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Part 11. Communications and Liaison

Chapter 4. Office of Governmental Liaison

Section 1. Governmental Liaison Operations

11.4.1  Governmental Liaison Operations

11.4.1.1  (03-01-2007)
History of Governmental Liaison

  1. The Governmental Liaison program facilitates the exchange of data and fosters partnerships with federal, state and local agencies for the purpose of improved tax administration.

  2. The Office of Governmental Liaison, formerly called the Office of FedState Relations, began as a limited information exchange program in the 1920's and has expanded to a major liaison program to foster and maintain joint tax administration projects to achieve tax compliance and service objectives via partnerships with federal, state and local governments.

  3. In 1991, the office of FedState Relations was created in the IRS National Office. From 1994-1996, FedState was institutionalized in the field with the creation of FedState regional, district office and service center Program Managers.

  4. In July 2000, the program was expanded, with Governmental Liaisons covering the various state(s) reporting to Governmental Liaison and Disclosure (GLD) Area Managers, and a centralized structure headquartered in Washington, D.C. At the same time, the Congressional Affairs Program was added to the duties of the field Governmental Liaisons.

  5. In October, 2005, Governmental Liaison became a part of Governmental Liaison and Disclosure in the Communications, Liaison and Disclosure office of the Small Business/Self-Employed Operating Division. The Governmental Liaison program supports all operating divisions to achieve IRS goals. Governmental Liaison has headquarters, area, and field staff.

11.4.1.2  (03-01-2007)
Mission of the Office of Governmental Liaison

  1. The mission of the Office of Governmental Liaison is to support IRS compliance, enforcement and service to taxpayers by partnering with federal, state and local governmental agencies; to improve tax administration at all levels of government; ensure IRS employees and external partners properly protect confidential tax records and other sensitive information, and address the Public's right to access by providing information consistent with applicable laws.

  2. The Office of Governmental Liaison carries out its mission by:

    1. Working jointly with the Operating Divisions in the formulation of compliance, enforcement and customer service initiatives.

    2. Working with Legislative Affairs and Taxpayer Advocate Service (TAS) to deliver an effective Congressional Affairs program.

    3. Working with Federal, State and Local governments to administer the exchange of tax and other information.

11.4.1.3  (03-01-2007)
Governmental Liaison Roles and Responsibilities

  1. In order to achieve the mission of the Office of Governmental Liaison, roles and responsibilities have been established.

11.4.1.3.1  (03-01-2007)
Headquarters Governmental Liaison Office

  1. Assists the Operating Divisions in the formation, development, testing, and implementation of new initiatives.

  2. Provides national oversight and coordination of the Governmental Liaison Business Template processes and manages the reporting process.

  3. Serves as the point of contact for the Operating Division staffs.

  4. Develops policy and provides oversight for the overall IRS Governmental Liaison program, and identifies legal and disclosure issues for initiatives.

  5. Serves as liaison between IRS headquarters and federal, state and local government agencies (for non-TEGE related activities).

  6. Has oversight for Governmental Liaison training.

  7. Measures overall program effectiveness.

  8. Serves as primary liaison with the Federation of Tax Administrators and the Multi-State Tax Commission.

  9. Coordinates IRS training classes and materials that are offered for State and Local government agency personnel. This information is available on the Web at: http://sbse.web.irs.gov/cl2/gld/GL/Training4States/GLTraining4States.htm

  10. Coordinates with Legislative Affairs staff to oversee and implement the GL portion of the Congressional Affairs Program. Additional information is available on the Web at: http://cl.no.irs.gov/la/BranchB/CAP/index.htm

11.4.1.3.1.1  (03-01-2007)
Customer Service Strategy

  1. The Headquarters Office of Governmental Liaison Customer Service Strategy (HQ GL CSS) is the over-arching plan to ensure effective communications with internal and external stakeholders by:

    1. Sharing information and facilitating the implementation of programs involving Field GL staff, Stakeholder Liaison (SL), other SB/SE components, and other operating divisions.

    2. Collaborating with CLD components to identify activities and develop appropriate strategies to consolidate key messages into one unified voice as appropriate for diverse audiences.

    3. Sharing information with Congressional offices, Federal, state and local governmental agencies, Federation of Tax Administrators (FTA), Multi-State Tax Commission (MTC), and other external stakeholders as appropriate.

