANK OR OTHER FINANCIAL INSTITUTION AND ITS INDEBTEDNESS TO THE DEFENDANT CONSISTS OF FUNDS ON DEPOSIT WITH SUCH INSTITUTION AT THE TIME OF SERVICE OF THE WRIT OF GARNISHMENT, THEN THE GARNISHEE SHALL BE HELD TO ACCOUNT FOR ONLY SUCH FUNDS ON DEPOSIT BETWEEN THE TIME OF SERVICE OF THE WRIT AND THE TIME OF SERVICE OF ITS ANSWER TO THE WRIT AND THE GARNISHEE SHALL HAVE NO OBLIGATION TO ACCOUNT FOR ADDITIONAL DEPOSITS AFTER THE TIME OF SERVICE OF THE ANSWER; TO PROVIDE THAT THE FINANCIAL INSTITUTION MAY SUBMIT ITS ANSWER AT ANYTIME WITHIN THE 30 DAYS ALLOWED FOR RESPONSE; TO AMEND SECTION 11-35-27, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. As used in this act:
(a) "Commissioner" means the Commissioner of Revenue of the Mississippi Department of Revenue.
(b) "Department" means the Mississippi Department of Revenue.
(c) "Finally determined tax liabilities" means any state tax, fee, penalty, and/or interest owed by a person to the department where the assessment of the liability is not subject to any further timely filed administrative or judicial review.
(d) "Person" means a natural person, partnership, limited partnership, corporation, limited liability company, estate, trust, association, joint venture, other legal entity or other group or combination acting as a unit, and includes the plural as well as the singular in number.
(e) "Financial institution" means a bank, trust company, mutual savings bank, savings and loan association or credit union authorized to do business and accept deposits in this state under state or federal law.
(f) "Account" means any money held in the name of an account owner, individually or jointly with another, including, but not limited to, a deposit account, demand account, savings account, negotiable order of withdrawal account, share account, member account, time certificate of deposit, or money market account. "Account" shall not include money held by a financial institution where the obligor is listed in a capacity other than the owner, including, but not limited to, an authorized signer only, custodian, payable on death beneficiary or agent.
(g) "Obligor" means any person against whom a tax judgment for a finally determined tax liability has been enrolled in the Uniform State Tax Lien Registry for which collection of the tax debt is enforceable as provided by law.
(h) "Levy" means a Distress Warrant for the Levy Of Monies Owed To Taxpayer(s) which is an instrument of the commissioner that bind monies held by the garnishee and owed to the obligor.
(i) "Identifying information" means an obligor's social security number or federal tax identification number.
SECTION 2. (1) The commissioner shall develop, maintain and operate an automated data match system for the purpose of identifying and seizing the financial assets of obligors as identified by the department.
(2) The commissioner may provide financial institutions a quarterly, electronic inquiry file containing names and identifying information of obligors. Within thirty (30) days of receipt of the inquiry file, the financial institution agreeing to use the data match system shall match the file against its own records for the purpose of identifying whether an account for an obligor is held by the financial institution and notify the department of its findings. When a match is identified, the financial institution shall provide the department the names and identifying numbers on record for the accounts, account numbers, and the account balances as of the date of response back to the department.
(3) A financial institution may request an extension of time to file the information required. Extensions of time are not automatically granted and the reporting institution must demonstrate good cause for requesting the extension. An extension of time for filing the required information may be granted if the request for extension is filed with the commissioner by the date on which the reports are due.
(4) Upon receiving the information from the financial institution and pursuant to the provisions of Section 27-3-33, the commissioner shall review such account information to determine if the department should serve a levy to the financial institution. The levy shall be served either by mail or by delivery by an agent of the commissioner. Not more than twenty-five (25) levies per day shall be served on a financial institution that participated in the data match system. The levy shall require the financial institution to encumber or surrender assets held by the institution on behalf of the obligor. For a financial institution participating in the data match program, the answer shall be made at any time within thirty (30) days after the service of the levy in the form and manner determined by the commissioner. Any amount encumbered and forwarded by the financial institution under this act shall not exceed the amount of the warrant.
