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
INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
Authorization
Internal Revenue Code, as amended, 26 U.S.C. 6103(d).
Program Number
21.004
Last Known Status
Active
Objectives
To increase 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 and 7431.
Eligibility Requirements
Applicant Eligibility
State tax agencies, U.S. Territories, and Municipalities with populations in excess of 250,000 that impose taxes on income or wages.
Beneficiary Eligibility
State Governments, U.S. Territories, Municipal Governments.
Credentials/Documentation
Agency head must enter into Agreement with the Commissioner of IRS regarding disclosure.
Application and Award Process
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.
Application Procedure
Agency Officials should send a written request to the District Director, Internal Revenue Service, Attention: Disclosure Officer, in their area jurisdictions. Addresses can be found in local directories.
Award Procedure
Not applicable.
Deadlines
None.
Range of Approval/Disapproval Time
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 within 30 days after receipt of Federal tax data, and an annual Safeguard Activity Report.
Audits
On-site safeguard reviews will be conducted by IRS personnel as needed to ensure confidentiality and security of Federal tax data, with a minimum requirement of a review once every five years.
Records
Agencies are required to maintain a system of standardized records of requests for inspection or disclosure.
Program Accomplishments
The Internal Revenue Service has written agreements with 126 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, Kansas City, and Columbus.
Financial Information
Account Identification
20-0912-0-1-803.
Obligations
(Support and Services) FY 02 $0; FY 03 est $0; and FY 04 est $0. (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 1272, Disclosure of Official Information Handbook, Chapter 33; Document 6501, Federal/State Exchange Program; (Official Use Only) Document 6724 Consolidated Listing of Tax Information Exchanged between State Agencies and the Internal Revenues Services for tax Administration purposes. Publication 1075, Tax Information Security Guidelines.
Related Programs
None.
Information Contacts
Regional or Local Office
District Director, Internal Revenue Service, Attention: Disclosure Officer, in all area jurisdictions.
Headquarters Office
Director, Governmental Liaison and Disclosure, complete addresses can be found in local directories, Internal Revenue Service, Room 7331, 1111 Constitution Ave., NW., Washington, DC 20224. Telephone: (202) 622-6200. Use the same number for FTS.
Web Site Address
Examples of Funded Projects
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.
Criteria for Selecting Proposals
Not applicable.
