- 11.3.33 Other Disclosures to State and Local Governments
- 188.8.131.52 Purpose
- 184.108.40.206 Furnishing Return Information to Federal, State, and Local Child Support Enforcement Agencies
- 220.127.116.11.1 Contractual Agreements
- 18.104.22.168.2 Return Information Extracted from the IRMF
- 22.214.171.124.3 Return Information Extracted from the IMF
- 126.96.36.199.4 Processing Responsibilities
- 188.8.131.52.5 Billing Procedures
- 184.108.40.206.6 Safeguard Requirements
- 220.127.116.11 Furnishing Collection Records to Child Support Enforcement Agencies
- 18.104.22.168.1 Processing Responsibilities
- 22.214.171.124 Disclosure of Information About Exempt Organizations to Appropriate State Officials.
- 126.96.36.199.1 Definitions
- 188.8.131.52.2 Screening the Administrative File
- 184.108.40.206.3 Use of Information in Civil Judicial or Civil Administrative Proceeding
- 220.127.116.11.4 Training
- 18.104.22.168.5 Confidentiality and Recordkeeping
- 22.214.171.124.6 Exempt Organization Master File Data
- 126.96.36.199 IRMF Data to Welfare Agencies
- 188.8.131.52 Disclosure of IRC 5181 Information
- 184.108.40.206 Refund Offsets
- 220.127.116.11 Disclosure of Returns Filed Under IRC 6050(I)
Part 11. Communications and Liaison
Chapter 3. Disclosure of Official Information
Section 33. Other Disclosures to State and Local Governments
October 24, 2013
(1) This transmits revised text for IRM 11.3.33, Other Disclosures to State and Local Governments.
(1) Editorial and organizational changes have been made throughout to update IRM/statute/organizational references and to make the text easier to follow.
(2) References to IRM 18.104.22.168.2 have been changed to 22.214.171.124.
(3) IRM 126.96.36.199.2 is changed to remove the reference to examples.
The Governmental Liaison and Disclosure intranet home page can be found at:
Gregory T. Ricketts
Acting Director, Governmental Liaison and Disclosure
This section provides guidelines for:
Furnishing return information to state and local child support enforcement agencies;
Disclosing exempt organization information to state officials; and
Disclosing unearned income information from the IRMF file to federal, state, and local welfare agencies.
IRC § 6103(l)(6) authorizes the IRS to disclose to federal, state or local child support enforcement agencies, upon written request, certain items of information from any return of an individual with respect to whom child support obligations are sought to be established or enforced or from any return of an individual with respect to whom support obligations are owing.
IRC § 6103(l)(8) allows the Social Security Administration to disclose certain tax return information (primarily wage and self employment data) to federal, state, or local child support enforcement agencies under essentially the same conditions of IRC § 6103(l)(6).
The IRS may disclose return information to those agencies only for the purpose of their administration of Part D of Title IV of the Social Security Act and only to the extent necessary for their use in establishing and collecting child support obligations from, and locating individuals owing such obligations.
The receiving agency on its own volition may not use the tax information for other relief programs it administers even if the same/similar information for those programs is available from IRS.
The prohibition on judicial use is explained in the 1976 Tax Reform Act Joint Committee Report. Independently corroborated information may be used by the agency consistent with its own disclosure laws. The tax information received from IRS, however, retains its original character and must be protected and only re-disclosed as described in IRC § 6103. Address information reentered into agency files from postal tracers is considered to be independently corroborated information. The one exception to use in litigation is disclosure to state prosecutors (and subsequent trial) under Public Law 96-611, the Parental Kidnapping Act. This law defines parental kidnapping cases as child support cases. It specifically states that addresses obtained from the Parent Locator Service (PLS) may be made available to a state to determine the whereabouts of any absent parent or child for the purpose of:
Enforcing any state or federal law with respect to the unlawful taking or restraint of a child; or
Making or enforcing a child custody determination.
See IRM 188.8.131.52.(6)
With the passing of Public Law 104-193, IRC § 6103(l)(6)(B) permits agents (contractors) of child support enforcement agencies to receive certain return information. Disclosures are limited to:
The address and social security number(s) of the individual with respect to whom child support obligations are sought to be established or enforced; and
The amount of the offset against a federal income tax refund for collection of past due child support obligations.