(5) The financial institution agreeing to use the data match system shall be held to account for only the funds on deposit between the time of service of the levy and the time of its answer, and shall have no obligation to account for additional deposits accruing after the time of its answer to the department. The financial institution may serve its answer within a reasonable time not to exceed thirty (30) days and shall not be held to account for any indebtedness that arises subsequent to service of its answer or property that may come into its hands subsequent to the service of the levy.
(6) The commissioner may develop and provide a system wherein the levy may be delivered and responded to electronically by a financial institution, and the response may include, but shall not require, the electronic transfer of funds.
(7) The commissioner shall adopt a regulation establishing the procedures and requirements for conducting automated data matches with financial institutions pursuant to this act as soon as practicable after July 1, 2017.
SECTION 3. (1) If a financial institution has a current data match system used in compliance with the child support data match system provided for in Section 43-19-48, the financial institution may use that system to comply with the provisions of this act. The department shall not require a financial institution to change the file format established with the Department of Human Services in order to comply with this act.
(2) A financial institution, including its directors, officers, employees, attorneys, accountants or other agents, is immune from any liability under any law or regulation to any person for the disclosure of information pursuant to this act and for the encumbrance, seizure, or surrender of any assets held by the financial institution in response to a levy issued by the department. A financial institution is not liable for any action taken in good faith to comply with the requirements of this section.
(3) Except as otherwise provided in this subsection, a financial institution furnishing a report or providing information to the commissioner is prohibited from disclosing to a depositor or an account holder that the name of the person has been received from or furnished to the commissioner; however, financial institutions may, but are not required to, disclose to their depositors or account holders that the department has the authority to request and receive certain identifying information provided for under this act for state tax collection purposes. Financial institutions may, but are not required to, notify a depositor of account holder of the receipt of a levy and imposition of a hold on the depositor's or holder's account.
(4) An authorized agent transmitting data electronically on behalf of financial institutions is subject to the same terms, conditions, and confidentiality provisions that apply to such institutions, as set forth in this act.
(5) If a financial institution or any employee of the financial institution willfully violates the provisions of this act, the financial institution is liable for the lesser of the amount in the account of the depositor or account holder on the date of submittal of the answer by the financial institution or the dollar amount listed on the levy.
(6) A financial institution may not disclose any information contained in a request for information by the commissioner except to authorized employees, agents or attorneys of the financial institution engaged in complying with the reporting requirements of this act or to authorized employees of the department. Employees of the financial institution may use the information only as required in performing their duties and may not otherwise copy, reproduce, retain, or store any information except as instructed in writing by the commissioner. Any electronic media files or other information acquired by the financial institutions from the commissioner will remain the property of the department and must be returned to the commissioner at the time the information reports are due, or at any other time designated by the commissioner.
(7) The department and the financial institution shall not be liable for any applicable early withdrawal penalties and/or any nonsufficient funds (NSF) fees on the obligor's account(s).
(8) Notwithstanding any other law or rule to the contrary, the financial institution participating in the data match system may recover the costs associated with responding to a levy served upon it from the account of the depositor, per contractual agreement, and shall deduct this amount from the account of the depositor prior to transfer to the department.
(9) To support a data match, the department may disclose certain information relating to taxpayers against whom the department has filed a lien. The information includes the name and address of the taxpayer, the amount of the lien, and the person's identification numbers, including the social security number and/or the Employers Identification Number (EIN).
(10) The department may use the information received from a financial institution under this act only for the purpose of enforcing the collection of taxes, fees, penalties and/or interest administered by the department. The department shall keep all information received from the financial institutions pursuant to this act confidential, and any employee, agent, or representative of the department is prohibited from disclosing that information to any other third party.
SECTION 4. Section 27-3-33, Mississippi Code of 1972, is amended as follows:
27-3-33. (1) The Commissioner of Revenue shall have the power, authority and duty to direct that proceedings, actions and prosecutions be instituted to enforce the laws relating to the penalties, liabilities, and punishment of all persons, officers or agents or corporations, or others required by law to make returns of taxable property, for failure or neglect to comply with such provisions of the tax law; and to cause complaints to be made against assessors, boards of supervisors, and other officers, whose duties concern assessments, in any court of competent jurisdiction for their removal for official misconduct or neglect of such duty, as provided by law in such cases.
