California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 2.6 - Administration of Franchise and Income Tax › Subchapter 5 - Collection of Tax › Article 4 - Miscellaneous Provisions › Section 19266 - Financial Institution Record Match

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Overview. Pursuant to Revenue and
					 Taxation Code section
					 19266
					 and this regulation, the Franchise Tax Board shall operate and administer a
					 Financial Institution Records Match (FIRM) program, which utilizes automated
					 data exchanges to the maximum extent feasible to identify accounts of
					 delinquent tax and non-tax debtors held at financial institutions doing
					 business in California.
(b) FIRM
					 Program Administrator. The Franchise Tax Board and its designated third party
					 administrator (collectively, "FIRM Program Administrator") shall operate and
					 administer the quarterly data exchange under the FIRM Participation Schedule
					 set forth in subsection (h), pursuant to FTB Publication 2057 (rev. 08-2013),
					 FIRM General Information Booklet, hereby incorporated by reference.
(c) Employment of a Third Party Vendor
					 ("Transmitter") by a Financial Institution. A financial institution may use a
					 Transmitter for the automated data exchanges. If a Transmitter is used, the
					 financial institution shall provide the name and contact information of its
					 Transmitter to the FIRM Program Administrator on FTB Form 2060 PC (rev.
					 08-2013), Election, hereby incorporated by reference. By designating a
					 Transmitter on FTB Form 2060 PC, Election, and filing it with the FIRM Program
					 Administrator, the financial institution grants the FIRM Program Administrator
					 permission to exchange data and records as well as communicate with the
					 Transmitter on behalf of the financial institution. The use of a Transmitter by
					 a financial institution does not relieve that financial institution of
					 liability for any penalty under subdivision (g) of Section
					 19266
					 of the Revenue and Taxation Code for failure to provide one or more
					 records.
(d) Match Methodology. The
					 financial institution shall complete and submit to the FIRM Program
					 Administrator FTB Form 2060 PC, Election, which establishes the financial
					 institution's chosen method of data matching with the Franchise Tax Board using
					 either Method 1 or Method 2.
(1) Method 1.
					 Pursuant to the FIRM Participation Schedule set forth in subsection (h), the
					 financial institution or its Transmitter shall submit a data file via the
					 secured internet transfer protocol set forth in FTB Publication 2057, FIRM
					 General Information Booklet to the FIRM Program Administrator that contains
					 records of all open accounts held by the financial institution ("All Accounts
					 File"). Submitted files are matched against the Franchise Tax Board delinquent
					 tax and non-tax debtor file ("Debtor File") by the FIRM Program Administrator.
(A) A financial institution shall select
					 Method 1 only if it does not have the technical ability to match the data
					 provided by the Franchise Tax Board or the ability to employ a third-party data
					 processor to match the data provided by the Franchise Tax Board as described in
					 Method 2.
(B) Subject to the
					 requirements stated in subsection (d)(1)(A), a financial institution may
					 utilize a Transmitter to assist in submitting a data file via the secured
					 internet transfer protocol set forth in FTB Publication 2057, FIRM General
					 Information Booklet to the FIRM Program Administrator.
(C) For all subsequent quarters, the
					 financial institution or its Transmitter shall submit a file containing either
					 records of accounts opened, closed, or changed during a particular quarter
					 ("Update File"), or an All Accounts File.