part11-9
- 11.3.4.1
Background - 11.3.4.2
Disclosure to Members of Congress - 11.3.4.3
Disclosure to Committees of Congress - 11.3.4.4
Processing Requests for Disclosure - 11.3.4.5
Disclosure of Tax Exempt and Government Entities Information - 11.3.4.6
Disclosure for IRC §6405 Cases - 11.3.4.7
Disclosure Under IRC §8023 - 11.3.4.8
Disclosure of Other Than Tax Information
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Members of Congress have access to tax information
under IRC §6103(c) as a designee of
a constituent taxpayer or under IRC §6103(f) as
a member of a tax writing committee of Congress. -
IRM 11.3.3, Disclosure to Designees and Practitioners, describes in more
detail the procedures for accessing tax information under IRC §6103(c)
and its regulation, 301.6103(c)-1, as summarized in
IRM 11.3.4.2 below. -
IRM 11.3.4.3 below, describes the provisions of IRC §6103(f).
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Members of Congress in their individual capacity
are entitled to no greater access to returns or return information than any
other person inquiring about the tax affairs of a third party. -
Disclosure of returns and return information to
a taxpayer’s designee, including a member of Congress inquiring on behalf
of a constituent, may be made only in accordance with
IRC §6103(c). -
Generally, IRC §6103
provides that returns and return information are protected from
disclosure and can only be disclosed as authorized by the IRC. The IRC authorizes
disclosures to third parties after a request or authorization under IRC §6103(c)
is obtained from the taxpayer. Treasury Regulation 301.6103(c)-1 allows the
use of non-written consents, where the third party is assisting the taxpayer
in resolving a Federal tax related matter. Functional procedures must be followed
in honoring such consents.Note:
The
majority of Congressional correspondence received by the Internal Revenue
Service (IRS), is controlled by the Taxpayer Advocate Service, Congressional
Affairs Program.
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In many instances when taxpayers correspond with
a member of Congress about some action the IRS has or has not taken with respect
to their tax matters, they do not provide a separate authorization; nor do
they execute a formal consent authorizing the member of Congress to obtain
information about their tax affairs. In such situations, the regulations provide
that the taxpayer’s letter will authorize the disclosure to the extent
it is signed, dated, and indicates the following:-
The taxpayer’s identity; name, address or
SSN/EIN, or any combination thereof that enables the IRS to clearly identify
the taxpayer. -
The identity of the person to whom disclosure is
to be made. Any information that enables the IRS to clearly identify to whom
disclosure is to be made will suffice. A letter addressed ”
Dear Sir,”
which does not specifically refer to the member of Congress
in the letter would not be sufficient. However, if the member of Congress
forwarded the taxpayer’s letter with the envelope showing the letter
had been addressed to him/her, this would be sufficient. -
Sufficient facts to enable the IRS to determine the nature and extent
of the information or assistance requested and the returns or return information
to be disclosed. The IRS must limit its response to the situation presented
by the taxpayer and only disclose the returns or return information necessary
to comply with the taxpayer’s correspondence. Where a taxpayer authorizes
disclosure in a tax matter for “all years”
and/or “all returns”
or similar phrase, such authorization will be
acceptable. However, the Congressional inquiry must present sufficient facts
regarding a specific tax matter so the IRS can comply with the request. In
cases where the taxpayer has authorized disclosure for “all
years”
or “all returns,”
the taxpayer, by his/her
own choice, has specified that all information is available to the member
of Congress. Coupled with the explanation in the Congressional inquiry, the
IRS may respond to the specific tax matter at issue. -
An authorization to a member of Congress will be construed to include
a member of the Congressperson’s staff designated in the Congressperson’s
inquiry, identified in a general designation from the Congressperson, or known
to be the Congressperson’s staff person for dealing with constituents’
tax inquiries. Likewise, an authorization to a staff member of the Congressperson
in their capacity as staff member handling constituent inquiries includes
the Congressperson as well. Should the Congressperson become incapacitated
or die in office requiring a long term actor or designee to be appointed to
fill the term, authorizations may be construed to remain in effect for that
Congressional office. If there is any doubt that the taxpayer would want continuing
disclosures in these situations, contact with the taxpayer should be made
to determine what the taxpayer wishes.