(2) The Commissioner of Revenue shall have the power, authority and duty to proceed by suit in the chancery court of the residence of the taxpayer or, in the case of a nonresident, in the Chancery Court of the First Judicial District of Hinds County, against all persons, corporations, companies and associations of persons for all past-due and unpaid taxes, together with any penalties, damages and interest due thereon, of any kind whatever, either of the state or any county, municipality, drainage, levee, or other taxing district, or any subdivision thereof, and for all past-due obligations and indebtedness of any character due and owing to them or any of them; but not, however, including penalties for the violation of the antitrust laws; and, provided that the duty and obligation of the Commissioner of Revenue hereunder accrues only at such time as the tax collector of the county, municipality, drainage, levee, or other taxing district, or any subdivision thereof, primarily responsible for the collection of taxes for the district has exhausted all legal remedies provided by the laws of this state.
(3) All suits by the Commissioner of Revenue under the provisions of this section, or under the provisions of Section 27-3-37 or Section 27-3-39, shall be in his official capacity for the use of the state, county, municipality, levee board or other taxing district interested; and he shall not be liable for costs, and may appeal without bond. Such suits may be tried at the return term and shall take precedence over other suits.
(4) All warrants issued by the Commissioner of Revenue for the collection of any taxes imposed by statute and collected by the Department of Revenue shall be used to levy on salaries, compensation or other monies due the delinquent taxpayer. The warrants shall be served by mail or by delivery by an agent of the Department of Revenue on the person or entity responsible or liable for the payment of the monies to the delinquent taxpayer. Once served, the employer or other person owing compensation due the delinquent taxpayer shall pay the monies over to the Department of Revenue in complete or partial satisfaction of the tax liability. Except as otherwise provided in Section 2 of this act, an answer shall be made within thirty (30) days after service of the warrant in the form and manner determined satisfactory by the commissioner. Failure to pay the money over to the Department of Revenue as required by this section shall result in the served party being personally liable for the full amount of the monies owed and the levy and collection process may be issued against the party in the same manner as other taxes. Except as otherwise provided by this section, the answer, the amount payable under the warrant and the obligation of the payor to continue payment shall be governed by the garnishment laws of this state but shall be payable to the Department of Revenue.
SECTION 5. Section 27-3-73, Mississippi Code of 1972, is amended as follows:
27-3-73. (1) Except in accordance with proper judicial order or as otherwise provided in this section or as authorized in Section 27-4-3, it shall be unlawful for the Commissioner of Revenue, or any deputy, agent, clerk or other officer or employee of the Department of Revenue, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required on any taxes collected by reports received by the Department of Revenue. This provision relates to all taxes collected by the Department of Revenue and not referred to in Sections 27-7-83, 27-13-57 and 27-65-81, requiring confidentiality of income tax, franchise tax and sales tax returns. All system edits, thresholds, and any other automated system calculations used by the Department of Revenue in the processing of returns or statistics or used to determine the correct tax due for all taxes administered by the department shall be considered confidential information and may not be divulged or made known. Nothing in this section shall be construed to prohibit the publication of statistics, so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection by the Attorney General, or any other attorney representing the state, of the report or return of any taxpayer who shall bring action to set aside the tax thereon, or against whom an action or proceeding has been instituted to recover any tax or penalty imposed. Additionally, nothing in this section shall prohibit the Commissioner of Revenue from making available information necessary to recover taxes owing the state pursuant to the authority granted in Section 27-75-16.
The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted.
However, information relating to possible tax liability to other states or the federal government may be furnished to the revenue departments of those states or the federal government when the states or federal government grant a like comity to Mississippi.
(2) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his office.
(3) Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
(4) Information required by the University Research Center to prepare the analyses required by Sections 57-13-101 through 57-13-109 shall be furnished to the University Research Center upon request. It shall be unlawful for any officer or employee of the University Research Center to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the center from the Department of Revenue other than as may be required by Sections 57-13-101 through 57-13-109 in an analysis prepared pursuant to Sections 57-13-101 through 57-13-109.
(5) Information required by the Mississippi Development Authority to prepare the reports required by Section 57-1-12.2 shall be furnished to the Mississippi Development Authority upon request. It shall be unlawful for any officer or employee of the Mississippi Development Authority to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the Mississippi Development Authority from the Department of Revenue other than as may be required by Section 57-1-12.2 in a report prepared pursuant to Section 57-1-12.2.