Return information that may be disclosed to child support enforcement agencies is extracted from the IMF and IRMF.
Taxpayer address and SSN verification information from the IMF will be made available to state and local child support enforcement agencies by the Parent Locator Service (PLS), HHS/OCSE. See (11) below.
In accordance with IRC § 6103(l)(6)(A)(ii), the IRS may disclose to federal, state, or local child support enforcement agencies with respect to those individuals described in (1) above, available return information reflected on any return filed by or with respect to any such individual that relates to:
The amount of such individual's gross income; and
The name and addresses of the payers of such income.
The disclosures listed above can only be made if such information is not reasonably available from any other source. Currently, the law does not allow disclosure of the payer's employer identification number.
Only those child support enforcement agencies determined by Headquarters as eligible to receive this information may request the return information.
Return information obtained by child support enforcement agencies pursuant to the provisions of IRC § 6103(l)(6) may be disclosed to other agency personnel on a need-to-know basis while performing actions described under IRC § 6103(l)(6).
The child support enforcement agencies may use tax return information, such as employer payroll records, to obtain leads to assist in their payment enforcement. These records, once obtained, could be disclosed to third parties or used in litigation. The original records obtained from IRS do not lose their confidential status even if independently corroborated.
Taxpayer address information from the IMF will be disclosed only to the Parent Locator Service, Office of Child Support Enforcement, Department of Health and Human Services. These disclosures will be made by Martinsburg Computing Center in accordance with Taxpayer Address Request (TAR) procedures.
The PLS may provide this information to state and local child support enforcement agencies as authorized by Part D of Title IV of the Social Security Act.
HHS/OCSE will be the official agency to enter into contractual agreements with IRS.
HHS/OCSE will be responsible for releasing tax return information from IRS files to the state child support enforcement agencies subject to the provisions of IRC § 6103. The information is also subject to the disclosure restrictions of the Privacy Act, 5 USC § 552a.
The appropriate field Disclosure Manager will act as the receiving point for any inquiries from the agency.
HHS/OCSE requests for return information relating to:
The amount of the individual's sources and types of income;
The names and addresses of the payers of such income; and
Payee address information.
These requests will be submitted to Martinsburg Computing Center (MCC), as part of the HHS/OCSE extract.
Coordination of IRMF extracts is handled by the Director, Office of Governmental Liaison and Disclosure.
IRC § 6103(l)(6)(A)(i) permits the disclosure of certain tax information reflected on a return filed by or with respect to a person against whom child support obligations are sought to be established or enforced.
Tax information of a new spouse reflected on a return filed jointly with a person described above may be disclosed to a federal, state, or local child support enforcement agency. However, the new spouse's identity information (name and social security number) may not be disclosed.
HHS/OCSE has full responsibility for overseeing processing requirements for the state/local child support enforcement agencies.
Headquarters has responsibility for coordinating with HHS/OCSE to insure that all necessary processing requirements are met.
The disclosures generated from the IMF/IRMF will be accounted for automatically or will be done using the narrative accounting procedures in IRM 11.3.37, Recordkeeping and Accounting for Disclosures.
The Chief Financial Officer, Headquarters, will bill the HHS/OCSE agency for information obtained under this procedure.
The accounting function of Headquarters will handle the billing with HHS/OCSE for information obtained under this procedure.
The Office of Governmental Liaison and Disclosure will coordinate billing.
The Office of Safeguards has the responsibility to ensure that all safeguard requirements are met in accordance with IRC § 6103(p)(4) when federal, state, and local child support enforcement agencies obtain return information under IRC § 6103(l)(6).
Detailed safeguarding instructions are in Publication 1075, Tax Information Security Guidelines for Federal, State, and Local Agencies and Entities.
IRC § 6305 authorizes the IRS to collect delinquent child support obligations (CSOs) for state child support enforcement agencies.
As part of this activity, the IRS, under IRM 184.108.40.206.1, may disclose information regarding CSOs (but not tax information) from the SBSE Division's Collection function files to these agencies.
Revenue Officers prepare a status report for the child support enforcement agencies on all CSO TDAs held over ninety days. A follow-up report will continue every ninety days until the case is closed or transferred to the appropriate field office for monitoring as an NMF installment agreement. This report is forwarded to the state agency by the Disclosure Manager. See IRM 5.1.12,Cases Requiring Special Handling, for Collection related procedures on CSO cases. Reports will contain only information that is relevant to the collection of delinquent child support obligations and the enforcement of laws governing these obligations. The information might include items such as a new address for the delinquent parent, employment data, or other information gathered during the course of the collection investigation. Note that the information in the report will generally not include any return information.
The information relative to these TDAs is not return information and therefore not subject to the provisions of 26 USC § 6103. However, the information is subject to the disclosure restrictions of the Privacy Act, 5 USC § 552a.
The Revenue Officer is to prepare Form 5482, Record of Disclosure (Privacy Act 1974), pursuant to the Privacy Act and maintain the form as described in IRM 11.3.19.
The appropriate field Disclosure Manager will act as a receiving point for any inquiries from the agency.
General Statement of Law.
Publication to appropriate state officers
Under IRC § 6104(c), the Service is allowed to notify appropriate state officers when it has made certain proposed or final determinations regarding organizations described in IRC § 501(c) that are exempt from taxation or have applied for recognition of tax-exempt states under IRC § 501(a). If an appropriate state officer makes a request for the administrative material related to the final determination, the Service will provide the material, subject to the requirements of the Code and regulations. Certain request may be denied if the Secretary determines it would impair tax administration. Disclosures under IRC § 6104 (c) will be made pursuant to a memorandum of understanding executed with state charity (including tax) officials that is similar in format to the Basic Agreements entered into under IRC § 6103 (d).
General Responsibilities of Governmental Liaison and Disclosure (GLD) and Exempt Organizations (EO)
EO will conduct the IRC § 6104(c) Notification Program, including maintaining a current notification list, processing routine IRC § 6104(c) notifications, advising state officials of their right to access additional information, and maintaining records. See IRM 7.28.2, Disclosure of Information About Exempt Organizations to Appropriate State Officials, as described in IRC § 6104(c), for details including request processing procedures.
GLD's Office of Disclosure has the primary responsibility for providing training, advice, and assistance relating to the disclosure of tax returns and return information.
EO should consult with the Disclosure Technical Advisor for TEGE and/or other employees, as GLD may direct, for disclosure problems that are not clear under IRC § 6104 or the regulations.
GLD will provide technical assistance for the screening of the administrative files and determinations regarding requests for those files; GLD officers will provide technical assistance to EO, as necessary, including:
GLD will assist EO in training EO employees regarding IRC § 6104(c) disclosure requirements, restrictions, and related disclosure matters;
GLD also has liaison responsibilities with outside agencies and organizations. Because of this, EO should contact GLD staff or embedded Liaison staff to coordinate program requirements or events that require additional liaison assistance.
For purposes of IRC § 6104(c), a final determination is when the IRS determines:
An organization is one that is refused recognition as an organization described in IRC § 501(c)(3)
An organization has been operated in such a manner that it will not meet or no longer meets the requirements of its exemption under IRC § 501(c)(3)or an organization has a deficiency of tax under IRC § 507, or
An organization has a deficiency of tax under Chapters 41 or 42 of the IRC.
For purposes of IRC § 6104(c), a determination is regarded as final when all administrative review with regard to the determination has been completed.
The IRS will not regard a final refusal to recognize a final determination until an organization has exhausted all of its administrative appeal or the period for exercising such rights has expired and all administrative review with respect to the determination has been completed. For a definition of determinations see Treasury Regulation § 301.6104(c)-1(c).
For purposes of IRC § 6104(c), a final determination of a deficiency of tax occurs when the IRS accepts a waiver of restrictions on assessment and collection of a deficiency in tax. When a case is unagreed, a determination is final when the 90 day letter to the taxpayer is issued. When a case is agreed, a determination is final when the examination report to the taxpayer is issued.
APPROPRIATE STATE OFFICER:
An appropriate state official for purposes of automatic notification is the state Attorney General, state tax officer, or any state official charged with overseeing organizations described in IRC § 501(c)(3) and the head of an agency designated by the state Attorney General as having primary responsibility for overseeing the solicitation of funds for charitable purposes. To the extent that particular exempt organization information is described in IRC § 6101(c) , it must be disclosed to state tax officials under the special rules and procedures of IRC § 6104(c), and not the more general procedures of IRC § 6103(d). In order to obtain IRC § 6104(c) information, a separate memorandum of understanding must be executed by state tax officials.
