Financial Institutions Will be Required to Assist the Department of Revenue with Collections by Implementing a “Data Match Program”

By Elayna Matthews, Creditors’ Rights & Bankruptcy and Litigation Attorney 

In 2017, the Oregon Legislature adopted Senate Bill 254 at the request of the Oregon Department of Revenue (“DOR”). The purpose of the new law is to allow the DOR to more easily collect from delinquent taxpayers by asking financial institutions (as defined under the new law) whether delinquent taxpayers have accounts at that financial institution before issuing a garnishment to collect money in that taxpayer’s accounts. The financial institution must respond with a list of any account holders at that institution who are also on the DOR’s delinquent taxpayer list. The new law becomes effective on July 1, 2018.

To comply with the statute, Oregon financial institutions will now be required to participate in a “data match system” program with the DOR. The DOR will have the right to send any financial institution a list of the names of delinquent taxpayers no more often than once per quarter (four times per year). The financial institution will have to implement and utilize a “data match system” to review its account holders against the DOR’s list of delinquent taxpayers. The financial institution must then inform the DOR if any of any matches; in other words, any delinquent taxpayers that have accounts with the financial institution. This will allow the DOR to know where to send tax garnishments and collect from the accounts of delinquent taxpayers much more efficiently and effectively.

The new law required the Department of Revenue to draft administrative codes and guidance for implementing the law, which are also due on July 1, 2018. However, no administrative codes have yet been proposed or enacted at this time.

To read the full Senate Bill, click here. [link: https://olis.leg.state.or.us/liz/2017R1/Downloads/MeasureDocument/SB254/Enrolled]

Elayna Matthews is an associate in the Creditors’ Rights & Bankruptcy and Litigation practice groups. The information in this article is not intended to provide legal advice. For a professional consultation, please contact Elayna Matthews or Erich Paetsch at Saalfeld Griggs PC.  503.399.1070.  elayna@sglaw.com © 2018 Saalfeld Griggs PC

Elayna Zammarelli

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