(6) Information necessary to comply with Sections 1 through 3 of this act may be furnished to financial institutions. It shall be unlawful for any officer or employee of the financial institution to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the financial institution from the Department of Revenue other than as may be authorized by Sections 1 through 3 of this act.
( * * *7) Any person who violates the
provisions of this section shall be guilty of a misdemeanor and, on conviction
thereof, shall be fined not more than One Thousand Dollars ($1,000.00) or
imprisoned not more than six (6) months in the county jail, or both.
( * * *8) The Commissioner of Revenue and the
Department of Revenue are authorized to disclose to the Child Support Unit and
to the Fraud Investigation Unit of the Department of Human Services without the
need for a subpoena or proper judicial order the name, address, social security
number, amount of income, amount of sales tax, source of income, assets and
other relevant information, records and tax forms for individuals who are
delinquent in the payment of any child support as defined in Section 93-11-101
or who are under investigation for fraud or abuse of any state or federal
program or statute as provided in Section 43-1-23.
SECTION 6. Section 27-7-83, Mississippi Code of 1972, is amended as follows:
27-7-83. (1) Returns and return information filed or furnished under the provisions of this chapter shall be confidential, and except in accordance with proper judicial order, as otherwise authorized by this section or as authorized in Section 27-4-3, it shall be unlawful for the Commissioner of Revenue or any deputy, agent, clerk or other officer or employee of the Department of Revenue or the Mississippi Department of Information Technology Services, or any former employee thereof, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required. The provisions of this section shall apply fully to any federal return, a copy of any portion of a federal return, or any information reflected on a federal return which is attached to or made a part of the state tax return. Likewise, the provisions of this section shall apply to any federal return or portion thereof, or to any federal return information data which is acquired from the Internal Revenue Service for state tax administration purposes pursuant to the Federal-State Exchange Program cited at Section 6103, Federal Internal Revenue Code. The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum, but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted.
(2) Returns and return information with respect to taxes imposed by this chapter shall be open to inspection by or disclosure to the Commissioner of the Internal Revenue Service of the United States, or the proper officer of any state imposing an income tax similar to that imposed by this chapter, or the authorized representatives of such agencies. Such inspection shall be permitted, or such disclosure made, only upon written request by the head of such agencies, or the district director in the case of the Internal Revenue Service, and only to the representatives of such agencies designated in a written statement to the Commissioner of Revenue as the individuals who are to inspect or to receive the return or return information on behalf of such agency. The Commissioner of Revenue is authorized to enter into agreements with the Internal Revenue Service and with other states for the exchange of returns and return information data, or the disclosure of returns or return information data to such agencies, only to the extent that the statutes of the United States or of such other state, as the case may be, grant substantially similar privileges to the proper officer of this state charged with the administration of the tax laws of this state.
(3) (a) The return of a person shall, upon written request, be open to inspection by or disclosure to:
(i) In the case of the return of an individual, that individual;
(ii) In the case of an income tax return filed jointly, either of the individuals with respect to whom the return is filed;
(iii) In the case of the return of a partnership, any person who was a member of such partnership during any part of the period covered by the return;
(iv) In the case of the return of a corporation or a subsidiary thereof, any person designated by resolution of its board of directors or other similar governing body, or any officer or employee of such corporation upon written request signed by any principal officer and attested to by the secretary or other officer;
(v) In the case of the return of an estate, the administrator, executor or trustee of such estate, and any heir at law, next of kin or beneficiary under the will, of the decedent, but only to the extent that such latter persons have a material interest which will be affected by information contained therein;
(vi) In the case of the return of a trust, the trustee or trustees, jointly or separately, and any beneficiary of such trust, but only to the extent that such beneficiary has a material interest which will be affected by information contained therein;
(vii) In the case of the return of an individual or a return filed jointly, any claimant agency seeking to collect a debt through the setoff procedure established in Sections 27-7-701 through 27-7-713 and Sections 27-7-501 through 27-7-519, from an individual with respect to whom the return is filed.