The Service's notification, as described in Treasury Regulation § 301.6104(c)-1, to the state Attorney General and the principal tax officer of each state occurs when it has made certain final determinations regarding organizations that are exempt from taxation described in IRC § 501(c)(3) or to those who have applied for recognition of tax-exempt status under IRC § 501(a) . Treasury Regulation § 301.604(c)-1(a)(2) gives other state officers an opportunity to request that they also be automatically notified. Other state officers may only make these requests after they have established they are appropriate state officers. (See IRM 220.127.116.11)
Treasury Regulation § 301.6104(c)-1(a)(2) also gives other state officers an opportunity to request that they be notified (with respect to a particular organization or type of organization) of certain final determinations regarding organizations described in IRC § 501(c)(3) that are exempt from taxation or have applied for recognition of tax-exempt status under IRC § 501(a). These state officers may only make these requests after they have established they are appropriate state officers. (See IRM 18.104.22.168 for the application process).
DISCLOSURE OTHER THAN BY REQUEST:
IRC § 6104(c)(2)(D) authorizes inspection or disclosure of returns and return information of an organization tax-exempt under IRC § 501(a) to an appropriate state officer of any state if the Secretary determines that such returns or return information may constitute evidence of noncompliance under the laws within the jurisdiction of the appropriate state officer.
CHANGE OF NOTIFICATION STATUS:
See IRM 22.214.171.124 for the procedures to have a state officer change notification status.
To the extent authorized by IRC § 6104(c), the designated TEGE employee should disclose as much information that is relevant to the Service's final determination and relevant to the state law determination as possible. However, the designated person may not disclose certain categories of information that are described in Treasury Regulation § 301.6104(c)-1(b)(3)(ii). If EO employees, generally the EO "designated person," has questions or requests assistance from GLD, the Disclosure Technical Advisor or Disclosure Manager should provide assistance. It is important that the file is properly purged of non-disclosable information in accordance with Treasury Regulation § 301.6104(c)-1(b)(3)(ii), other applicable Federal laws, tax convention provisions, or that the Commissioner or his/her delegate has determined should not be disclosed (material the disclosure of which would prejudice the proper administration of the internal revenue laws). Also, if reviewing or assisting, Disclosure Managers should ensure that the "Response to Request for Related Administrative Material Letter" includes statements that:
The information is federal tax information being made available only for the purpose specified in the request;
It should be protected from disclosure to or access by unauthorized individuals;
Unauthorized disclosures are subject to criminal and civil penalties under IRC sections 7213 (a), 7213 (A), and 7431;
Are subject to penalties under Title 18 section 1001 relating to misuse of information;
They must obtain permission from the Service to use any of the disclosed information before it is used in a State judicial or administrative proceeding.
An appropriate state officer may disclose information obtained under IRC § 6104(c) in a judicial or administrative regulatory proceeding regarding the organization to the extent necessary to carry out their statutory responsibilities under state law relating to organizations type described in IRC § 501(c)(3).
GLD Disclosure Managers and the Disclosure Technical Advisor to TEGE, should offer their assistance to EO's designated persons and to appropriate state officials to ensure information is legally disclosed and is adequately protected. EO designated persons may find GLD assistance especially helpful when they review the material and information that will be used by the state officials in an administrative or judicial proceeding.
Disclosures obtained under IRC § 6104(c) used in civil judicial or civil administrative tax proceedings are subject to rules similar to tax administration procedures under IRC § 6103(h)(4) .
Disclosures under this section shall not be made to the extent that the Secretary determines the disclosure will seriously impair federal tax administration.
The Office of Disclosure will provide disclosure training to EO designated persons in Cincinnati in Examination Planning and Programs. This training will reduce the risk of inadvertent disclosures during the notification process and will consist of:
General disclosure training; and
Specific disclosure training as it relates to IRC § 6104(c), including specific guidance on screening administrative file material.
EO will provide general instructions and training for IRC § 6104(c) notifications and the procedures related to the notifications.