  2. Customer Service Strategy Objectives.

    1. Support the Strategic Plan.

    2. Support the SB/SE CLD Program Letter objectives.

    3. Establish a clear, strategic direction with direct links to the resources and activities of SB/SE and the IRS operating divisions.

    4. Develop appropriate strategies to identify and resolve emerging issues identified both in the Field and those which surface in the CLD Issue Management Resolution System(IMRS) and direct work flow to the appropriate process.

    5. Identify partnering opportunities with Stakeholder Liaison.

    6. Encourage suggestions for increased collaboration between federal and state taxing agencies by IRS employees and external stakeholders.

    7. Increase service-wide awareness of GL activities.

    8. Deliver key messages to internal and external stakeholders so they clearly understand expectations and desired outcomes.

    9. Enhance and increase accessibility to GL products and documents available to internal stakeholders using intranet – GLD web site, GLD shared drive, GL Inventory Database, public folders, as appropriate.

    10. Coordinate with Legislative Affairs staff to oversee and implement the GL portion of the Congressional Affairs Program.
      http://cl.no.irs.gov/la/BranchB/CAP/index.htm

    11. Maintain a working relationship/coordination between Governmental Liaison and Taxpayer Advocate Service (TAS).

  3. Customer Service Strategy Components.

    1. Business Template Process. See IRM 11.4.1.13. also See Exhibit 11.4.1-5., or the intranet site at: http://sbse.web.irs.gov/cl2/gld/GL/default.htm .

    2. HQ GL Communiqu - Available on the GL Shared Drive.

      1) A GL Communiqu is accessible by every GL employee. The Communiqúu is used by GLs to solicit external partner involvement in a project, as well as other potential uses.
      2) The GL Communiqu was developed to streamline communications with the field. The Communiqu is the vehicle used to provide specific instructions to the field on any requested action or project implementation. This will include all supporting documents i.e. MOUs, templates, fact sheets, communication plans etc.
      3) A Communiqu should be created whenever information or actions need to be solicited from or communicated to the field by HQ GL.
      4) The Communiqu should be updated by HQ as necessary to ensure delivery of messages to the field.
      5) See Exhibit 11.4.1-1. for an example of a Communiqu.

    3. HQ GL Message Guides.

      1) Available on the Intranet at http://sbse.web.irs.gov/CommunicationsCenter/MessageGuide/default.htm
      2) The message guide, in conjunction with prepared Power Point slides, are available to anyone who needs information about a key HQ GL project/program. Message Guides will be required for any project or program that could have an impact outside of GLD.
      3) The message guides are updated monthly to reflect current actions/status.
      4) See Exhibit 11.4.1-2. for message guide template and procedures.

    4. HQ GL Analysts Toolkit - Available in the HQ GL folder in Outlook Public Folders.

      1) The Toolkit pages will be available only to HQ GL.
      2) The Toolkit serves as a "Desk Guide" for HQ GL programs and projects. It is to be used by the analyst who serves as "back-up" for the program/project. .The toolkit can also be used when transferring programs among analysts.

    5. GL Inventory Database.

      1) The GL Inventory and instructions are located on the GL shared drive at \/\/\/cov0010cpshr1\/common\/SBSE\/CLD\/GLD. The inventory is a GL and management tool intended to house a complete list of all GL projects and programs nationwide.

    6. GL Shared Drive.

      1) Centralized repository for all agreements, instructions, templates and other necessary information for GLs.
      2) Once mapped to the shared drive, go to the GL folder and view all the agreements/ MOUs in scanned PDF format.
      3) There is a "shared drive index" document on the main level of the shared drive. This is for searching files by keyword of the file name.
      4) See Exhibit 11.4.1-3. for shared drive "mapping" instructions.

    7. GL Web Page – Contains current information regarding the IRS Governmental Liaison Program and activities. http://sbse.web.irs.gov/CL2/gld/GL/default.htm

11.4.1.3.1.2  (03-01-2007)
Tax Gap Initiative

  1. Introduction

    1. The tax gap is the difference between what taxpayers should have paid and what they actually paid on a timely basis.

    2. The tax gap was estimated at $345 billion based on data compiled by National Research Program (NRP) for Tax Year 2001. IRS enforcement activities and late payments recovered about $55 billion which left a net tax gap of $290 billion for Tax Year 2001.