(b) If an individual described in paragraph (a) is legally incompetent, the applicable return shall, upon written request, be open to inspection by or disclosure to the committee, trustee or guardian of his estate.
(c) If substantially all of the property of the person with respect to whom the return is filed is in the hands of a trustee in bankruptcy or receiver, such return or returns for prior years of such person shall, upon written request, be open to inspection by or disclosure to such trustee or receiver, but only if the Commissioner of Revenue finds that such receiver or trustee, in his fiduciary capacity, has a material interest which will be affected by information contained therein.
(d) Any return to which this section applies shall, upon written request, also be open to inspection by or disclosure to the attorney-in-fact duly authorized in writing by any of the persons described in paragraph (a) of this subsection to inspect the return or receive the information on his behalf, subject to the conditions provided in paragraph (a).
(e) Return information with respect to any taxpayer may be open to inspection by or disclosure to any person authorized by this subsection to inspect any return of such taxpayer if the Commissioner of Revenue determines that such disclosure would not seriously impair state tax administration.
(4) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his employees or former employees.
(5) Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
(6) Information required by the University Research Center to prepare the analyses required by Sections 57-13-101 through 57-13-109 shall be furnished to the University Research Center upon request. It shall be unlawful for any officer or employee of the University Research Center to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the center from the Department of Revenue other than as may be required by Sections 57-13-101 through 57-13-109 in an analysis prepared pursuant to Sections 57-13-101 through 57-13-109.
(7) Information required by the Mississippi Development Authority to prepare the reports required by Section 57-1-12.2 shall be furnished to the Mississippi Development Authority upon request. It shall be unlawful for any officer or employee of the Mississippi Development Authority to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the Mississippi Development Authority from the Department of Revenue other than as may be required by Section 57-1-12.2 in a report prepared pursuant to Section 57-1-12.2.
(8) Information necessary to comply with Sections 1 through 3 of this act may be furnished to financial institutions. It shall be unlawful for any officer or employee of the financial institution to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the financial institution from the Department of Revenue other than as may be authorized by Sections 1 through 3 of this act.
( * * *9) Nothing in this section shall be
construed to prohibit the publication of statistics, so classified as to
prevent the identification of particular reports or returns and the items
thereof, or the inspection by the Attorney General, or any other attorney
representing the state, of the report or return of any taxpayer who shall bring
action to set aside the tax thereon, or against whom any action or proceeding
has been instituted to recover any tax or penalty imposed.
( * * *10) Nothing in this section shall
prohibit the commissioner from making available information necessary to
recover taxes owing the state pursuant to the authority granted in Section 27-75-16.
( * * *11) Reports and returns required
under the provisions of this chapter shall be preserved in accordance with
approved records control schedules. No records, however, may be destroyed
without the approval of the Director of the Department of Archives and History.
( * * *12) The Department of Revenue is
authorized to disclose to the Child Support Unit and to the Fraud Investigation
Unit of the Department of Human Services without the need for a subpoena or
proper judicial order the name, address, social security number, amount of
income, source of income, assets and other relevant information, records and
tax forms for individuals who are delinquent in the payment of any child
support as defined in Section 93-11-101 or who are under investigation for
fraud or abuse of any state or federal program or statute as provided in
Section 43-1-23.
( * * *13) Nothing in this section shall
prohibit the Department of Revenue from exchanging information with the federal
government that is necessary to offset income tax refund payment on debts owed
to this state or the United States.
( * * *14) Nothing in this section shall prohibit
the department from making available information that is necessary to be
disclosed for the administration and enforcement of Section 27-7-87.
SECTION 7. Section 27-13-57, Mississippi Code of 1972, is amended as follows:
27-13-57. (1) Except in accordance with the proper judicial order, or as otherwise provided in this section or as authorized in Section 27-4-3, it shall be unlawful for the Commissioner of Revenue or any deputy, agent, clerk or other officer or employee of the Department of Revenue to divulge or make known in any manner any particulars set forth or disclosed in any report or return required under this chapter. When a combined report or return is filed as authorized by Section 27-13-17(5), each report or return which composes the combined return shall be considered separate for the purpose of any examinations authorized in this section and only particulars relating to the specific return or report set forth in the judicial order or as otherwise provided shall be considered lawfully divulged. The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum, but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted. Nothing in this section shall be construed to prohibit the publication of statistics, so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection by the Attorney General or any other attorney representing the state of the report or return of any taxpayer who shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding has been instituted to recover any tax or penalty imposed by this chapter. Reports and returns shall be preserved in accordance with approved records control schedules. No records, however, may be destroyed without the approval of the Director of the Department of Archives and History.
