Exchanges of tax-related information between international jurisdictions generally occur under the provisions of international exchange agreements. Such agreements include:

Each international exchange agreement contains uniquely worded provisions, and may be amended by protocols. Therefore, the specific and most current applicable agreement should be consulted in each case. Nevertheless, EOI provisions in such agreements generally include the following components:

Strict U.S. disclosure laws about returns, return information, and other sensitive tax data govern the exchange of such information with foreign tax officials under international exchange agreements. Procedural and legal authority for the exchange of information with foreign jurisdictions under international exchange agreements is founded primarily on:

Improper disclosure of returns and return information as defined under IRC 6103(b) may result in civil or criminal penalties under IRC 7431 and IRC 7213. The improper disclosures also violate IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) policy as detailed in IRM 10.5.5, IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program Policy, Guidance, and Requirements. Moreover, the improper disclosure of returns, return information, and other sensitive data by the IRS may result in the impairment of tax administration and/or damage to intergovernmental relations. There are several situations where the IRS must make determinations about such potential "impairment" of tax administration in connection with EOI. For more information, see IRC 6103(e)(7), IRC 6105(b)(4), and IRM 11.3.25, Disclosure to Foreign Countries Pursuant to Tax Treaties. The authority to make most impairment determinations is governed by Delegation Order 4-12 (Rev. 4).

Most EOI programs described in IRM 4.60.1 are administered by the EOI Program. The AEOI Program administers the Automatic Exchange of Information program (for more information, see IRM 4.60.1.11, Automatic Exchange of Information (AEOI) Program). JITSIC administers specific requests for information where such requests:

JITSIC, along with the EOI Program, also administers spontaneous exchanges of information.

The Withholding Exchange and International Individual Compliance (WEIIC) and Treaty and Transfer Pricing Operations (TTPO) directors prepare periodic briefing reports for the Commissioner, LB&I focusing on:

Consistent with IRC 6103, IRC 6105, and Delegation Order 4-12 (Rev. 4), no IRS employee may contact, provide any information to, or request or receive any information from a foreign tax official under an international exchange agreement unless authorized in Delegation Order 4-12 (Rev. 4). This restriction applies to any information provided, requested, or received under an international exchange agreement, including, but not limited to:

JITSIC administers United States-initiated specific requests for information where such requests:

All other United States-initiated specific requests are administered by the EOI Program. IRS personnel contemplating any specific request for information may email the EOI Program ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for guidance.

All requests initiated by IRS personnel must be in writing. Each request must provide sufficient background information about the examination, investigation, or other tax administrative procedure to ensure the foreign partner may understand both the relevance of the request to the examination, investigation, or procedure and the nature of the information being requested. Moreover, each request must pertain to a single foreign jurisdiction with which the U.S. has an international exchange agreement covering exchange of information for purposes of the tax(es) and matters subject to examination, investigation, or other tax administrative procedure. Each request should include the following information:

Generally, first-level management of the requesting IRS office approves each request, unless another approver is designated by the requesting operating division. The approved request is then forwarded to the EOI Program via email ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

JITSIC administers foreign-initiated specific requests for information where such requests:

All other foreign-initiated specific requests are administered by the EOI Program.

EOI analysts assigned to foreign-initiated requests for information review each request as well as the applicable international exchange agreement to ensure the following elements are included:

The grand jury derives its power from the Fifth Amendment to the United States Constitution. Federal prosecutors must present evidence before a grand jury, which then determines whether there is probable cause to return a criminal indictment and charge an accused with a federal crime. The proceedings of a federal grand jury are governed by Rule 6 of the United States Federal Rules of Criminal Procedure, under which the disclosure of grand jury material or information is generally prohibited. All persons who have access to grand jury information are subject to these grand jury secrecy rules. For more information, see IRM 9.5.2.4, Grand Jury Secrecy. For more information about grand juries and Rule 6(e) of the Federal Rules of Criminal Procedure, see IRM 9.5.2, Grand Jury Investigations, and IRM 11.3.27, Disclosure of Returns and Return Information to Grand Juries.

United States-initiated spontaneous exchanges generally begin when an IRS employee discovers information suggesting non-compliance with the tax laws of a foreign partner during the course of an examination, investigation, or other administrative procedure. Examples of situations where a spontaneous exchange of information should be considered include, but are not limited to:

The information, which should be sent by the initiating IRS office to the EOI Program via email ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, should include the following:

Additional relevant information may include the following:

Within 30 calendar days after receipt of the above information, the EOI analyst assigned to the exchange will complete the following actions:

Within 30 calendar days after receipt of the exchange, the EOI analyst assigned to the exchange will complete the following actions:

The EOI analyst will prepare a cover memorandum and a Spontaneous Exchange Result Sheet for issuance of the information to the appropriate IRS office for risk assessment, ensuring every page of the cover memorandum, Spontaneous Exchange Result Sheet, and information received from the foreign Competent Authority include the appropriate text (“This information is furnished under the provisions of an international exchange agreement with a foreign government. Its use and disclosure must be governed by the provisions of that agreement.”). The EOI analyst will then issue the cover memorandum, Spontaneous Exchange Result Sheet, and information received from the foreign Competent Authority to the appropriate IRS office as follows:

The information exchanged is a summary template designed to assist tax administrations in risk assessment with respect to the following categories of tax rulings:

The compliance benefits which may result from a simultaneous examination include, but are not limited to:

Cases considered for simultaneous examination may involve, but are not limited to:

The initiating IRS office prepares the United States’ proposal for a simultaneous examination. The second-level management of the initiating IRS office reviews the proposal and forwards to the EOI Program Manager.

