Returns and return information are confidential and may not be accessed or disclosed except as authorized by Internal Revenue Code (IRC) 6103. This rule applies to all present and former IRS employees. Civil and criminal sanctions may be imposed upon intentional violators. Effective with respect to disclosures made after September 3, 1982, civil actions for damages are permitted against the government rather than against the employee.

See IRM 9.1.2, Authority for the delegated authority relating to IRM 9.3.1, Disclosures.

Instructions and guidelines relating to disclosure of information from tax returns and other IRS documents, including disclosure under the Freedom of Information Act and the Privacy Act, are published in IRM 11.3, Disclosure of Official Information. This section will only highlight some of the situations that are frequently encountered in Criminal Investigation (CI).

This IRM section is applicable to all Treasury and IRS employees who are authorized by IRC 6103(h) to disclose return information to federal officers and employees relating to their official tax administration duties or to accomplish properly any activity connected with such official duties.

The Director, Financial Crimes is responsible for maintaining and overseeing this IRM and ensuring compliance with current disclosure policies and procedures.

The Director, Financial Crimes will:

Business Units are responsible for establishing and documenting the program controls developed to oversee their program as well as ensuring employee compliance with all applicable elements of this IRM.

The following table lists the acronyms used and their definitions:

IRM 1.2.2.15.5, Delegation Order 25-5 (formerly DO-143, Rev. 6), Authority to Perform Certain Functions to Enforce 31 CFR 103 (Bank Secrecy Act Regulations).

IRM 1.10.3, Office of the Commissioner of Internal Revenue, Standards for Using Email.

IRM 5.1.5.15.3, Restitution-Based Assessments (RBA).

IRM 5.1.5.19.3, Court Ordered Restitution Payment Processing.

IRM 9.3.2, Publicity and Internal Communications.

IRM 9.4.2, Sources of Information.

IRM 9.5.2, Grand Jury Investigations.

IRM 9.5.3, Criminal Investigation Strategies.

IRM 9.11.3, Investigative Property.

IRM 10.2, Physical Security Program.

IRM 10.2.8, Incident Reporting.

IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

IRM 11.3, Disclosure of Official Information.

IRM 25.5.5, Summons for Taxpayer Records and Testimony.

When soliciting information during a tax investigation from a third party other than the preparer of the return, an SA may not show a taxpayer’s tax return to the third party. However, pertinent data (e.g., the nature and amount of income, deductions, expenses, etc.) may be extracted from the tax return and used in questioning third parties. This may be done to the extent that reliable or information necessary to the investigation could not be secured without making the disclosure.

Situations in which necessary information must be obtained from sources other than the taxpayer typically are found when:

In determining whether to make an investigative disclosure under IRC 6103(k)(6), be certain that the disclosure is consistent with the requirements of that section and the related regulation. (Treasury Regulation 301.6103(k)(6)-1).

The fact that information from the taxpayer’s investigative file is already public should not be the only factor for making investigative disclosures.

Questions concerning investigative disclosures should be brought to the attention of one’s Supervisory Special Agent (SSA) or the local Disclosure Manager.

If an SA finds it necessary or desirable to have an informant accompany him/her on an investigative contact or activity such as identifying a witness or taxpayer, pinpointing a location, introducing the agent to a witness or potential informant, or, in exceptional circumstances, attending a witness interview, the SA must exercise extreme care to prevent unauthorized IRC 6103 disclosure of returns or return information.

As a general rule, an informant should not be present while a SA is conducting a witness interview. There are, however, exceptional circumstances when a SA may have an informant accompany him/her on a witness interview (for example, when the informant’s presence during the interview will make a reluctant witness feel more at ease). An informant’s presence is permitted only when the witness requests the informant’s presence or the witness expressly consents to the informant’s presence. This request or consent must be documented by the SA in the memorandum of interview or other interview record.

When it appears that an IRS informant is knowledgeable concerning potential narcotics violations, CI personnel will encourage the informant to meet directly with Drug Enforcement Administration (DEA) or Federal Bureau of Investigation (FBI) personnel. If the informant declines, CI personnel will debrief the informant of the information relating to potential narcotics violations and will transmit such information to the Disclosure Office for transmission to the DEA, the FBI, or to the Assistant Attorney General, Criminal Division, Department of Justice (DOJ), in accordance with the disclosure laws and regulations. Contact the local Disclosure Office for advice concerning whether such a disclosure may be made under IRC 6103(i).