However, information relating to possible tax liability of other states or the federal government may be furnished to the revenue department of those states or the federal government when those states or the federal government grant a like comity to Mississippi.
(2) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his office.
(3) Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
(4) Information required by the University Research Center to prepare the analyses required by Sections 57-13-101 through 57-13-109 shall be furnished to the University Research Center upon request. It shall be unlawful for any officer or employee of the University Research Center to divulge or make known in any manner any particulars set forth or disclosed in any information received by the center from the Department of Revenue other than as may be required by Sections 57-13-101 through 57-13-109 in an analysis prepared pursuant to Sections 57-13-101 through 57-13-109.
(5) Information required by the Mississippi Development Authority to prepare the reports required by Section 57-1-12.2 shall be furnished to the Mississippi Development Authority upon request. It shall be unlawful for any officer or employee of the Mississippi Development Authority to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the Mississippi Development Authority from the Department of Revenue other than as may be required by Section 57-1-12.2 in a report prepared pursuant to Section 57-1-12.2.
(6) Information necessary to comply with Sections 1 through 3 of this act may be furnished to financial institutions. It shall be unlawful for any officer or employee of the financial institution to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the financial institution from the Department of Revenue other than as may be authorized by Sections 1 through 3 of this act.
( * * *7) Nothing in this section shall
prohibit the Commissioner of Revenue from making available information
necessary to recover taxes owing the state pursuant to the authority granted in
Section 27-75-16, Mississippi Code of 1972.
( * * *8) Any person violating the provisions
of this section shall be guilty of a misdemeanor and, on conviction, shall be
punished by a fine of not exceeding Five Hundred Dollars ($500.00), or by
imprisonment not exceeding one (1) year, or both, at the discretion of the court,
and if the offender be an officer or employee of the state he shall be
dismissed from office and be incapable of holding any public office in this
state for a period of five (5) years thereafter.
SECTION 8. Section 27-65-81, Mississippi Code of 1972, is amended as follows:
27-65-81. (1) Applications, returns and information contained therein filed or furnished under this chapter shall be confidential, and except in accordance with proper judicial order, or as otherwise authorized by this section or as authorized by Section 27-4-3, it shall be unlawful for the Commissioner of Revenue or any deputy, agent, clerk or other officer or employee of the Department of Revenue or Department of Information Technology Services, or any former employee thereof, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed on any application, report or return required.
The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted.
(2) Such information contained on the application, returns or reports may be furnished to:
(a) Members and employees of the Department of Revenue and the income tax department thereof, for the purpose of checking, comparing and correcting returns;
(b) The Attorney General, or any other attorney representing the state in any action in respect to the amount of tax under the provisions of this chapter;
(c) The revenue department of other states or the federal government when said states or federal government grants a like comity to Mississippi.
(3) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his office.
(4) Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
(5) Information required by the University Research Center to prepare the analyses required by Sections 57-13-101 through 57-13-109 shall be furnished to the University Research Center upon request. It shall be unlawful for any officer or employee of the University Research Center to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the center from the Department of Revenue other than as may be required by Sections 57-13-101 through 57-13-109 in an analysis prepared pursuant to Sections 57-13-101 through 57-13-109.
(6) Information required by the Mississippi Development Authority to prepare the reports required by Section 57-1-12.2 shall be furnished to the Mississippi Development Authority upon request. It shall be unlawful for any officer or employee of the Mississippi Development Authority to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the Mississippi Development Authority from the Department of Revenue other than as may be required by Section 57-1-12.2 in a report prepared pursuant to Section 57-1-12.2.
(7) Information necessary to comply with Sections 1 through 3 of this act may be furnished to financial institutions. It shall be unlawful for any officer or employee of the financial institution to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the financial institution from the Department of Revenue other than as may be authorized by Sections 1 through 3 of this act.