    3. More information on the tax gap is located on the Internet at: www.irs.gov/newsroom/article/0,,id=158619,00.html and on the Intranet at: http://sbse.web.irs.gov/TaxGap/default.asp

  2. Governmental Liaison Role- To implement the IRS strategy to reduce the tax gap by:

    1. Developing compliance programs to reduce the tax gap by working with internal and external stakeholders.

    2. Changing attitudes about the tax gap through education and outreach with stakeholders.

    3. Identifying new stakeholders and resources that can be leveraged to implement a tax gap strategy.

      1) Governmental Liaison tax gap initiatives are posted in the Key Governmental Liaison Programs section of the Intranet at: http://sbse.web.irs.gov/cl2/gld/GL/Initiatives/Key%20GL%20Programs.htm
      2) Local Governmental Liaisons should implement these initiatives with their internal and external stakeholders.
      3) Questions about Governmental Liaison initiatives should be directed to the Governmental Liaison Headquarters analyst assigned to the tax gap.
      4) Contact information for the analyst assigned to the tax gap is located on the Intranet under Governmental Liaison Headquarters Staff at: http://sbse.web.irs.gov/cl2/gld/resources/GLD%20Organization/GL%20programs_contacts.htm .

11.4.1.3.2  (03-01-2007)
Governmental Liaison and Disclosure Area Managers

  1. Area Managers (AMs) for Governmental Liaison and Disclosure (GLD) work for the Director, Governmental Liaison and Disclosure. They manage, direct, and oversee the work of field Governmental Liaison and Disclosure personnel:

    1. Governmental Liaisons (GLs).

    2. Disclosure Managers (DMs) and their staff.

  2. Area Managers implement the GL program by:

    1. Communicating and clarifying national policies, guidelines, and initiatives.

    2. Partnering and networking with Operating and Functional division (OD/FD) area managers on national initiatives.

    3. Partnering and networking with federal, state, and local government agency executives responsible for operations in the GL area.

    4. Representing GLD at internal and external conferences and meetings.

    5. Leading teams and sub-teams working on national or area initiatives and projects.

    6. Coordinating input and feedback on national, area, and local initiatives and projects.

11.4.1.3.3  (03-01-2007)
Governmental Liaisons

  1. Governmental Liaisons (GLs) are the primary point of contact for managing IRS relationships with:

    1. Federal, state, local governments in their assigned state(s), and Insular Territories.

    2. Congressional offices, as assigned, and Insular Territories on IRS policy issues.

  2. Governmental Liaisons implement the GL program in their assigned states. To achieve goals of national, area, and local tax compliance or service projects, they perform key activities including, but not limited to the following:

    1. Manage the Governmental Liaison Data Exchange Program (GLDEP) locally.

    2. Implement national or area projects or initiatives.

    3. Assist OD/FDs in developing Governmental Liaison Business Templates for new initiatives and projects.

    4. Facilitate development of the Governmental Liaison Business Template for projects requested by federal, state, and local government agencies.

    5. Assist OD/FDs with meetings, outreach efforts, and initiatives involving federal, state, and local government agencies.

    6. Consult with Disclosure when planning or implementing Governmental Liaison initiatives that involve the exchange of tax return information.

    7. Ensure that new initiatives and projects are added as addendum to Implementing Agreements and/or covered by Memorandums of Understanding as needed.

    8. Communicate with federal, state, and local government agencies about IRS OD/FD’s strategic initiatives.

    9. Communicate to key internal stakeholders about federal, state, and local government initiatives, in coordination with TAS.

    10. Key IRS messages are developed in coordination with TAS to communicate to Congressional staffs.

    11. Respond to staff and constituent questions about IRS policy and procedures, working with TAS to ensure appropriate issues are assigned and controlled on the Taxpayer Advocate Management Information System (TAMIS).

    12. Represent IRS at meetings with Congressional staff in conjunction with TAS.

    13. Represent IRS at meetings with federal, state, and local governments.

    14. Prepare routine briefings for GLD Area Manager; provide input and feedback from stakeholders regarding existing and potential IRS initiatives and projects.

    15. Provide information to stakeholders about IRS training offered for state and local government agency personnel.

    16. Identify the Members of Congress whose state or district are impacted by the disaster. Provide information to Congress on the steps being taken to assist disaster victims with their tax affairs.

      Note:

      For information, See IRM 11.4.1.22. Disaster and Emergency Situations.

