SB1786 EngrossedLRB099 10339 HLH 30566 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-760 as follows:
 
7    (20 ILCS 2505/2505-760 new)
8    Sec. 2505-760. Surrender of property; indemnification.
9    (a) Any person or entity in possession of, or obligated
10with respect to, property or rights to property subject to
11levy, upon which a levy has been made, who, upon demand by the
12Director, surrenders such property or rights to property or
13discharges such obligation to the Director shall, at the
14Director's discretion, be discharged from any obligation or
15liability to the delinquent taxpayer and any other person with
16respect to such property or rights to property arising from
17such surrender or payment, but not in an amount in excess of
18the amount of property or rights to property surrendered to the
19Director.
20    (b) The General Assembly recognizes that financial
21institutions, as defined by Section 2 of the Illinois Banking
22Act, are in a unique position to assist with the identification
23of fraud pertaining to refunds deposited in their accounts. The

 

 

SB1786 Engrossed- 2 -LRB099 10339 HLH 30566 b

1General Assembly further recognizes that, due to the
2relationship between financial institutions and their
3customers, financial institutions are reluctant to turn over
4funds they have identified as fraudulent without assurances
5that they will not be held liable in the event that refunds
6were identified as fraud in error. In order to facilitate the
7recapture of refunds that have been identified as having been
8issued as a result of fraud, the Department has the authority,
9but is not required, to indemnify any financial institution
10that returns funds to the Department at the request of the
11Director based on the bona fide belief that the funds held by
12the financial institution were deposited as a result of fraud
13committed against another taxpayer, the Department, or another
14agency of the State of Illinois.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.