Disclosure to Certain Federal Officers and Employees

Insert February 2021

IRS Privacy, Governmental Liaison & Disclosure

Office of Disclosure – Training, Awareness & Quality Review

Department of the Treasury Internal Revenue Service

Disclosure Basics

• Internal Revenue Code Section §6103(a)• General Rule - Prohibits any officer or employee

of the United States from disclosing tax information:

“Tax Returns and Return Information are

confidentialexcept as provided by law.”

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IRC §6103(b) Definitions3DISCLOSURE - making known to any person, in any manner whatever, a tax return, or return information

TAX RETURN - any tax or information return, schedule, attachment, amendment, or supplement that is filed by a taxpayer

RETURN INFORMATION - includes any information received or collected by the Service that relates to a taxpayer’s return, liability, or potential liability for any tax

Disclosure Basics

Internal Revenue Code IRC §6103

•§6103(h)-Disclosure to certain Federal officers and employees for purposes of tax administration, etc.

•§6103(i)-Disclosure to Federal officers or employees for administration of Federal laws not relating to tax administration

•§6103(l)-Disclosure of returns and return information for purposes other than tax administration

Disclosure Basics

26 USC §6103(h)

Disclosure to certain Federal officers and employees for purposes of tax administration,etc.

1. Department of Treasury2. Department of Justice

In a matter involving tax administration, a return or return information shall be open toinspection by or disclosure to [DOJ] officersand employees… (including United Statesattorneys) personally and directly engagedin, and solely for their use in, any proceeding before a Federal grand jury or preparation for any proceeding (orinvestigation which may result in such aproceeding) before a Federal grand jury orany Federal or State court,…

Disclosure Basics

26 USC §6103(i) - Disclosure to Federal officers or employees for administration of Federal laws NOT related to tax administration

(1) Disclosure of returns and return information for use in criminal investigations

(A) In General – Except as provided in paragraph(6), any return or return information…shall, pursuant to and upon the grant of an ex parteorder by a Federal district court judge or magistrate judge….be open (but only to theextent necessary as provided in such order) toinspection by, or disclosure to, officers andemployees of any Federal agency who arepersonally and directly engaged…

(2) Disclosure of return information other than taxpayer return information for use in criminal investigations

(A) …upon receipt by the Secretary of a request…from the head of any Federal agency…or any United States attorney,…or any attorney in charge of a criminal division organized crime strike force, the Secretary shall disclose return information (other than taxpayer return information) to officers and employees of such agency….

Disclosure Basics

26 USC §6103(l) - Disclosure of returns and return information for purposes other than tax administration

6103(l) 5-7(5) Social Security Administration

(6) Disclosure of return information to Federal, State, and local child support enforcement agencies

(7) Disclosure of return information to Federal, State, and local agencies administering certain programs under the Social Security Act, the Food and Nutrition Act of 2008, or title 38, United States Code, or certain housing assistance programs

Disclosure Basics

(1) Disclosure of certain returns and return information to Social Security Administration and Railroad Retirement Board.

(2) Disclosure of returns and return information to the Department of Labor and Pension Benefit Guaranty Corporation

(3) Disclosure that applicant for Federal loan has tax delinquent account.

(4) Disclosure of returns and return information for use in personnel or claimant representative matters

6103(l) 1-4

26 USC §6103(l) - Disclosure of returns and return information for purposes other than tax administration

6103(l) 13-15(13) Disclosure to whistleblowers

(14) Disclosure of return information to United States Customs Service

(15) Disclosure of returns filed under section 6050(I)

Disclosure Basics

(8) Levies on certain government payments

(9) Disclosure of information to administer section 6311

(10) Disclosure of certain returns and return information to certain prison officials

(11) Disclosure of return information to Department of State for purposes of passport revocation under section 7345

(12) Qualified tax collection contractors

6103(l) 8-12

26 USC §6103(l) - Disclosure of returns and return information for purposes other than tax administration

6103(l) 20-22(20) Disclosure of return information to carry out Medicare part B premium subsidy adjustment and part D base beneficiary premium increase

(21) Disclosure of return information to carry out eligibility requirements for certain programs

(22) Disclosure of return information to Department of Health and Human Services for purposes of enhancing Medicare program integrity

Disclosure Basics

(16) Disclosure of return information for purposes of administering the District of Columbia Retirement Protection Act of 1997

(17) Disclosure to National Archives and Records Administration

(18) Disclosure of return information for purposes of carrying out a program for advance payment of credit for health insurance costs of eligible individuals

(19) Disclosure of return information for purposes of providing transitional assistance under medicare discount card program

6103(l) 16-19

Disclosure Penalties

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Disclosure Basics

Criminal Sanctions §7213A (UNAX)

• Misdemeanor• One year jail and a one thousand dollar fine or both

§7213 (unauthorized disclosure• Felony• Five years in jail, a five thousand dollar fine or both

Civil Sanctions §7431

• Permits civil damages for unauthorized disclosures

Disclosure Basics

Disclosure of return and return information for tax administration

IRC §6103(l)(1) and (l)(5) The Social Security Administration

IRC §6103(l)(2) The Department of Labor and Pension Benefit Guaranty Corporation

IRC §6103 (l)(3) Disclosure that applicant for Federal loan has tax delinquent tax account

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Disclosure Basics

Disclosures of return and return information for Tax AdministrationIRC §6103(l)(6) State and local child support enforcement

IRC §6103(l)(10) Treasury refund offsets

IRC §6103(l)(7), (11), (12), (19), (20) All relate to federal benefit programs

IRC §6103(l)(13) Dept. of Education – student loans

IRC §6103(l)(14) Disclosure of return information to United States Customs Service

IRC §6103(l)(18) & (20) Affordable Care Act13

Disclosure Basics

Disclosures of return and return information for Tax AdministrationIRC §6103(l)(14) Disclosure of return information to

United States Customs Service

IRC §6103(l)(17) Disclosure to National Archives and Records Administration

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Disclosure Basics