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Exchange of Federal Tax Information With State Tax Agencies (21.004)
Program
21.004 Exchange of Federal Tax Information With State Tax Agencies
Federal Agency
Agency: Department of the Treasury
Office: Internal Revenue Service (IRS)
Authorization
Internal Revenue Code, Executive Order As Amended, Title 26, Part 6103, Section d, 26 U.S.C 6103d.
Program Number
21.004
Last Known Status
Active
Objectives
To increase state tax revenues and taxpayer compliance, and to reduce duplicate resource expenditures.
Types of Assistance
PROVISION OF SPECIALIZED SERVICES
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. 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. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process
Preapplication Coordination
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. 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, 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 Procedure
Not applicable.
Deadlines
Not Applicable.
Range of Approval/Disapproval Time
Annual Governmental Liaison Data Exchange Program Enrollment Form must be completed annually by state agencies and must also be approved by the Disclosure Manager. For specialty programs such as ATAT and EOAD, 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/.
Appeals
Not Applicable.
Renewals
Governmental Liaison Data Exchange Program Enrollment Form must be submitted by state agencies and approved annually by the Disclosure Manager. For specialty programs such as ATAT and EOAD, and other programs that require a Memorandum of Understanding (MOU) procedures vary based on the terms of the MOU.
Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
Not Applicable. See the following for information on how assistance is awarded/released: Not Applicable.
Post Assistance Requirements
Reports
Audits
Not Applicable.
Records
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.
All records must be maintained as required by IRC 6103(p)(4).
Program Accomplishments
Fiscal Year 2009: No Current Data Available Fiscal Year 2010: The Internal Revenue Service has written agreements with state agencies representing 50 states, the District of Columbia, US territories and qualifying municipalities on the exchange of Federal Tax Information for the purposes of tax administration. The states use this information for compliance purposes generating significant tax revenues. Fiscal Year 2011: No Current Data Available
Financial Information
Account Identification
20-0912-0-1-803.
Obligations
(Provision of Specialized Services) FY 08 $0; FY 09 est $0; FY 10 est $0 - 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
NA.
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.
- Tax Information Security Guidelines Title 26 Code of Federal Regulations
Related Programs
Not Applicable.
Information Contacts
Regional or Local Office
See Regional Agency Offices. Disclosure Officer, in all area jurisdictions, found at http://www.irs.gov/foia/article/0,,id=120681,00.html.
Headquarters Office
Judy Krebs 1500 Ormsby Station Court, Louisville, Kentucky 40223-4019 Email: Judy.Krebs@irs.gov Phone: (502) 420-1621
Web Site Address
Examples of Funded Projects
Not Applicable.
Criteria for Selecting Proposals
Not Applicable.
Related Exchange of Federal Tax Information With State Tax Agencies Federal Grants
Other Department of the Treasury Agencies