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

http://www.irs.gov

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.