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A Congressional inquiry which attaches a courtesy
copy of a letter from a taxpayer to another member of Congress will not be
honored as a valid waiver of the taxpayer’s confidentiality. An exception
to this rule will be made when the taxpayer includes a signed addendum requesting
the assistance of the member who forwarded the correspondence to the IRS,
and the letter otherwise meets the above requirements for a valid disclosure
authorization. If the letter in its body clearly indicates a desire for a
courtesy copy (cc) recipient(s) to receive tax information, such a notation
will satisfy the consent requirements assuming all other elements are present.Note:
A copy sent to a Congressperson that is marked “action
copy”
as opposed to “cc”
can be processed in accordance
with (1) above. The “action copy”
notation expresses the
taxpayers intention that the recipient pursue the tax matter in question
and in the process have access to tax information.
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If a member of Congress does not enclose a copy
of the taxpayer’s correspondence or other written authorization from
his/her constituent, communications containing tax information may occur only
with the taxpayer. The member of Congress should be provided general information
to the extent possible. The member of Congress should receive some communication
from the IRS informing him or her that due to disclosure issues, the IRS is
communicating directly with the taxpayer. An alternative approach would be
to ask the member of Congress for a copy of the taxpayer’s correspondence
or other written authorization. In addition, it is permissible for the IRS
to contact the taxpayer, inform him/her of the Congressional inquiry, and
obtain from the taxpayer (if the taxpayer so wishes), a written or non-written
consent consistent with Treasury Regulation 301.6103(c)-1 and IRS functional
procedures. -
If the member of Congress does not provide a copy
of the taxpayer’s request, any correspondence directly with the taxpayer
should indicate the request was made by the member of Congress. Also, the
member of Congress should be told of the procedures for getting returns or
return information.
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Occasionally a member of Congress, or more likely
a member of his/her staff, will telephone the Congressional liaison in the
Office of the Taxpayer Advocate Service, Congressional Affairs Program, on
behalf of a taxpayer. In such situations, the IRS may provide only general
information such as the meaning of a particular bill, notice, or letter. The
caller should be advised that the IRS cannot disclose confidential returns
or return information without a copy of the taxpayer’s correspondence
or other authorization. See IRM 11.3.3, Disclosure to Designees and Practitioners, and/or functional
procedures for instructions on how to handle taxpayer inquiries, where oral
authorization is given to a designee (such as a Congressperson) to help resolve
a Federal tax matter. As an alternative, the IRS can offer to contact the
taxpayer directly to resolve the problem. -
A member of Congress may request the IRS to telephone
a staff member and give information needed to respond to a constituent. In
such cases the IRS may provide the information as long as the Congressional
inquiry is in writing, and it includes the taxpayer’s authorization.
The oral disclosure must be limited to the return information that will be
provided to the member of Congress in the IRS’s written response.
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If a member of Congress inquires about a pending
court action (other than before the United States Tax Court) involving a constituent,
the inquiry should be referred to Chief Counsel. -
If a member of Congress inquires about a constituent’s
Tax Court case which is jointly under Commissioner and Chief Counsel jurisdiction,
information in the “public record”
(taxpayer’s petition,
statutory notice of deficiency, answer, reply, etc.) may be provided if the
public record information comes from the public source and is attributed as
such. If the constituent has authorized disclosure to the member of Congress
in accordance with the requirements for a valid disclosure authorization,
it is not necessary to rely on the public record exception for disclosure.
Information can be disclosed as provided for in the disclosure authorization.
Responses to the inquiries should be coordinated with Counsel. -
If a member of Congress inquires about a constituent’s Tax Court
case which is under the sole jurisdiction of Chief Counsel, the inquiry should
be referred to Chief Counsel for reply.
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Ordinarily, a Congressperson receives confidential information about
a taxpayer based on a consent signed by the taxpayer pursuant to IRC §6103(c) and its regulation or based upon an
authorization signed by a taxpayers Power of Attorney who has been given
specific permission to authorize disclosures to third parties. It is unlikely
that a Congressional inquiry will be based on an attorney in fact arrangement
or a practice before IRS authorization. See IRM 11.3.3.1.6
, Disclosure to an Attorney-in-Fact. This
is important to remember when working IRC §6103(e)(9)
requests. While IRC §6103(e)(6) allows
responsible persons to authorize attorneys in fact to access the covered trust
fund recovery information, those designees must be attorneys in fact. -
IRC §6103(e)(9) deals with access to third party tax information;
therefore, an IRC §6103(c) consent cannot be used by a designee of a
responsible person to access what is available to the designating responsible
person under IRC §6103(e)(9).
