Yes, we recommend mailing a copy of a state or federal tax levy to your customer before responding, unless the levy prohibits your bank from doing so.

The Illinois Banking Act requires banks to mail a copy of a “subpoena, summons, warrant, citation to discover assets, or court order” before responding, “unless the bank is specifically prohibited from notifying the person by order of court or by applicable State or federal law.” While a “levy” is not specifically named among the documents that trigger this notice requirement, we believe that a levy is the functional equivalent of a warrant or citation to discover assets and should be similarly mailed to the customer before responding.  

For resources related to our guidance, please see:

• Illinois Banking Act, 205 ILCS 5/48.1(c) (“[A] bank may not disclose to any person, except to the customer or his duly authorized agent, any financial records or financial information . . . unless: . . . (2) the financial records are disclosed in response to a lawful subpoena, summons, warrant, citation to discover assets, or court order which meets the requirements of subsection (d) of this Section; . . .”)

• Illinois Banking Act, 205 ILCS 5/48.1(d) (“A bank shall disclose financial records under paragraph (2) of subsection (c) of this Section under a lawful subpoena, summons, warrant, citation to discover assets, or court order only after the bank mails a copy of the subpoena, summons, warrant, citation to discover assets, or court order to the person establishing the relationship with the bank, if living, and, otherwise his personal representative, if known, at his last known address by first class mail, postage prepaid, unless the bank is specifically prohibited from notifying the person by order of court or by applicable State or federal law.”)