( * * *8) Nothing in this section shall
prohibit the Commissioner of Revenue from making available information
necessary to recover taxes owing the state pursuant to the authority granted in
Section 27-75-16.
( * * *9) The Department of Revenue is
authorized to disclose to the Child Support Unit and to the Fraud Investigation
Unit of the Department of Human Services without the need for a subpoena or
proper judicial order the name, address, social security number, amount of
income, amount of sales tax, source of income, assets and other relevant
information, records and tax forms for individuals who are delinquent in the
payment of any child support as defined in Section 93-11-101 or who are under
investigation for fraud or abuse of any state or federal program or statute as
provided in Section 43-1-23.
SECTION 9. Section 81-5-55, Mississippi Code of 1972, is amended as follows:
81-5-55. (1) In no instance shall the name of any depositor, or the amount of his deposit, be disclosed to anyone, except to report to approved parties, such as credit bureaus, account verification services and others, the forcible closure of a deposit account due to misuse, such as fraud, kiting or chronic bad check writing or when required to be done in legal proceedings, for verification of public assistance in cases in which the Department of Human Services or the Division of Medicaid certifies that it has on file an effective written authorization from the depositor authorizing the disclosure of that information, for verification of the financial exploitation of a vulnerable person in cases in which the Attorney General submits a written authorization, or in case of insolvency of banks. The parties referred to in this section must be approved by the Commissioner of Banking and Consumer Finance and must satisfactorily demonstrate their reliability and credibility of their activities. Disclosure of depositor information to any affiliate or agent providing services on behalf of the bank shall not be considered disclosure of depositor information within the meaning of this section. The term "affiliate" means a corporation or business entity that controls, is controlled by or is under common control with the bank. The term "agent" means anyone who has an agreement, arrangement or understanding to transact business for the bank by the authority and on account of the bank, provided that the agreement binds the agent to the same degree of confidentiality of disclosure of bank records as the bank. Any violation of this provision shall be considered a misdemeanor and, upon conviction thereof, in any court of competent jurisdiction, the person shall be punished by a fine of not more than One Thousand Dollars ($1,000.00) or imprisoned in the county jail not more than six (6) months, or both, and in addition thereto, shall be liable upon his bond to any person damaged thereby.
(2) This section shall not be construed to prohibit the disclosure to the State Treasurer, State Auditor, Legislative Budget Office, Joint Legislative Committee on Performance Evaluation and Expenditure Review or the Department of Finance and Administration, of any information about any type of account or investment, including certificates of deposit, owned by any public entity of the State of Mississippi.
(3) * * * This section shall not be
construed to prohibit, or to impose liability for, the disclosure of
information to:
(a) The
Department of Human Services, the Child Support Unit of the Department of Human
Services, the Division of Medicaid, or their contractors or agents, pursuant to
Chapter 13 or Chapter 19, * * * Title 43, Mississippi Code of 1972 * * *; or
(b) The Department of Revenue pursuant to Sections 1 through 3 of this act.
SECTION 10. Section 11-35-23, Mississippi Code of 1972, is amended as follows:
11-35-23. (1) (a) Except for wages, salary or other compensation, all property in the hands of the garnishee belonging to the defendant at the time of the service of the writ of garnishment shall be bound by and subject to the lien of the judgment, decree or attachment on which the writ shall have been issued. If the garnishee shall surrender such property to the sheriff or other officer serving the writ, the officer shall receive the same and, in case the garnishment issued on a judgment or decree, shall make sale thereof as if levied on by virtue of an execution, and return the money arising therefrom to satisfy the judgment; and if the garnishment issued on an attachment, the officer shall dispose of the property as if it were levied upon by a writ of attachment. And any indebtedness of the garnishee to the defendant, except for wages, salary or other compensation, shall be bound from the time of the service of the writ of garnishment, and be appropriable to the satisfaction of the judgment or decree, or liable to be condemned in the attachment.