If Federal, state or local agencies inquire as to the reliability of an individual who is an informant, the Special Agent in Charge (SAC), with the permission of the informant, may tell the other agency the extent and value of the informant’s cooperation, consistent with disclosure policies. No information protected by IRC 6103 may be disclosed. The SA will advise the informant that any information submitted by him/her concerning violations not under IRS jurisdiction will be furnished to the appropriate enforcement agency in accordance with IRS disclosure procedures.

Whenever an IRS employee learns that an IRS confidential informant/confidential witness (CI/CW), in obtaining information for the IRS, has employed illegal techniques such as breaking and entering into another’s premises without a search warrant, the illegal seizure of papers or other property, or the illegal overhearing of conversations, the IRS employee will immediately notify the SAC. The SAC will determine the advisability of notifying the appropriate law enforcement authority using the information and criteria set forth in IRM 9.4.2, Sources of Information. The disclosure to the appropriate agency, will be in accordance with IRM 11.3, Disclosure of Official Information.

In certain circumstances, letters to third parties may be the most efficient means of obtaining documentary evidence in an investigation. This option may be particularly useful when a large number of persons, widely scattered geographically, need to be contacted.

If not judiciously used, however, such correspondence may result in unwarranted embarrassment to the taxpayer.

Information obtained by the IRS through the use of a summons is considered return information, other than taxpayer return information, within the meaning of IRC 6103(b), and is subject to the disclosure and inspection provisions of IRC 6103, IRC 7213, IRC 7213A, and IRC 7431. (See also IRM 25.5.5, Summons for Taxpayer Records and Testimony.)

Except as otherwise authorized, no officer or employee of the Treasury Department or any component thereof shall:

The mail cover request should be sufficiently detailed to establish the need for the mail cover. Disclosure of tax return information to the US Postal Service must be limited to the extent necessary to obtain the mail cover.

During the course of Organized Crime Drug Enforcement Task Forces (OCDETF), High Intensity Drug Trafficking Area (HIDTA), or other narcotics investigations, facts or information may surface concerning the commission of non-tax Federal criminal offenses. This information generally may be disclosed (pursuant to IRC 6103(i)(3)(A) and only to the extent such information pertains to Federal criminal violations), but specific procedures need to be followed (see IRM 9.3.1.9, Reporting Violations of Crimes Outside of the Jurisdiction of IRS).

During the course of a Strike Force investigation, facts or information may surface concerning the commission of non-tax Federal criminal offenses. This information generally may be disclosed (pursuant to IRC 6103(i)(3)(A) only to the extent such information pertains to Federal criminal violations) but specific procedures need to be followed (see IRM 9.3.1.9, Reporting Violations of Crimes Outside of the Jurisdiction of IRS).

Congress enacted IRC 4424, in 1974, which is intended to remove any constitutional problems regarding enforcement of the wagering taxes resulting from improper disclosure of wagering tax information. IRC 6103(o)(2) provides disclosure restrictions on taxes on wagering as per IRC 4424.

The SAC will meet with the United States (US) or Strike Force Attorney to discuss individual wagering tax investigations to determine if they are prosecutable under DOJ standards. Disclosure of information for this purpose is permissible under IRC 4424. The attorney for the government should be informed that any information gleaned from data subject to IRC 4424 must be used only for the administration of civil or criminal enforcement of the IRC, and that such information may not be used for intelligence or prosecutorial purposes such as the enforcement of gambling offenses set forth in Title 18 or any other non-tax administration purpose (see IRM 11.3.26, Disclosure of Official Information, Wagering Tax Information.).

