Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-21701 - Enhanced collection tools

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This section explains procedures for electronic
			 notice and order to withhold and deliver service, and mitigation options for
			 financial institutions required to respond to service by the department of
			 revenue (department). This new service option is in addition to other forms of
			 service authorized in
			 RCW
			 82.32.235 and described in WAC
			 458-20-217(4).
			 Electronic service under this rule will be referred to as
			 "E-Withhold."
(2)
What is
			 E-Withhold?
E-Withhold is a data-driven effort to identify assets that
			 may satisfy unpaid tax lien liabilities.
			 RCW
			 82.32.235 provides thirty days for financial
			 institutions to respond to E-Withhold service. The department will perform an
			 additional review/validation after the initial response is received from a
			 financial institution to ensure accuracy before directing a financial
			 institution to withhold and remit funds.
The department has developed detailed instructions for
				E-Withholds, which include information about file formats, response codes,
				payment references, access to the secured file transfer service, and other
				details needed by financial institutions. This information can be viewed at
				dor.wa.gov/E-Withhold.
(3)
Who can be served by E-Withhold?
E-Withhold service applies to
			 "financial institutions." Financial institutions are defined as banks, trust
			 companies, mutual savings banks, savings and loan associations, or credit
			 unions authorized to do business and accept deposits in this state under state
			 or federal law.
(4)
How will
			 E-Withholds be served?
The department will serve a list of all or a
			 portion of all properly filed and unsatisfied tax warrants (the E-Withhold
			 list) to financial institutions by secured file transfer (SFT) service. Tax
			 warrants with established and maintained payment agreements, or taxpayers under
			 federal bankruptcy protection at the time the list is created will not be
			 included. The department will not serve an E-Withhold list to a financial
			 institution more than once per calendar month. The department will send an
			 e-mail notification to a financial institution when service has occurred, and
			 also send a courtesy copy via U.S. mail. The department will maintain contact
			 information for each financial institution for E-Withhold service and
			 processing issues. Financial institutions should notify the department of
			 changes to contact information using the e-mail address referenced in
			 subsection (7) of this section.
(5)
What is included on an E-Withhold list?
A list will contain
			 information provided on a manually issued notice and order to withhold and
			 deliver plus tax identification numbers provided to the department by
			 taxpayers. Financial institutions served via E-Withhold must ensure that the
			 data provided remains confidential and secure per
			 RCW
			 82.32.330.
Assets subject to E-Withhold include, but are not limited
				to:
Checking, saving, or share accounts;
Time or certificates of deposit;
Investment or brokerage accounts;
Contents of safe deposit boxes;
Credit card receipts; and
Contract collections.
Examples of assets exempt from E-Withhold are described in WAC
				458-20-217(4).
(6)
When are funds withheld
			 and due to the department?
Funds withheld through E-Withhold must be
			 remitted by the thirty-first day after official service. For example, if
			 official service occurs on May 15th, the financial institution must remit the
			 withheld funds by June 15th. Official service occurs when the E-Withhold list
			 is placed into the financial institution's designated SFT folder. The SFT
			 service records a date and time stamp for actions occurring on it.
The department has established response steps and dates between
				official service and final remittance in order to verify/validate potential
				withholding. These response steps and dates are provided in the E-Withhold
				procedures document at dor.wa.gov/E-Withhold. Instructions for the contents of
				safe deposit boxes are also included in the procedures document at
				dor.wa.gov/E-Withhold.
(7)
What if a financial institution can't meet E-Withhold procedural
			 requirements?
When a financial institution faces significant issues in
			 meeting any of the requirements of this rule or the operational procedures
			 referenced in subsection (2) of this section, it must submit a written request
			 to the department for special handling. The request must identify the
			 condition(s) creating the challenge(s). The department will work with financial
			 institutions on a case-by-case basis to develop a mitigation plan that will
			 achieve the desired outcome of locating and recovering assets to pay filed tax
			 liens.
Criteria the department will consider when analyzing ways to
				mitigate impact include:
A financial institution's lack of staff or technical inability
				to respond to electronic service; and
Membership limits or restrictions that significantly reduce the
				potential of locating assets for some or most of the delinquent taxpayers,
				geographic remoteness from large numbers of taxpayers.
Requests for a mitigation plan or other E-Withhold questions
				should be sent via:
E-mail to:
dorewithholds@dor.wa.gov
U.S. mail to:
Department of Revenue
Attn: Compliance Division - CRRT
P.O. Box 14699
Tumwater, WA 98511-4699
Statutory Authority:
				  RCW
				  82.01.060 and
				  82.32.235. 10-07-035, §
				  458-20-21701, filed 3/10/10, effective
				  4/10/10.