Within 60 calendar days after the receipt of a simultaneous examination proposal, the second-level management of the jurisdictional IRS office sends a memorandum to the EOI Program Manager, advising whether the IRS office will participate in the proposed foreign-initiated simultaneous examination.

Meetings may take place either in the United States or in the foreign jurisdiction. Therefore, the U.S. Designated Representative and other members of the examination team who are participating in meetings must obtain United States official passports through the LB&I International Travel Office. See IRM 1.32.5.4, Official and Diplomatic Passports.

Before the jurisdictions commence their examinations, the Designated Representative from the jurisdiction proposing the simultaneous examination may choose to organize an initial planning meeting. This meeting is held to:

If issues arise during a simultaneous examination which may lead to double taxation, the U.S. Designated Representative must inform the U.S. Competent Authority of the details in a memorandum to the EOI Program Manager as soon as practical.

Any participating jurisdiction may discontinue participation in a simultaneous examination at any time it concludes the simultaneous examination would no longer be of benefit.

Within 15 calendar days after the end of each calendar quarter, the U.S. Designated Representative must send a status report to the EOI Program Manager through the second-level management of the IRS examination office. The report must include:

Within 30 calendar days after the conclusion or discontinuance of a simultaneous examination, the U.S. Designated Representative must send a closing report to the EOI Program Manager through the second-level management of the IRS examination office. The report must include:

Since exchanges of information with a foreign jurisdiction may result from a simultaneous examination, taxpayers may raise issues to prevent information disclosures to a foreign Competent Authority.

The assigned EOI analyst works with IRS Criminal Investigation (CI) personnel:

Cases considered for simultaneous criminal investigation may involve, but are not limited to:

The initiating IRS CI Special Agent in Charge (SAC) or Supervisory Special Agent (SSA) prepares the United States' proposal for a simultaneous criminal investigation. The proposal is forwarded through the appropriate Deputy Director, Criminal Investigation, Field Operations, to the Deputy Director, CI:IO. CI:IO reviews the proposal and forwards to the EOI Program Manager. If a proposal is received by the EOI Program directly from a SAC or SSA, the assigned EOI analyst will direct the SAC or SSA to resubmit the proposal through the appropriate Deputy Director, Criminal Investigation, Field Operations, to CI:IO for initial review.

Within 60 calendar days after the receipt of a simultaneous criminal investigation proposal, the SAC sends a memorandum to the EOI Program Manager, advising whether the CI office will participate in the proposed foreign-initiated simultaneous investigation.

Meetings may take place either in the United States or in the foreign jurisdiction. Therefore, the U.S. Designated Representative and other members of the investigation team who are participating in meetings must obtain United States official passports through the LB&I International Travel Office. See IRM 1.32.5.4, Official and Diplomatic Passports. (CI agents secure official passports and visas from LB&I through coordination with CI management.)

Before the jurisdictions begin their investigations, the Designated Representative from the jurisdiction proposing the simultaneous criminal investigation may choose to organize an initial planning meeting. This meeting is held to:

Any participating jurisdiction may discontinue participation in a simultaneous criminal investigation at any time it concludes the simultaneous investigation would no longer be of benefit.

The following United States tax treaties, identified respectively by jurisdiction, type of treaty, and treaty article, currently provide for mutual collection assistance:

The EOI analyst assigned to the MCAR must fulfill the following responsibilities:

The following conditions must be met for an MCAR to be considered valid. Generally, these prerequisites are satisfied by an affirmative statement in the request where such information is not readily able to be confirmed, absent reason to question such statement:

The request must also be accompanied by a datasheet listing the elements of the debt, as follows:

Upon receipt of a foreign MLAT request from DOJ OIA, CI:IO reviews the request. If the request requires the production of returns or return information, CI:IO forwards the request for this information with a cover memorandum to the EOI Program. The request is then assigned to an EOI analyst. Any other aspects of the foreign request, such as required investigative assistance, are processed by CI:IO without the involvement of the EOI Program.

The assigned EOI analyst will conduct a preliminary review of the MLAT request and the underlying treaty to confirm the following:

If the DOJ OIA referral letter or CI:IO referral memorandum is missing, the EOI analyst should contact CI:IO to obtain copies of these documents.

When the preliminary review is complete, the EOI analyst prepares a cover memorandum and forwards the MLAT request to ACCI-Br7 for review. The referral package for ACCI-Br7 includes the foreign-initiated request and English translation if applicable, the corresponding DOJ OIA letter, the CI:IO memorandum, and EOI’s determination as to whether the request seeks return information, taxpayer return information, or both.