If the US Attorney decides to prosecute a wagering tax defendant for a substantive non-tax gambling violation after a gambling tax investigation, they may need to prove that none of the information used at trial is tainted by the tax non-disclosure provisions. When this is not possible, the prosecution of non-tax violations may be precluded. To avoid this potential interference with non-tax gambling investigations and prosecutions, all information controlled by IRC 4424 (see IRM 11.3.26, Disclosure of Official Information, Wagering Tax Information), which is forwarded to the US Attorney, will have the following statement on the cover sheet of each report: THIS DOCUMENT CONTAINS WAGERING INFORMATION WHICH UNDER 26 USC 4424 AND 6103 MAY BE DISCLOSED ONLY FOR THE ADMINISTRATION AND CRIMINAL ENFORCEMENT OF THE INTERNAL REVENUE CODE. IT MAY NOT BE USED FOR INTELLIGENCE OR PROSECUTORIAL PURPOSES FOR GAMBLING OFFENSES SET FORTH IN TITLE 18, OR ANY OTHER PURPOSE.

On many occasions, IRS employees have an official need for certain returns or return information in the SA’s investigative file. Such employees include the SA’s SSA, another SA, a revenue agent, a revenue officer, etc. The key is whether the employee has a "need to know" in connection with their official tax administration duties. A written request is not required for these "need to know" disclosures, see IRC 6103(h)(1).

A written request will generally be required before tax information in the possession of the IRS will be disclosed to an employee of another component of the Department of the Treasury whose official duties require the information for tax administration purposes (see IRM 11.3.22, Disclosure of Official Information, Disclosure to Certain Federal Officers and Employees for Purposes of Tax Administration under IRC 6103(h)).

Approved Special Agent Reports (SaR) are referred to DOJ, Tax Division under the authority of IRC 6103(h)(2) and (3). A disclosure may be made to DOJ of relevant returns or return information pertaining to the taxpayer who is or may be a party to a tax administration proceeding or investigation, see IRC 6103(h)(2)(A). Returns and return information of third parties gathered in connection with an investigation of a taxpayer may be disclosed to DOJ if such information satisfies the "item" or "transactional relationship" test provided in IRC 6103(h)(2)(B) or (C).

The item test is met if an item on a third party’s return may relate to the resolution of an issue in the tax administration proceeding or investigation of the taxpayer.

The transaction test is met if the third party’s returns or return information may relate to a transaction between the taxpayer and the third party and the third party’s information pertaining to the transaction may affect the resolution of an issue in a proceeding or investigation involving tax administration.

SAs who are contacted by an attorney for the government and asked to provide returns or return information in connection with an investigation or prosecution which was not referred by the IRS should refer the requesting attorney to the Disclosure Manager.

Disclosure of returns and return information to the taxpayer’s representative will be made only in the following circumstances:

Grand jury proceedings are kept secret to:

Accordingly, while it is in session, the only persons who may be present in a grand jury proceeding are attorneys for the government, the witness under examination, a stenographer or operator of a recording device, and interpreters when needed. An indictment may be dismissed upon a showing that an unauthorized person was present during the proceedings. No person other than the jurors may be present while the grand jury is deliberating or voting (see Fed. R. Crim. P. 6(e) for exceptions and other matters pertaining to grand jury disclosures).

Federal Rule of Criminal Procedure 6(e), (referred to as Rule 6(e)) provides, generally, that matters occurring before the grand jury are secret. For convenience, "matters occurring before the grand jury" will be referred to as grand jury information. No obligation of secrecy may be imposed on any person except in accordance with this rule.

Disclosure of grand jury information may be made to those government personnel deemed necessary by an attorney for the government to assist in the performance of their duty to enforce federal criminal law. With the consent of the attorney for the government, agents of the IRS may:

If the court orders disclosure of matters occurring before the grand jury, the disclosure shall be made in such manner, at such time, and under such conditions as the court may direct.

Disclosure of matters occurring before the grand jury may also be made when so directed by a court preliminarily to or in connection with a judicial proceeding, but the court has held that IRS civil examinations are not preliminary to judicial proceedings within the meaning of Rule 6(e). In addition, the government must establish a "particularized need" to obtain an order.

At the end of the grand jury investigation, the SA will prepare a final report similar to the final report in an administrative investigation. The SA should prepare separate exhibit folders for documents governed by Rule 6(e) and clearly identify them as grand jury information. The SAC should give copies of the report to only those persons specifically on the Grand Jury Access List.

If a Rule 6(e) order cannot be obtained and the investigation has civil potential solely on the basis of non-grand jury information, the SA will consult with the attorney for the government for their concurrence that the information is non-grand jury information and can be disclosed. The SA will then confer with CT Counsel to determine whether IRS policy allows the information to be given to the appropriate civil operating division. If CT Counsel concurs, the SAC will transmit the non-grand jury information to the Territory Manager of the civil operating division by memorandum, but will neither refer to the grand jury investigation nor refer to or draw conclusions based on grand jury information.

If civil action is not to be pursued and the attorney for the government returns the records to CI for disposition, CI should document how the records are to be disposed of, secure the approval of the attorney for the government (original records of witnesses can generally be returned to the witnesses, if approval is received), and retain the record of disposition in the office files. Records which are to be retained should be stored in accordance with existing IRS guidelines.

The procedures for revealing tax information to the attorney for the government or others involved in conducting a grand jury investigation differ depending on whether the grand jury investigation or proceeding is for tax administration purposes or not.

Tax information obtained under specific provisions of IRC 6103 for use in a tax or a non-tax Federal grand jury investigation generally may be disclosed by the attorney for the government to Federal officers and employees personally and directly engaged in the investigation.

The provisions of IRC 6103 generally prohibit disclosure of tax information to state and local law enforcement personnel assisting the attorney for the government in such investigations. However, the following exceptions exist to this general rule.

State and local personnel can be considered Federal employees for disclosure purposes. Specific prerequisites must be met to be considered a Federal employee:

In the conduct of a tax grand jury investigation, the prosecuting Assistant United States Attorney (AUSA) may disclose tax information to state and local law enforcement personnel on a case-by-case basis under Treasury Regulation 301.6103(h)(2)-1(b)(1). The tax information disclosure by the prosecuting AUSA is permitted to the extent necessary to achieve investigative goals and so long as the purpose or activity cannot otherwise properly be accomplished without making such disclosure, dependent on the unique facts and circumstances of each investigation.

Factors which the AUSA should consider when making a determination whether or not to disclose tax information pursuant to Treas. Reg. 301.6103(h)(2)-1(b)(1) include:

The mere assignment of state and local law enforcement personnel to a tax grand jury investigation is generally not enough to authorize disclosure of returns and return information to the state and local law enforcement personnel.

The provisions of IRC 6103 restrict the access, use, and further disclosure of any tax information disclosed in these cases, and applies to all personnel who receive tax information from the attorney for the government. Tax information may not be used by state or local law enforcement personnel for non-federal charges.

Additionally, the Fed. R. Crim. Proc. 6(e), prohibits the disclosure of grand jury material or information, except as specifically authorized, and apply to state and local law enforcement personnel assisting the attorney for the government with the investigation. See IRM 9.5.2, Grand Jury Investigations.

IRC 6103(h)(4) allows disclosure of returns and return information to a US Probation Officer for the purposes of informing the court of any compliance or non-compliance by a taxpayer during such taxpayer’s probationary period under the following circumstances:

For the purpose of preparing the report contemplated by Fed. R. Crim. Proc. 32(c), the SA’s report may be disclosed to a US Probation Officer in instances where a taxpayer has pleaded guilty or nolo contendere, or has been found guilty of Federal tax law violations. Inspection of the prosecution recommendation report by the US Probation Officer, to the extent material and relevant, should be made at a convenient location such as the office of the US Attorney. Proper care should be exercised to provide adequate security of the report and the information contained therein to prevent unauthorized disclosure.

Occasionally, US Probation Officers will request tax information from the IRS as part of a pre-sentence investigation in a non-tax criminal matter. Disclosures may be made to US Probation Officers in these circumstances only as provided in IRC 6103(c). Treasury Regulation 301.6103(c)-1 provides the format that must be followed in any taxpayer authorization or waiver that is submitted for the purpose of allowing a US Probation Officer to receive tax information.

Following conviction for criminal tax violations, courts in some instances specify that probation of the sentence imposed is conditioned upon satisfactory settlement or payment of civil liability for taxes and penalties. The SAC will take whatever steps are necessary to initiate appropriate legal action in any instance where the taxpayer has failed to comply with the conditions of the probation or supervised release. IRC 6103(h)(4) permits the disclosure of information contained in IRS files to a US Probation Officer in a judicial proceeding pertaining to tax administration for the purpose of informing the court of any non-compliance with the terms of the taxpayer’s probation or supervised release.

