What is the Financial Record Matching (FRM) program?
State law authorizes the Wisconsin Department of Revenue (DOR) to enter into data match agreements with financial institutions for the purpose of identifying financial assets held by the financial institutions of delinquent state debtors.
How will the DOR operate the matching program?
The DOR has contracted with a third party vendor, Informatix, Inc., to establish data match agreements with financial institutions and to facilitate the exchange of state debtor information with financial institutions.
What is the methodology for performing the data match?
There are two reporting methods for financial institutions:
State Matching Option (the all accounts method): The financial institution provides a file on a quarterly basis. For each account maintained at the financial institution, the financial institution notifies the DOR of the name and social security number (SSN) or federal employer identification number (FEIN) of each person or business having an ownership interest in the account, together with a description of each person's interest.
A match will be performed against the delinquent debtor file. Upon the request of the DOR, the financial institution shall provide, for each debtor who matches information provided by the financial institution, the debtor's address of record, the debtor's account number, the account type and the account balance.
Financial Institution Matching Option (the matched accounts method): The DOR provides the financial institution a file on a quarterly basis. The file will be delivered via secure File Transfer Protocol (FTP) to be accessed only by the respective financial institution's Security or Privacy Officer or other individuals authorized in writing by the financial institution to receive the debtor file. The file contains the name and SSN or FEIN of delinquent debtors. The financial institution will return a file of matched accounts and partial matched accounts to the DOR. A matched account is defined as a full match of both SSN or FEIN and name. A partial match is defined as a match of SSN or FEIN alone. The return file will contain the name, SSN or FEIN, current address, account number, account type, and account balance of any person with an ownership interest.
What is the layout for the file transfers?
The program is modeled after the Financial Institution Data Match (FIDM) program currently operated by the Wisconsin Department of Children and Families for child support enforcement, and uses the same file layout as specified in the latest edition of the Financial Data Match Specifications Handbook (acf.hhs.gov/programs/cse/fct/fidm/dataspecs.pdf)
How often must the data match be conducted?
The match must be conducted quarterly.
Will financial institutions be reimbursed for expenses?
The financial institution may request reimbursement for costs associated with participating in the FRM program in an amount not to exceed $125 for each calendar quarter. The financial institution may submit an invoice to DOR within thirty days of the end of the calendar quarter or annually for the last four quarters.
Which financial institutions must participate in the data match program?
The following financial institutions doing business in this state must participate in the program:
Banks or savings associations
Federal or State credit unions
Benefit associations, insurance companies, safe deposit companies, money market mutual funds or similar entities authorized to do business in Wisconsin.
"Doing business in this state" is further defined by DOR to include:
Financial institutions doing business in Wisconsin with a physical presence in Wisconsin.
Financial institutions doing business with a customer who has a Wisconsin address. This means that the financial institution may not have a physical presence in the state but does business in the state by offering Internet banking options.
What types of accounts are subject to the data match program?
Account means a demand deposit account, checking account, negotiable withdrawal order account, savings account, time deposit account, or money market mutual fund account.
INSURANCE COMPANIES PLEASE NOTE: The definition of financial institution includes insurance companies. The definition of bank account (sec. 71.91 (8) (a) 1, Wis. Stats.) is limited to "a demand deposit account, checking account, negotiable withdrawal order account, savings account, time deposit account, or money market mutual find account." Insurance companies are not required to participate if they do not have these types of accounts.
Which financial institution customers are subject to the data match program?
Debtors who have a Wisconsin address and the financial institution is doing business in the state, either with a physical location or via Internet banking.
A debtor who has moved out of Wisconsin but does business with a Wisconsin affiliated financial institution.
Can financial institutions be held liable for the release of account information relating to the FRM program and any levies that may result?
No, sec. 71.91(8) (f), Wis. Stats., establishes that a financial institution that provides information to the DOR under the FRM program is not liable to any person for disclosing information to the DOR or for any other action that the financial institution takes in good faith to comply with the program.
When must a financial institution provide data match information to the DOR?
Financial institutions must provide information within 120 days from the date that the information is due, as established in the financial institution agreement, or within 120 days from the date that the information is requested by the state.
Failure to provide the required information may result in a penalty of $100 for each occurrence. The DOR may also commence civil proceedings to enforce the FRM program if a financial institution fails to provide the required information in a timely manner.
How will account information be used by the DOR?
The account information will be reviewed as an account is reviewed for collection action. The information may lead to a levy being served on the financial institution.
NOTE: The Service Address provided in Attachment A is the address where a levy will be mailed.
If a financial institution has any overdraft charges, or collateral outstanding, can the financial institution offset these before sending the levied funds to the DOR?
Overdraft Protection: A financial institution can offset funds from one account to cover an overdraft in another account if the account is identified as security.
Secured Loan: A financial institution can offset a loan or overdraft charges if the account is documented as security. Example: If an individual has a savings account that is security for a loan, only the funds in excess of that security can be seized.
Delinquent Loan: A financial institution can transfer funds from a bank account to cover delinquent loan payments if the account is identified as security, if there is a loan default, or the financial institution has taken appropriate action to satisfy the delinquent loan with the funds in the bank account.
Certificate of Deposit: A financial institution can offset funds held in a certificate of deposit (CD) used as collateral for a loan up to the amount of the loan. Funds in excess of the loan are subject to levy. This also applies to perfected security interest.
Are IRA accounts eligible for levy?
Traditional SEP-IRA, SIMPLE IRA, and ROTH IRA accounts are eligible for levy. The account holder is responsible for all penalties resulting from the early withdrawal of funds due to a DOR levy.
Federal law exempts taking 401 (k) and 403 (b) accounts.
Should safe deposit box account information be included in the data match file?
No, this information should not be included. The definition of account does not include safe deposit boxes.
How does a financial institution handle a levy that includes protected funds?
Protected funds are not subject to DOR levy. Protected funds include:
Social Security and Supplemental Security Income issued by the Social Security Administration
Veterans benefits administered by the U.S. Department of Veterans Affairs
Federal railroad retirement unemployment and sickness benefits administered by the Railroad Retirement Board
Civil Service Retirement System and federal employee Retirement System benefits administered by the Office of Personnel Management
If funds are unprotected, the financial institution must honor the levy.