If the MLAT request seeks tax information for use in a foreign criminal non-tax administration matter, upon review of the request, ACCI-Br7 provides to the DOJ Tax Division a legal opinion letter confirming that disclosure is appropriate under the statute and summarizing any preconditions to disclosure as necessary. In the letter, copied to DOJ OIA, ACCI-Br7 requests that the DOJ Tax Division assist by helping secure one of the following documents:

In the case of information obtained by a (k)(4) letter, after the return copies have been obtained and certified and any other requested return information has been obtained, the EOI analyst proceeds to the actions described in paragraph (10) below. In the case of information obtained by an (i)(1) court order or (i)(2) request, the EOI analyst transmits the following information to the IRS Privacy, Governmental Liaison and Disclosure (PGLD) business unit’s Disclosure Headquarters office (Disclosure) under the approval of EOI management:

After reviewing the above transmittal, Disclosure provides to the EOI analyst a memorandum authorizing disclosure of the returns and return information to the foreign Central Authority under the MLAT. (For more information about Disclosure’s role pertinent to MLAT requests, see IRM 1.2.2.12.2, Delegation Order 11-2, Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents, and IRM 1.2.2.12.5, Delegation Order 11-5, Seal of the Office of the Internal Revenue Service and Certification to the Authenticity of Official Documents.)

After obtaining and certifying the returns and return information (in the case of information obtained by a (k)(4) letter), or after obtaining the above authorization to disclose the returns and return information from Disclosure (in the case of information obtained by an (i)(1) court order or (i)(2) request), the EOI analyst submits the below information to EOI management for signature by a party authorized under Delegation Order 4-12 (Rev. 4):

The EOI Program’s review of a FOIA request related to an international exchange of tax-related information entails evaluation of the material being considered for release to the requesting taxpayer under the standards, exemptions, and exclusions set forth under FOIA (5 USC 552), relevant case law, and administrative guidance issued by the U.S. Department of Justice. More information about these standards, exemptions, and exclusions can be obtained from the Department of Justice’s Office of Information Policy.

Upon initial review of the referral, the EOI analyst should assert all applicable FOIA exemptions and exclusions and identify any other defects pertinent to IRC 6103 and IRC 6105. The EOI analyst should not assume the EOI Program will be afforded any additional opportunities to assert additional exemptions, exclusions, or defects in case a previous assertion is found inapplicable or otherwise invalid.

The EOI analyst’s review of the information referred by Disclosure must include the following items:

The EOI analyst’s review of the information may also include a review of other sensitive information, including, but not limited to, third-party personally identifiable information (PII), intellectual property, or trade secrets. In addition, where information referred to the EOI Program by Disclosure contains material, or references thereto, the release of which to the public would be inconsistent with IRS FOIA and disclosure policy, the EOI analyst should recommend redaction or withholding, as appropriate, if not already identified by Disclosure. Such material may include, but is not necessarily limited to, databases, systems, or other documentation utilized by the IRS which contain taxpayer or other sensitive information (e.g., certain reports and/or data from IDRS, Related Statute Memoranda, unrelated data from Accurint, etc.); information containing or referencing other sensitive, non-public federal, state, and local government data (e.g., Suspicious Activity Reports (SARs), U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) documents, etc.); and information containing or referencing internal IRS discussions or references to fraud. Disclosure office guidance covering releasable and nonreleasable material is further detailed in IRM 11.3.13, Freedom of Information Act.

IRS employees may access FATCA data, provided there is a business need and the employee completed ITM course #82641 - AEOI Use and Disclosure training. For more information, refer to Requesting FATCA Data.

Employees must submit a FATCA Data Disclosure Approval Request when FATCA data is intended to be used in the following circumstances:

Employees (including IRS field offices, Office of Chief Counsel and the Assistant U.S. Attorney’s office) must submit a FATCA FBAR Approval Request when FATCA related information is intended to be used in conjunction with Title 31 FBAR and the IRS received the FATCA data pursuant to an IGA.

Properly completed requests require, among other items:

The listings display specific details on each inquiry including:

In a Joint Audit:

Prerequisites for a Joint Audit between two or more tax administrations include:

The U.S. JAC is the JITSIC Senior Revenue Agent assigned to the Joint Audit or APMA representative assigned to the Joint Audit where the Joint Audit includes a transfer pricing issue. The U.S. JAC has primary responsibility for the coordination, facilitation, and general guidance of the Joint Audit process. The JAC facilitates the following:

The IRS Joint Audit Team Leader will generally be the Issue Manager responsible for the IRS examination, or in some cases, the Revenue Agent assigned primary responsibility for the issues related to the Joint Audit. The IRS Joint Audit Team Leader will primarily work the Joint Audit Issues and lead work on the Joint Audit Issues by the IRS members of the Joint Audit Team. The IRS Joint Audit Team Leader will be responsible for the following:

Whether notification of a Joint Audit is performed orally or in writing, the IRS audit team is responsible for sharing the following Joint Audit information with the taxpayer: