IRC § 6103(d)(1) authorizes the Service to disclose federal returns and return information to state revenue agencies for use in state tax administration. The mission of the Service’s Governmental Liaison program is to facilitate joint activities and projects with other government agencies to improve compliance with federal, state and local tax laws. This enables the Service and other federal, state and qualifying local agencies to perform their responsibilities more efficiently and effectively. See IRM 11.4.1, Governmental Liaison Operations, et seq. The Office of Governmental Liaison serves as a facilitator and coordinator for joint activities or projects between the Service and federal, state and qualifying local government agencies.

Governmental Liaison may need legal advice from the Office of Chief Counsel on a joint activity or project at either the local or national level. The legal issues involved in the Governmental Liaison program include:

If the Service proposes to enter into either a joint activity or project with another governmental entity, Governmental Liaison will generally memorialize the agreement in a Memorandum of Understanding, Letter of Understanding or a contract. The Office of Chief Counsel will review these documents unless the local Governmental Liaison (GL) is using a template previously approved by the appropriate Associate Chief Counsel or Division Counsel Headquarters office.

Field Office Governmental Liaison. The Associate Area Counsels, Small Business/Self Employed (SB/SE) Division, serve as Chief Counsel's principal contact points for providing legal advice to field GL for routine matters. In general, there is one SB/SE attorney contact for each state’s GL, and each attorney will establish a working relationship with the Governmental Liaison and Disclosure (GLD) Area Manager.

The local GL, in coordination with the GLD Area Manager, determines when legal advice is needed on a joint activity or project. If necessary, the GL will notify the local Counsel contact. The local Counsel contact will give advice to the GL, provided that the activity or project does not have national implications, or, if advice is not needed from an Associate Chief Counsel or a Division Counsel Headquarters office.

Novel or significant issues arising in the Governmental Liaison program require coordination with the appropriate Associate Chief Counsel or Division Counsel Headquarters office. A Senior Counsel to the Associate Chief Counsel (Procedure & Administration) serves as the Counsel Governmental Liaison Coordinator for these matters. In addition to coordinating requests for legal advice sent from local Counsel to Associate Chief Counsel or Division Counsel Headquarters offices, the Counsel Governmental Liaison Coordinator serves as the primary liaison between the Office of Governmental Liaison and the Associate Chief Counsel and Division Counsel Headquarters offices.

The Counsel Governmental Liaison Coordinator's liaison responsibilities include:

Criminal Tax Matters. Agreements entered into between the Service’s Criminal Investigation function and other federal, state or local law enforcement agencies must be forwarded to the Office of Division Counsel/Associate Chief Counsel (Criminal Tax) for review and coordination with Office of Associate Chief Counsel (General Legal Services) and the Counsel Governmental Liaison Coordinator in Procedure and Administration.

Initial Coordination. If a joint activity or project has national implications, or requires advice from an Associate Chief Counsel or Division Counsel Headquarters office, the request for legal advice should be forwarded to the Counsel Governmental Liaison Coordinator, through the Technical Services Support Branch (TSS 4510) for assignment.

Associate Chief Counsel or Division Counsel Review. Generally, within ten calendar days of receipt of a request for advice from local Counsel on a Governmental Liaison matter forwarded by the Counsel Governmental Liaison Coordinator, the affected Associate Chief Counsel or Division Counsel Headquarters office will:

Associate Chief Counsel or Division Counsel Advice. Written advice generally will be submitted to local Counsel within 45 calendar days of receipt of the assignment. Copies of the written advice will be provided to the affected Associate Chief Counsel and Division Counsel Headquarters offices and the Counsel Governmental Liaison Coordinator. If the request involves a combination of issues, the respective Associate Chief Counsel or Division Counsel Headquarters office shall coordinate their response with the Counsel Governmental Liaison Coordinator. The Counsel Governmental Liaison Coordinator will provide the consolidated written response to local Counsel, and will provide a copy of the consolidated written response to the respective Associate Chief Counsel or Division Counsel Headquarters offices involved.

Local Counsel Legal Advice. Any written advice from local Counsel to the GL generally will be provided promptly after receipt of the advice from the Associate Chief Counsel or Division Counsel Headquarters office (or notification that advice will not be provided). Copies of any local Counsel advice will be provided promptly to the Counsel Governmental Liaison Coordinator.