  3. The Governmental Liaison (GL) is the primary spokesperson for the agency at the local level, for U.S. Congressional offices. This is part of the Congressional Affairs Program (CAP). The GL communicates on a monthly basis with the local U.S. Congressional offices to disseminate information from the Legislative Affairs Division and the Operating and Functional Divisions. The Local Taxpayer Advocate (LTA) is the primary CAP contact for casework with the Congressional office. Congressional correspondence that does not involve casework or individual taxpayer information is the responsibility of the GL.

  4. The following products are useful to the GL:

    1. Overview of IRS for Congressional Staff - This brochure can be used to provide a quick orientation to the IRS for new Congressional delegations or staff members. Although it can be viewed from this link, copies should be ordered from Publishing Services as this is a specialty print document. http://cl.no.irs.gov/la/BranchB/CAP/An%20Overview%20of%20the%20IRS%20for%20Cong%20Staff.pdf

    2. Congressional Update - This is a newsletter for delegations issued quarterly. Current and back issues are available from this link. http://cl.no.irs.gov/la/BranchB/CAP/CongUpdate%20Quarterly%20News/GL%20Quarterly.htm

    3. The following links can help GLs with their Congressional Correspondence:
      1) Legislative Affairs Congressional Correspondence page http://cl.no.irs.gov/la/Branch%20A/Index.htm
      2) IRM 11.53.3, Guide to Congressional Correspondence http://publish.no.irs.gov/cat12.cgi?request=CAT1&catnum=38765
      3) Issue Letter Index http://cl.no.irs.gov/la/BranchB/CAP/Issue%20Letter%20Catalog/Issue.htm
      4) CAP Message Catalog (from Eric Hall) http://cl.no.irs.gov/la/BranchB/CAP/CAP%20Message%20Catalog/Catalog.htm
      5) FY 2007 IRS Budget in Brief is an analysis of the administration's budget proposal for IRS. http://communications.no.irs.gov/ProductIndex/EmployeeNews/PDF/FY07BudgetinBrief.pdf

    4. CAP pre-visit check sheet - This is a useful tool from Legislative Affairs to help plan a CAP visit. http://cl.no.irs.gov/la/BranchB/CAP/index.htm

    5. CAP contact database user guide provides information on using the CAP Contact Database. Every GL congressional contact should be documented. http://cl.no.irs.gov/la/BranchB/CAP/DB%20Users%20Guide.doc

  5. For additional information and a definition of Insular Territories, See IRM 11.4.1.7. Disclosure of Tax Information to State Tax and other Agencies.

11.4.1.4  (03-01-2007)
IRS Roles and Responsibilities in Support of Governmental Liaison

  1. Governmental Liaison (GL) programs, initiatives, and projects often involve one or more Operating and Functional Divisions (OD/FDs) and external stakeholders or partners.

    1. Disclosure Managers and staff provide technical assistance on existing and potential agreements involving tax information disclosure to accomplish IRS and/or Federal, State and local agency objectives.

    2. Communications, Liaison, and Disclosure (CLD) staff provides technical assistance and/or partner with GL.
      (1) Stakeholder Liaison (SL) staff manage relationships with Small Business and Self-Employed (SB/SE) taxpayer stakeholders and organizations. SL and GL staffs frequently provide support at joint outreach events where IRS information is shared with small business and Federal, state and local stakeholders. SL and GL headquarters and field staff play a critical role in Disaster Assistance programs, coordinating locally to help affected taxpayers.
      (2) Communications staff provides products and services that enhance delivery of SB/SE's program messages, available for GLs to share with Federal, state, and local agencies and Congressional stakeholders.
      (3) Data Services staff manage the critical Governmental Liaison Data Exchange Program (GLDEP), creating and maintaining the routine disclosure of a vast amount of federal tax data to qualified federal, state and local governments.

    3. Legislative Affairs staff provides information about key IRS messages, written for Congressional audiences. GLs are the field presence for IRS communication with local Congressional staffs. Legislative Affairs also provide assistance with responses to local "hot topics," such as workload realignment that might affect IRS operations. They coordinate with GL headquarters staff to oversee and implement the GL portion of the Congressional Affairs Program.

    4. LTAs and TAS partner with GL in implementing the Congressional Affairs Program. In addition to working Congressional inquiries involving taxpayer account issues, the LTA and TAS partner with GL to conduct Congressional Liaison meetings, Congressional Caseworker Briefings, and other outreach to Congressional staffs.

    5. OD/FD staff at all levels provide resources and technical expertise necessary to create and implement GL initiatives and projects to achieve tax compliance, service goals and enhance tax administration. They have the technical and procedural tax expertise needed by the GL field staff to respond to Congressional inquiries. Memoranda of Understanding with SB/SE and Wage & Investment (W&I) provide a framework for any assistance GLs need.

11.4.1.5  (03-01-2007)
Partnering with Federal, State and Local Government Agencies

  1. The Office of Governmental Liaison and Disclosure is responsible for the relationship between the Internal Revenue Service and federal, state and local governmental (fslg) agencies. The Governmental Liaison is the primary contact for fslg agencies and works to improve tax administration through effective partnering.

  2. Governmental Liaisons develop relationships with fslg personnel who have the ability and authority to make decisions. The Governmental Liaisons facilitate projects between fslg agencies and IRS Operating and Functional Divisions. In doing so, the GL

    1. Coordinates meetings between IRS and fslg agency staff.

    2. Arranges joint training sessions.

    3. Manages the Governmental Liaison Data Exchange Program (GLDEP).

    4. Acts as liaison between the IRS and fslg agencies for other tax administration matters.

  3. The FedFed program is a program where Governmental Liaison and Disclosure work with other federal agencies on developing and initiating joint projects. The GL will act as a liaison between the IRS and federal agencies. To further the mission and objectives of the Service, it is critical that we partner with other federal agencies as a means of leveraging our resources to achieve our strategic goals. The FedFed Program provides a structured process for working with other federal agencies on initiatives. Governmental Liaison has a well-established structure to promote interactions with state agencies. The FedFed Program will use the existing FedState model to facilitate the establishment of relationships with other federal agencies. A FedFed Council with a GL from each area has been established to develop ideas on how to involve the field GL in the FedFed Program. The FedFed Program will provide a systemic approach to developing initiatives with other federal agencies in support of the Operating Divisions’ priorities. The program will help ensure that IRS has a centralized process to appropriately coordinate new federal initiatives and provide a Servicewide inventory of current agreements and projects.

  4. The Governmental Liaison works closely with the Disclosure Manager in activities where federal tax information (FTI) is provided to state tax agencies. The Disclosure Manager maintains, coordinates, reviews and approves the following:

    1. Memorandums of Understanding (MOUs) negotiated by the GLs

    2. Implementation Agreements

    3. Governmental Liaison Data Exchange Program (GLDEP) enrollment agreements

    4. Tax data element selection forms

    5. Exchanges of tax information

11.4.1.5.1  (03-01-2007)
Partnering Examples for Improving Tax Administration

  1. Joint Federal State electronic filing- Most states have agreements with the IRS for joint electronic filing of tax returns. Federal and state returns are transmitted by an electronic return originator (ERO) to an IRS campus. The IRS separates the returns and sends the state return to the state for processing.

  2. State Income Tax Levy Program (SITLP) and Treasury Offset Program-Under the SITLP- The IRS levies on state tax refunds when the taxpayer owes federal tax. Under the Treasury Offset Program, a state certifies tax debts through Financial Management Service (FMS), and federal tax refunds are levied upon and the proceeds are sent to the state.

  3. Joint Audits - The IRS and state tax agencies can jointly audit taxpayers. This is commonly done as part of a compliance initiative (e.g. abusive trust audits), or when there is an approved Return Preparer Project. IRS and state agents can work side-by-side on an audit, or they can independently audit returns and share results. The GL should prepare a Memorandum of Understanding for joint audit projects. The Questionable Employment Tax Project (QEPT) MOU allows the IRS and the State Workforce Agencies (SWAs) to share audit results and conduct side by side employment audits.

11.4.1.6  (03-01-2007)
Strategic Relationship Management Overview

  1. Communications, Liaison and Disclosure (CLD) organizations establish and maintain relationships with internal and external organizations and agencies that can positively affect the compliance behavior of taxpayers. The overall approach to managing these relationships is "Strategic Relationship Management" (SRM). SRM’s purpose in the CLD organization is to manage relationships with our respective stakeholders.

  2. CLD organizations establish relationships with their respective stakeholders to support the IRS Strategic Plan and the Small Business & Self-Employed (SB/SE) Operating Division’s strategic plan. Specifically, these relationships help to deliver annual CLD Program Letter objectives.

  3. Governmental Liaison (GL) has external and internal stakeholders. GL is the relationship manager for Federal, state, and local governments and in conjunction with TAS, Congressional members and staff. GL works with all CLD functions as needed. GL fosters and maintains relationships with operating and functional divisions (OD/FDs) to accomplish its mission of supporting them in reaching IRS compliance and service goals.

  4. Stakeholder Liaison has responsibility for SB/SE’s " Strategic Relationship Management" for practitioner and business stakeholders, and maintains the SL SRM website with information on projects and outreach activities affecting practitioner and small business stakeholders. See Exhibit 11.4.1-4. for a chart outlining the relationship between SL and GL and their stakeholders.

  5. IRS has established Stakeholder Relationship Management Local Councils (SRMLCs) to deliver SRM in the field. The purpose of the Councils is to work issues involving more than two IRS functions and external stakeholders. Each GL may have the opportunity to participate in an SRMLC composed of members from OD/FDs. These cross-functional councils provide an opportunity to pool the efforts of the members and their respective stakeholders.

    1. Council meetings are a communication forum for marketing GL and CLD programs/roles and to improve the GL’s awareness of other functional activities, priorities, and projects. Meetings provide an opportunity to solicit and provide input for projects.

    2. Council meetings are an opportunity to encourage OD/FDs to partner with the state or other agencies and vice versa. GL support for OD/FDs projects promotes relationship building. Leveraging resources is a major benefit of mutual support.

11.4.1.6.1  (03-01-2007)
Federal, State and Local Government Relationship Management

  1. The Governmental Liaison and the Disclosure Manager, along with Federal, State and Local Government (fslg) agency staff, facilitate periodic meetings between executives and managers from the IRS and the fslg agencies. Topics may include the status of ongoing initiatives, new initiatives, the safeguard program, training, etc.

  2. The GL also facilitates ad hoc meetings between IRS and fslg staff on particular issues (e.g. abusive tax schemes, tax gap) or for certain functions (e.g. Criminal Investigation staffs).

  3. GLs have a basic understanding of their fslg’s tax structure and can provide information about state taxes to the Operating and Functional Divisions (ODs and FDs). The GL shares information about new IRS policies and procedures with fslg agency staff.

  4. For inquiries concerning the government entities own filing requirements (not inter-governmental administrative issues), offices may contact the IRS office of Federal, State and Local Governments (fslg).

11.4.1.6.2  (03-01-2007)
Stakeholder Relationship Management Local Council

  1. The GL’s role in the Stakeholder Relationship Management Local Council (SRMLC) is to:

    1. Share Governmental Liaison and congressional information that may impact ODs/FDs.

    2. Learn about OD/FD projects and initiatives that may affect GL stakeholders.

    3. Identify opportunities for joint initiatives or partnering, and suggest projects that council members can undertake. GLs should offer and provide support to the SRMLC projects, including obtaining the support of stakeholders. GLs should request support from the SRMLC members for GL projects.

    4. Market the GL program on an ongoing basis to other Council members.

    5. Enhance relationships critical to the success of GL objectives.

  2. GLs should identify projects, initiatives, or concerns discussed in the SRMLC in which GL stakeholders might have an interest or be able to provide support. GLs should invite their stakeholders’ participation, when possible, to improve the implementation of any SRMLC or OD/FD project or initiative.

  3. GLs should use information gained from the Council in outreach activities to federal, state, local, and congressional stakeholders.

  4. Examples of SRMLC activities involving GL and cross-functional actions:

    1. IRS Levy of Social Security Checks - With the Taxpayer Advocate Service to prepare for hardship applications. With the Taxpayer Assistance Center staff to prepare for face-to-face inquiries. With Media Relations to prepare local news releases. And GL provided a "heads up" on the issue for congressional offices.

    2. Federal Executive Association (FEA) Civil Service Recognition - Stakeholder Liaison; Stakeholder Partnerships, Education & Communication; Equal Employment Opportunity; Taxpayer Assistance Center; and Taxpayer Advocate staffs provided booths to promote IRS programs. GL served on the FEA publicity committee, coordinated with other federal agencies, and invited state employees to attend. GL took responsibility for coordinating IRS’s participation, planning with OD/FDs’ SRM meetings.

    3. Congressional Seminar - GL invited interested OD/FDs to speak. SRMLC meetings provided an opportunity to identify congressional issues/ concerns and to focus on key messages to be presented. After the seminars, council members discussed possible future outreach opportunities in partnership with a congressional office to present a small business fair.

    4. Small Business Fair - A congressional office expressed interest in partnering with the IRS to hold a small business fair. GL used the SRMLC to solicit participation from Stakeholder Liaison, Taxpayer Advocate Service, Media Relations, and to offer the assistance of state and local federal agencies.

11.4.1.7  (03-01-2007)
Disclosure of Tax Information to State Tax and other Agencies

  1. The IRS is authorized by IRC § 6103(d) to disclose tax information to state tax officials and state and local law enforcement officials for tax administration purposes, upon written request. Complete guidelines for making disclosures of federal tax information to states for tax administration purposes are located in IRM 11.3.32 at http://publish.no.irs.gov/IRM/P11/PDF/30455F05.PDF

  2. "State" is defined in IRC §6103(b)(5) as: Any of the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, any Regional Income Tax Agency (RITA) consisting of a qualified group of municipalities that each impose a tax on income or wages and have a collective population in excess of 250,000, and any Municipality with a population in excess of 250,000 (as determined by the most recent decennial United States census data available), which imposes a tax on income or wages and with which the Commissioner of Internal Revenue has entered into an agreement regarding disclosure.

  3. In each of the fifty states, there are two tax agencies with which the IRS may exchange tax information. One tax agency in each state administers such taxes as individual income tax, corporate franchise tax, sales tax, excise tax, and property tax. A second tax agency in each of the fifty states administers the unemployment tax.

  4. Each state tax agency and the IRS may enter into an " Agreement on Coordination of Tax Administration" , commonly referred to as a basic agreement. See also IRM 11.3.32.5 on Basic Agreements and for standard language for basic agreements see IRM Exhibit 11.3.32–1; both located at http://publish.no.irs.gov/IRM/P11/PDF/30455F05.PDF . Basic agreements are signed by the Commissioner of Internal Revenue and the head of the state tax agency. The provisions of the basic agreement encompass required procedures and safeguards for exchanging tax information.

  5. In addition to the basic agreement, the IRS and state tax agencies enter into implementing agreements, which serve as the written request for tax information that is routinely exchanged, such as audit reports. The implementing agreement is signed by the head of the state tax agency and the GLD Area Manager, and may be signed by other Area Managers or Campus Managers who have responsibility for providing tax information under the agreement. The Disclosure Manager maintains and updates the implementing agreements, and the Governmental Liaison should provide assistance. See also IRM’s 11.3.32.6 on Implementing Agreements and 11.3.32-3 Exhibit on Standard Language for Implementing Agreements both located at http://publish.no.irs.gov/IRM/P11/PDF/30455F05.PDF .

  6. Implementing agreements may be amended when there are changes to responsible parties, new exchanges, procedures, tolerance changes etc. When an agreement has several amendments or there are other significant changes (e.g., new organizational structure) a new implementing agreement should be requested. For additional information, see IRM 11.3.32.6, http://publish.no.irs.gov/IRM/P11/PDF/30455F05.PDF .

    Note:

    For those instances where there are electronic exchanges of Federal Tax Information (FTI), based on the guidance of Title III of PL 107-47 (also known as) Federal Information Security Management Act (FISMA), such interconnections require both an MOU/A and an Interconnection Security Agreement (ISA) per the guidance of National Institute of Standards and Technology (NIST) Special Publication 800-47.

11.4.1.8  (03-01-2007)
Processing Requests for Tax Information

  1. Tax information may be requested on a case by case basis using Form 8796, "Request for Return/Information " , the Form 8796 is used by state tax agencies to request federal tax information and by the IRS to request state tax information. Form 8796 must be signed by someone at the requesting agency who is authorized to request and receive tax information for the agency. See IRM 11.3.32.10, http://publish.no.irs.gov/IRM/P11/PDF/30455F05.PDF .

  2. State tax agencies can participate in the Transcript Delivery System (TDS) which will allow approved state employees to order certain IRS transcript products directly on-line. An MOU signed by both the IRS and the state agency would need to be formalized prior to the agency participating in this system. All regular rules regarding IRC §6103(d) disclosures apply.

  3. Specific requests for tax information related to a joint initiative may be included in a Memorandum of Understanding/Agreement (MOU/MOA) between the IRS and a state tax agency. An MOU/MOA may also be used to formalize procedures for a joint initiative, whether or not tax information is disclosed. The GL is responsible for development of MOUs/MOAs with state tax agencies.

