IRS information sharing programs save government resources through partnerships between IRS and federal, state and municipal governmental agencies. The goal of these programs is to enhance voluntary compliance with tax laws.
This includes facilitating the exchange of taxpayer data, leveraging resources, providing assistance to taxpayers to improve compliance and communications, and identifying and reporting information on emerging tax administration issues.
Internal Revenue Code (IRC) Section 6103 authorizes the IRS to share tax information by entering into agreements with governmental agencies for tax administration purposes. Comparable laws allow agencies to share their information with the IRS.
The three components of the IRS information sharing program are:
To ensure the privacy of all taxpayer data, the Disclosure program provides oversight and education to all employees and external partners ensuring the protection of taxpayer confidentiality rights.