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IRC §6103(f)(1) permits
disclosure of specified returns and return information to the Committee on
Ways and Means of the House of Representatives, the Committee on Finance of
the Senate, or the Joint Committee on Taxation upon written request of the
chairperson of such committee. Tax records which identify, directly or indirectly,
any taxpayers may be furnished to the requesting committee only in closed
executive session unless the taxpayers otherwise consent in writing to such
disclosures. -
IRC §6103(f)(2) permits
disclosure of specified returns and return information upon written request
of the Chief of Staff of the Joint Committee on Taxation. -
IRC §6103(f)(3) applies
to committees other than those named in IRC §6103(f)(1). When specifically
authorized by a Senate, House, or concurrent (in the case of a joint committee)
resolution, the committee’s chairperson may make written request for
disclosure to any authorized committee, joint committee or subcommittee thereof.
Tax records may be furnished only when such committee, joint committee, or
subcommittee is sitting in closed executive session unless the taxpayer otherwise
consents in writing to such disclosures. -
IRC §6103(f)(4)(A) authorizes
any of the committees described in (1) above or the Chief of Staff of the
Joint Committee on Taxation to designate, by such Chairman or Chief of Staff,
agents to whom disclosures of returns and return information may be made.
The authority of IRC §6103(f)(4)(A) is exercised in conjunction with
that in IRC §6103(f)(1) or IRC §6103(f)(2)
, as appropriate. -
IRC §6103(f)(5) specifically
authorizes disclosures to Committees of Congress under the ”
whistle blower”
provision. The provision allows persons having (or having
had) access to taxpayer information to expressly disclose tax information
to the Chairperson (or full committee sitting in closed executive session)
of one of the tax writing committees listed in IRC §6103(f)(1) or their
IRC §6103(f)(4) designated agent if such person believes the disclosure
may relate to possible misconduct, maladministration, or taxpayer abuse.
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Written requests for tax information from the
House Committee on Ways and Means, the Senate Committee on Finance, or the
Joint Committee on Taxation under the authority of
IRC §6103(f)(1) should be signed by the chairperson of the
requesting committee. Requests that the tax information be furnished to designated
agents, under the authority of IRC §6103(f)(4)(A)
, should also be signed by the chairperson of the requesting committee.
A committee chairperson may also request that the IRS furnish returns and
return information to a subcommittee and that subcommittee may subsequently
request the designated information in connection with specifically described
types of inquiries. Such requests by a subcommittee should be signed by the
subcommittee chairperson. A request for tax information under IRC §6103(f)(1)
or §6103(f)(4)(A) must be sufficiently specific. -
Identifying information such as name, address,
taxpayer identification number (SSN or EIN), taxable periods, kind of tax
or description of documents helps the IRS promptly locate requested records.
In situations where a committee is interested in a particularized line of
inquiry and the parameters of the inquiry are clearly set forth in the request,
this information may not be needed. -
In order to be fully responsive, the IRS must
know when and in what manner the committee wishes to receive the tax information. -
Under the authority of IRC §6103(f)(4)(A),
any of the tax-writing committees, through their chairperson or Chief of Staff
of the Joint Committee on Taxation, may designate its committee members or
staff persons, a subcommittee or subcommittee members or staff persons, or
other persons to act as its agents. For example, the tax writing committees
often designate certain Government Accountability Office persons to act as
agents of these committees for the purpose of conducting particular studies
of IRS activities. (See IRM 11.3.23, Disclosure of Information to the Government Accountability Office
(GAO), for further information.) Telephone numbers, as well as the
names of the designees, are helpful when responding to the committee’s
request. -
If the IRS’s ability to fully and/or expeditiously
respond to a request is hampered by the absence of information described in
(2), (3), and (4) above, the IRS will contact the committee to ask if this
information is available.
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Written requests under
IRC §6103(f)(2) should be signed by the Chief of Staff, and
should include the same kinds of information specified in
IRM 11.3.4.3.1(2)-(3) above. -
If, under IRM §6103(f)(4)(A)
, the Chief of Staff wishes to designate agents to act on his/her
behalf, the request should so indicate and should include the name(s) and
telephone number(s) of the person(s) so designated.
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Written requests for access to tax records by
any committee other than those named in IRM §6103(f)(1)
should also be signed by the committee chairperson. The request
should include a copy of the Senate, House, or concurrent resolution, as appropriate,
which authorizes the designated committee to have access to returns and/or
return information. The resolution should specify the purpose for which tax
records are needed and include a statement that such information cannot reasonably
be obtained from any other source. A resolution obtained by a committee of
the House of Representatives under IRC §6103(f)(3)
is effective for the life of that Congress during which it was
passed unless the resolution itself specifies an earlier expiration date.