  4. Disclosures of federal tax information to a state tax agency must be accounted for on Form 5466-B. Complete instructions are found in IRM 11.3.37, Record Keeping and Accounting for Disclosure http://publish.no.irs.gov/IRM/P11/PDF/30461F05.PDF

  5. Specific requests for tax information should be referred to the Disclosure Manager.

    Note:

    For those instances where there are electronic exchanges of Federal Tax Information (FTI), based on the guidance of Title III of PL 107-47 (also known as) Federal Information Security Management Act (FISMA), such interconnections require both an MOU/A and an Interconnection Security Agreement (ISA) per the guidance of National Institute of Standards and Technology (NIST) Special Publication 800-47.

11.4.1.9  (03-01-2007)
State Agency Reviews

  1. Mission Assurance (Safeguards Office) has program responsibility for conducting need and use reviews of a state tax agency. The Governmental Liaison (GL) should assist in the reviews, with an emphasis on the data exchange program.

  2. A need and use review of each state tax agency is conducted annually. The purpose of the need and use review is to ensure that the state tax agency is complying with Policy Statement P-1-35, which restricts the release of IRS tax information to include only items that fit the state's justified need and will use to accomplish good tax administration in adherence with the formal exchange agreement.

    Note:

    Policy Statement P-1-35 is being renumbered as P-11-4.

  3. The Disclosure Enforcement Specialists will schedule all reviews, and will give the GL notice of a planned review 60 days in advance. Upon notification by the Disclosure Enforcement Specialist, the GL may be asked to provide the following information:

    1. Data Exchange Enrollment Form and Data element Selection Form for the covered period.

    2. Data exchange specification books for any extracts that are chosen for review.

    3. Any notification of changes or corrections to the selected specification books received from Headquarters.

    4. All Memoranda of Understanding that include exchanges of tax information that were in effect during the covered period.

    5. Implementing Agreement and addendum.

  4. The Disclosure Enforcement Specialist will contact the GL 30 days prior to the scheduled review to plan the agenda. The GL may develop questions for the review.

  5. The GL will offer to assist the Disclosure Enforcement Specialist with the review in the areas of Data Exchange Program and Memorandums of Understanding.

  6. The GL’s role in the pre-planning phase of the review may include:

    1. Identify at least one Data Exchange extract to review.

    2. Identify at least on Memorandum of Understanding that includes an exchange of tax information to review.

  7. During the on-site review, the GL may:

    1. Ask review questions about the Data Exchange Program and Memoranda of Understanding (MOUs).

    2. Serve as resource person to clarify issues related to the Data Exchange Program and MOUs.

    3. Review Data Exchange specifications book(s) with state agency staff and highlight any changes.

    4. Identify other potential uses for data extracts.

    5. Help identify changes in personnel at state agency for authorized list.

    6. Assess additional state needs.

  8. After the on-site review, the GL may:

    1. Prepare or review parts of the written report.

    2. Review final report.

    3. Work with the state agency to make improvements in their use of tax information.

  9. The GL may be able to use information obtained during a review to start a new project, suggest needed training, propose enhancements to the Data Exchange Program, or recommend that the state make changes in future Enrollment Agreements or Data Element Selection Forms.

11.4.1.10  (03-01-2007)
Coordination of Projects and Joint Initiatives

  1. The Governmental Liaison’s (GL’s) job is to find opportunities to partner with other government entities to improve tax administration and reduce the burden of compliance for taxpayers. Many opportunities are found through joint initiatives with state tax agencies. Opportunities also exist to partner with federal and local agencies or Congressional offices.

  2. The GL acts as a facilitator supporting initiatives owned by the Operating and Functional Divisions (ODs/FDs). The GL provides oversight, support and assistance to the divisions with their initiatives.

  3. GLs are responsible for managing the Data Exchange and Congressional Affairs Programs for their state(s). ODs/FDs should be encouraged to participate in such initiatives where appropriate.

    Example:

    An OD representative might be invited to give a presentation at a meeting for Congressional staff. Responsibility for CAP program initiatives is shared with the Local Taxpayer Advocate with program guidance from Legislative Affairs.

  4. GLs may identify and facilitate joint initiatives involving IRS ODs/FDs and other partners. However, the day-to-day management of such initiatives are the responsibility of the OD or FD.

11.4.1.11  (03-01-2007)
Partnership Activit