Exchange of Federal Tax Information With State Tax Agencies
Individual Tax Models used by State tax agencies in determining their rate structure; Individual/Business Master File Tax Data Extracts; Individual/Business Returns Transaction File Extracts; Information Returns Master File Extracts.
The Department of Treasury is a steward of United States economic and financial systems, and promotes conditions for prosperity and stability in the U.S., and encourages prosperity and stability in the rest of the world.
Program Accomplishments
The Internal Revenue Service has written agreements with state agencies representing 50 states, the District of Columbia, American Samoa, Guam, Puerto Rico, the Virgin Islands, New York City, Louisville, St. Louis, Cincinnati, Cleveland, Toledo, Philadelphia, Pittsburgh, Detroit, Kansas City, Columbus, the city of Lexington-Fayette Urban County Government, Regional Income Tax Authority (RITA), Ohio Central Collection Agency (CCA), and Jefferson County Government.
Uses and Use Restrictions
State tax agencies may use the tax data provided for justified tax administration purposes only, pursuant to Internal Revenue Code (IRC) Section 6103.
Any unlawful disclosure of Federal tax data subjects the violator to both criminal and civil penalties specified in IRC Sections 7213, 7213A and 7431.
Eligibility Requirements
Applicant Eligibility
Any agency responsible for tax administration within any of the 50 States, the District of Columbia, certain U.S.
Territories, and municipalities with populations in excess of 250,000 that impose taxes on income or wages and with which the Commissioner of Internal Revenue has entered into a disclosure agreement with safeguard and confidentiality protections.
Beneficiary Eligibility
State Governments, U.S. Territories, Municipal Governments.
Credentials/Documentation
Agency head must enter into Agreement with the Commissioner of IRS regarding disclosure.
Aplication and Award Process
Preapplication Coordination
None.
This program is excluded from coverage under E.O.
12372.
Application Procedures
There are a variety of application procedures depending on the circumstances. For the Governmental Liaison Data Exchange Program which includes recurring aggregate data extracts, applicants complete an Annual Registration Form. For specialty programs such as ATAT and EOAD/Fedstar, applicants sign a Memorandum of Understanding (MOU). For individual or one-time requests, applicants send a written request to the Disclosure Office, in their area jurisdictions. Addresses can be found by clicking "IRS Disclosure Offices" on http://www.irs.gov/foia/.
Award Procedures
Not applicable.
Deadlines
None.
Authorization
Internal Revenue Code, as amended, 26 U.S.C. 6103(d).
Range of Approval/Disapproval Time
Not applicable.
Appeals
Not applicable.
Renewals
Not applicable.
Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula nor matching requirement.
Length and Time Phasing of Assistance
Not applicable.
Post Assistance Requirements
Reports
Agency Officials are required to submit a Safeguard Procedures Report 45 days prior to receipt of Federal tax data, and an annual Safeguard Activity Report.
6103 Accounting Report for the Joint Committee on Taxation is an annual report filed by IRS to show the number of disclosures made on an annual basis.
Audits
On-site Safeguard Reviews will be conducted by IRS personnel every three years to ensure confidentiality and security of Federal tax data. On-site Need and Use Reviews are conducted tri-annually, in conjunction with the Safeguard Review, by IRS personnel to confirm that agencies receiving Federal Tax Information have a need for the data, and to ensure the agencies are using the data for tax administration purposes.
Records
Agencies are required to maintain a system of standardized records of requests for inspection or disclosure.
Financial Information
Account Identification
20-0912-0-1-803.
Obigations
(Support and Services) FY 07 est not available; FY 08 est not available; and FY 09 est not available. (Note: In 1994, IRS decided to waive the fees charged to State and local agencies. These agencies can obtain tax data extract information through various IRS disclosure offices for free).
Range and Average of Financial Assistance
Not applicable.
Regulations, Guidelines, and Literature
- Internal Revenue Manual 11.3.32, Disclosure of Official Information, Disclosure to States for Tax Administration Purposes, found at http://www.irs.gov/irm/part11/ch03s34.html - Publication 1075, Tax Information Security Guidelines, found at http://www.irs.gov/pub/irs-pdf/p1075.pdf.
Information Contacts
Regional or Local Office
Disclosure Officer, in all area jurisdictions, found at http://www.irs.gov/foia/article/0,,id=120681,00.html.
Headquarters Office
Director, Governmental Liaison and Disclosure, complete addresses can be found in local directories, Internal Revenue Service, Room 2010, 1111 Constitution Ave., NW., Washington, DC 20224. Telephone: (202) 622-6200. Use the same number for FTS. Office of Safeguards Internal Revenue Service (OS/MA/PR/S), 1111 Constitution Ave., NW, IR-3619, Washington, DC 20224. E-mail: SafeguardReports@irs.gov.
Criteria for Selecting Proposals
Not applicable.
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