A resolution obtained by a Senate committee is effective indefinitely unless
the resolution itself specifies an expiration date. -
See IRM 11.3.4.3.1 above, for
a discussion of information which would be helpful in expediting the request. -
Under IRC §6103(f)(4)(B)
, the chairperson and ranking minority member of any committee
authorized by resolution to have access to tax records, may designate in writing
and in equal numbers no more than four agents (total for the committee) to
act on behalf of the committee. Such written designation of agents should
be furnished to the IRS along with the chairperson’s request and a copy
of the appropriate Senate, House, or concurrent resolution. The designation
of agents may be a letter signed by both the chairperson of the committee,
joint committee, or subcommittee and the ranking minority member designating
no more than four agents and attesting that the agents were designated in
equal numbers. Alternatively, the written designation required by IRC 6103(f)(4)(B)
may consist of separate letters from the chairperson and ranking minority
member of the committee, joint committee, or subcommittee with each letter
designating no more than two agents in equal numbers. The latter method allows
the chairperson and/or ranking minority member to change designated agents
more easily should this become necessary. -
If the IRS’s ability to fully and/or expeditiously
respond to a request is hampered by the absence of the information described
in IRM 11.3.4.3.3(1)-(2) above, the IRS will contact the committee to ask
if this information is available.
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The Commissioner’s Office through Legislative
Affairs should be informed immediately of any non Taxpayer Advocate oral or
written request for tax information from a Congressional committee under IRC §6103(f). The Director, Legislative Affairs
is designated as the point of contact for the Commissioner’s Office.
Requests should be communicated through channels to the appropriate Divisional
or Functional head of office, who will contact the Director, Legislative Affairs.
The Taxpayer Advocate Congressional liaison will be conducted consistent with
the statutes and procedures for that office. -
The Director, Legislative Affairs or the Director,
Office of Governmental Liaison and Disclosure will authorize the Headquarters
or field official having custody of the information to make the disclosure
(may be written [including electronic] or oral). Normally, the IRS component
having custody of the information will prepare the disclosure accountings.
See IRM 11.3.37, Recordkeeping
and Accounting for Disclosures. No disclosures will be made prior to
such authorization. Accountings for disclosure as required by
IRC §6103(p)(3)(A) must be made. -
Questions relating to the disclosability of the
information and/or documents should be referred to the Director, Office of
Governmental Liaison and Disclosure. -
Action on a committee’s request must receive
high priority. In the event all the documents requested cannot be furnished
expeditiously, the person(s) named in the request should be contacted to determine
whether the committee wishes to receive the documents as they become available. -
If the committee wishes to have its agent(s) inspect
documents rather than, or prior to, receiving copies, the office authorized
to make the disclosure will, after securing all the requested records which
may be made available, make arrangements with the agent(s) for inspection
at such time and place as the committee wishes. Such inspection should be
conducted in the presence of an IRS employee, and should comply with the procedures
outlined in IRM 11.3.4.4, as applicable. -
If the documents are not available at the time
the authorization for disclosure is issued, the Office of Legislative Affairs
will provide an interim response to the requesting committee advising which
IRS office has responsibility for complying with its request. -
Grand Jury information may not be included in
documents disclosed to Congressional committees. IRS employees processing
a committee request should remove all grand jury information. See IRM 11.3.27, Disclosure of Returns and
Return Information to Grand Juries, for additional information on handling
Grand Jury information. -
Generally, secrecy clauses in tax treaties between
the United States and foreign governments provide for disclosure of exchanged
information only to persons concerned with the assessment, collection, enforcement,
and prosecution of taxes which are the subject of the treaties. The tax-writing
committees of Congress (House Ways and Means Committee, Senate Finance Committee
and Joint Committee on Taxation) are considered to be persons ”
concerned with”
the assessment, collection, enforcement, and prosecution
of taxes which are the subject of tax treaties. These tax-writing Congressional
committees and the Government Accountability Office (when acting as agent(s)
of these committees) should be afforded access to treaty information when
necessary to carry out their oversight responsibilities. However, if a Congressional
committee request from other than a tax-writing committee involves information
disclosed to the IRS by a foreign government pursuant to a tax treaty, such
information should not be disclosed to the committee or its agents. -
Certain information may be disclosed to Congressional
committees only with the expressed approval of the Commissioner. In the absence
of such approval, the following information should be removed before disclosure:-
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Records which identify, directly or indirectly, an informant, unless the
IRS has received a written waiver of confidentiality from the informant with
respect to the particular Congressional committee -
LEM material
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Originals of documents are retained in the custody
of the IRS and may not be released except in unusual circumstances and only
after the Commissioner’s approval has been obtained. -
The scope of an authorization for disclosure to
a Congressional committee may not be altered. If an IRS employee is asked
to alter the scope of an authorization, he/she should decline. -
If a committee request includes TIGTA reports
as well as confidential tax records, the Office of Governmental Liaison and
Disclosure will coordinate the part of the request concerning the TIGTA reports
with TIGTA prior to the issuance of a response. A committee request which
relates only to TIGTA reports which do not involve returns or return information
will also be coordinated with TIGTA. If the request does not comply with the
provisions of IRC §6103(f), any confidential tax information contained
in the requested reports must be removed prior to disclosure. -
Records relating to cases which are under active
investigation may be disclosed if, in the opinion of the appropriate functional
head, no serious adverse effect on the administration of the tax laws will
result from disclosure of the open case records. In making this decision,
consideration must be given as to whether the matter is criminal or civil.
In the event disclosure of such records would adversely affect tax administration,
the IRS office authorized to comply with a committee request will notify the
Director, Legislative Affairs, so that the committee may be advised that certain
of the requested records relate to an active investigation and that the IRS
requests that access be deferred until such time as the matter is resolved. -
When mailing confidential tax records to a committee
or to a designated agent thereof, IRS employees should follow the procedures
outlined in IRM 1.22, Mail
and Transportation Management. If documents requested by a Congressional
committee are personally obtained from an IRS office by an authorized agent
of the committee, the IRS employee turning the documents over to the agent
should examine the agent’s identification credentials to verify that
the person is actually the committee’s designated agent. A receipt for
documents furnished to a designated agent should be obtained from the agent. -
Each IRS employee making disclosures to a Congressional
committee is responsible for preparing the recordkeeping documents ( Form 5466-B, Multiple Records of Disclosure,
and/or Form 5482,
Record of Disclosure), required by IRC §6103(p)(3)
and, as applicable, by the Privacy Act of 1974. For specific information
concerning these accounting requirements, see IRM 11.3.19
, Privacy Act Accounting of Disclosures,
and IRM 11.3.37, Record Keeping
Accounting for Disclosures.
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IRC §6104(a)(2) states
that the provisions of IRC §6103(f) apply
with respect to disclosures of certain exempt organization and employee plan
documents to the extent that such information is not otherwise available for
public inspection. -
For information concerning which exempt organization
records are not available to the public and must be requested by Congressional
committees in accordance with the provisions of IRC §6103(f), see IRM 11.3.9, Exempt Organization Information
. -
For information concerning which employee plan
records are not available to the public and must be requested by Congressional
committees in accordance with the provisions of IRC §6103(f), see IRM 11.3.10, Employee Plans Information
, and appropriate regulations.
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IRC §6405 obligates
the Joint Committee on Taxation to review proposed refunds in excess of $2,000,000.
The IRS furnishes tax data concerning such refund cases to the committee to
enable it to fulfill its oversight responsibilities. This data includes return
information of the subject of the proposed refund. It may also include third
party return information if the third party information has a direct relationship
to the subject taxpayer’s refund. -
Third party information which is not related to an item or transaction
concerning the subject’s tax refund may not be disclosed to the committee. -
If unrelated third party information is desired by the committee, a
written request should be submitted pursuant to IRC
§6103(f)(1) or (2).
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IRC §8023 authorizes
the Joint Committee on Taxation or the Chief of Staff of the Joint Committee
to obtain returns and return information for the Committee’s use in
making investigations, reports, and studies relating to the IRS’s administration
of internal revenue taxes. -
IRC §8023 is considered the basis for disclosure
of tax records only when the Joint Committee is conducting an overall analysis
of issues in tax administration which involves random selection of returns
and other relevant information dealing with these issues. -
IRC §8023 should not be used as the basis for disclosures of particular
information on an individual taxpayer.
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The procedures outlined in
IRM 11.3.4.4 above, do not apply to Congressional committee requests
for IRS documents which do not contain returns or return information. -
Generally, committee requests for this kind of
material are routed to the appropriate function for response. -
Committee requests for TIGTA reports which do
not include returns or return information will also be coordinated with TIGTA. -
Committee requests for statistical studies or
for statistical information in an anonymous form, as described in IRC §6108, should be routed to the Statistics of
Income function for processing.