Returns and return information disclosed under IRC § 6103(c) are considered confidential in terms of IRC § 6103(a) and can not be re-disclosed unless authorized by this title.
Accounting and recordkeeping pursuant to IRC § 6103(p)(3) apply to IRC § 6104(c) disclosures.
Safeguarding pursuant to IRC § 6103(p)(4) applies to IRC § 6104(c) disclosures.
Information concerning IRC § 501(c)(3) organizations disclosed to state officers under IRC § 6104(c), that is otherwise unavailable to the general public, should be protected against unauthorized disclosure. Unauthorized disclosures are subject to civil and criminal penalties pursuant to IRC §§ 7213(a), 7213(A), and 7431.
The Pension Protection Act of 2006, Public Law 109-280, effective August 17, 2006 requires appropriate state officers to account for and safeguard disclosures received under this title. In addition, civil and criminal penalties apply for unauthorized disclosures.
Penalty provisions under Title 18 § 1001 apply to misuse of information received under this title.
IRC § 6103(l)(7)(B) requires the disclosure of unearned income information to federal, state, and local agencies administering certain benefit programs. Receiving agencies may not re-disclose this information to contractors. The information may only be used to determine eligibility or to correct amount of benefits. This does not include preparation of management reports (even if statistically blurred).
Disclosure of this information is made by the Martinsburg Computing Center from the Information Returns Master File (IRMF).
Agencies wishing to participate must apply in writing to:
Internal Revenue Service
Director, Office of Privacy, Governmental Liaison and Disclosure
1111 Constitution Ave., NW, IR-7503
Washington, DC 20224
Publication 3373 explains the procedures for making these disclosures.
Independently corroborated information may be used by the agency consistent with its own confidentiality laws.
These disclosures are subject to the safeguarding requirements of IRC § 6103(p)(4) and the Computer Matching Act. See IRM 11.3.38, Role and Responsibilities of Disclosure Managers.
IRC § 6103(l)(9) allows for the disclosure of the:
Production premises location(s) of alcohol for fuel producers as defined under IRC § 5181
Disclosures may be made to any state agency, body, or commission or its legal representative, charged with the responsibility for the administration of state alcohol laws. The information may only be used for the administration of such laws.
The Alcohol and Tobacco Tax and Trade Bureau is responsible for making these disclosures.
Requests for this information should be signed by the head of the state agency and sent to:
Alcohol and Tobacco Tax and Trade Bureau
Washington, D.C. 20220
IRC § 6402(c) allows the Secretary of Treasury to offset tax refunds against delinquent child support.
The actual offset is made by the Bureau of the Fiscal Service, that handles the payment aspect of refunds/payments. The offsets are coordinated for the States through OCSE.
The disclosures of tax information to OCSE necessary for the offsets is governed by the provisions of IRC § 6103(l)(10). This provision sets out the specific tax information that can be disclosed as well as the restrictions on use.
The Office of Safeguards has responsibility to conduct the safeguard reviews of IRC § 6103(l)(10) recipients.
Under IRC § 6103(I)(15) , information from returns filed under IRC § 6050I may be disclosed, upon written request, to officers and employees of any federal agency, or any agency of a state, local or foreign government on the same basis and subject to the same conditions as apply to the disclosure of reports filed under 31 USC § 5313 (except that no disclosure shall be made for the administration of any tax law). The Financial Crimes Enforcement Network (FinCEN) administers Title 31 Currency Transaction Report disclosures. On June 25, 2004, FinCEN issued its "Re-Dissemination Guidelines for Bank Secrecy Act Information."
Criminal Investigations is responsible for responding to these requests. The safeguarding provisions of IRC § 6103(p)(4) apply to these disclosures.
See IRM 11.3.29, Disclosure to Federal Agencies for Administration of Noncriminal Laws, and IRM 11.3.36,Safeguard Review Program, for more information.
With passage of the Patriot Act, IRC § 6050(I) returns, Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, are filed pursuant to both Titles 26 and 31 effective January 1, 2002. See IRM 126.96.36.199.6, Title 31 Reports - CTRs, CMIRs, FBARs, and SARs, for a discussion of this change. Most law enforcement agencies should be able to secure post-Patriot Act Forms 8300, directly through FinCEN.