(b) If the garnishee is a bank or other financial institution and its indebtedness to the defendant consists of funds that the defendant has on deposit with the bank or other financial institution at the time of service of the writ of garnishment, then the garnishee shall be held to account for only such funds on deposit between the time of service of the writ of garnishment and the time of service of its answer to such writ, and the garnishee shall have no obligation to account for additional deposits accruing after the time of service of its answer. If the bank or other financial institution is not indebted to the defendant at the time of service of the writ of garnishment or does not have possession of property of the defendant at the time of service of such writ, then the bank or other financial institution may serve its answer and thereafter shall not be held to account for any indebtedness that arises subsequent to service of its answer or property that may come into its hands subsequent to such service. The financial institution may submit its Answer of Indebtedness at any time within the thirty (30) days allowed for response.
(2) The court issuing any writ of garnishment shall show thereon the amount of the claim of the plaintiff and the court costs in the proceedings and should at any time during the pendency of said proceedings in the court a judgment be rendered for a different amount, then the court shall notify the garnishee of the correct amount due by the defendant under said writ.
(3) (a) Except for judgments, liens, attachments, fees or charges owed to the state or its political subdivisions; wages, salary or other compensation in the hands of the garnishee belonging to the defendant at the time of the service of the writ of garnishment shall not be bound by nor subject to the lien of the judgment, decree or attachment on which the writ shall have been issued when the writ of garnishment is issued on a judgment based upon a claim or debt that is less than One Hundred Dollars ($100.00), excluding court costs.
(b) If the garnishee be indebted or shall become indebted to the defendant for wages, salary or other compensation during the first thirty (30) days after service of a proper writ of garnishment, the garnishee shall pay over to the employee all of such indebtedness, and thereafter, the garnishee shall retain and the writ shall bind the nonexempt percentage of disposable earnings, as provided by Section 85-3-4, for such period of time as is necessary to accumulate a sum equal to the amount shown on the writ as due, even if such period of time extends beyond the return day of the writ. Unless the court otherwise authorizes the garnishee to make earlier payments or releases and except as otherwise provided in this section, the garnishee shall retain all sums collected pursuant to the writ and make only one (1) payment into court at such time as the total amount shown due on the writ has been accumulated, provided that, at least one (1) payment per year shall be made to the court of the amount that has been withheld during the preceding year. Should the employment of the defendant for any reason be terminated with the garnishee, then the garnishee shall not later than fifteen (15) days after the termination of such employment, report such termination to the court and pay into the court all sums as have been withheld from the defendant's disposable earnings. If the plaintiff in garnishment contest the answer of the garnishee, as now provided by law in such cases, and proves to the court the deficiency or untruth of the garnishee's answer, then the court shall render judgment against the garnishee for such amount as would have been subject to the writ had the said sum not been released to the defendant; provided, however, any garnishee who files a timely and complete answer shall not be liable for any error made in good faith in determining or withholding the amount of wages, salary or other compensation of a defendant which are subject to the writ.
(4) Wages, salaries or other compensation as used in this section shall mean wages, salaries, commissions, bonuses or other compensation paid for employment purposes only.
(5) The circuit clerk may, in his or her discretion, spread on the minutes of the county or circuit court, as the case may be, an instruction that all garnishment defendants shall send all garnishment monies to the attorney of record or in the case where there is more than one (1) attorney of record, then to the first-named attorney of record, and not to the clerk. The payment schedule shall be the same as subsection (3)(b) of this section.
(6) All payments made pursuant to a garnishment issued out of the justice court shall be made directly to the plaintiff or to the plaintiff's attorney as indicated by the plaintiff in his or her suggestion for writ of garnishment. The employer shall notify the court and the plaintiff or the plaintiff's attorney when a judgment is satisfied or when the employee is no longer employed by the employer.
(7) If the plaintiff in a garnishment is the Department of Employment Security, the garnishee shall make monthly payments to the department until such time as the total amount shown due on the writ has been accumulated.
SECTION 11. Section 11-35-27, Mississippi Code of 1972, is amended as follows:
11-35-27. Except as otherwise provided in Section 11-35-23, garnishees shall, in all cases in the circuit or chancery court, answer on the first day of the return term, and, in the courts of justices of the peace, they shall answer by noon on the return day of the writ, unless the court, for cause shown, shall grant further time; and, if upon the answer of any garnishee, it appear that there is any estate of the defendant in the hands of any person not summoned, an alias writ may at once be issued, to be levied on the property in the hands of such person, or he may be summoned as garnishee.
SECTION 12. This act shall take effect and be in force from and after July 1, 2017.