In certain circumstances, the IRS collects Restitution-Based Assessments (RBA) payments even after the defendant’s probationary period has ended. (See IRM 5.1.5.15.3, Restitution-Based Assessments (RBA), for a discussion of limitations on collection of the RBA). In such circumstances, the IRS continues to coordinate with the DOJ FLU and the court clerk’s office after the probationary period is over, in order to ensure that the restitution debt is collected, and collected only once.

The court’s Judgment & Commitment Order specifies where the defendant must send restitution payments. If the Judgment & Commitment Order specifies that payments must be made to the office of the clerk of the district court in which the defendant was sentenced, then the court clerk’s office receiving the restitution payment processes and records the payment made by the defendant, then forwards the money to the IRS. See IRM 5.1.5.19.3, Court Ordered Restitution Payment Processing.

Often in conducting tax investigations, SA's discover evidence of crimes outside the jurisdiction of IRS. What can be revealed and the manner in which it can be revealed depends on:

The IRS's effort to cooperate with the various agencies investigating terrorist actions is led by CI. Criminal Investigation and Disclosure work in partnership to ensure that everything legally possible is done to assist in these investigations.

When performing their official duties, employees may come across information which could relate to terrorist activities. Law enforcement agents outside the IRS may ask an employee to provide information for a terrorism-related investigation. In either case, CI should be contacted immediately. During disclosure presentations, Disclosure Managers or Specialists will caution employees that they should not browse taxpayer information in order to locate information related to terrorism that might be shared.

Disclosure personnel will give expedited assistance or technical guidance, when sought, to CI personnel considering disclosures under IRC 6103(i)(3)(B)(i). Terrorism related disclosures under IRC 6103(i)(3)(B)(i) should be rare and supported by compelling facts since Congress enacted specific legislation in IRC § 6103(i)(3)(C) and IRC § 6103(i)(7) regarding IRS interaction with terrorism and national security investigations.

Delegation Order 11-2 contains delegations of authority pertaining to IRC 6103(i)(3)(C) and IRC 6103(i)(7). The following compares processing procedures under IRC 6103(i)(3)(C) and IRC 6103(i)(7) provisions to those of other IRC 6103(i) sections:

Other considerations may prohibit the disclosure of tax information for non-tax criminal purposes. This includes:

Return information (other than taxpayer return information) relating to the commission of non-tax Federal criminal offenses or violations of non-tax Federal criminal laws, which is obtained by a SA during the course of an official investigation, will be reported by memorandum to the SAC (see IRM 9.3.1.9.1.1, Return Information (Other Than Taxpayer Return Information) and the Non-Tax Violation) and may be disclosed pursuant to IRC 6103(i)(3)(A) by officials authorized under Delegation Order 11-2 (formerly Delegation Order 156 (Rev. 17)).

The SAC shall maintain liaison with local and state law enforcement officials to identify violations which warrant action by CI and to keep current in regard to enforcement problems in their office.

The SAC will meet with other agencies to set up direct lines of communication for overall cooperation aimed at enhancing the respective law enforcement efforts of both agencies, including all civil and criminal aspects of financial crimes. Information will be obtained at the local level on an investigation-by-investigation basis, only as authorized by IRC 6103.

The SAC will brief local Federal law enforcement officials on the disclosure provisions contained in the wagering law (IRC 4424); those implemented through the Tax Reform Act of 1976 (IRC 6103); and the implications of these provisions upon the IRS disclosure of information to other Federal agencies and the IRS procedures for informing other agencies of non-tax violations. The SAC will ensure that SA's follow the procedures set out in IRM 9.3.1.10.2, Liaison with Other Federal Agencies concerning instances of other Federal violations observed during an investigation.

The IRS is authorized by other Federal law enforcement agencies to receive certain information and reports from their investigative files. Access to information or reports received from other Federal investigative agencies should be limited to IRS personnel who require the information in the performance of their official duties.

Unless specifically provided for under IRC 6103 or other laws or regulations, reports of investigations or other information received from other Federal agencies will not be:

During inquiries conducted by CI involving information received from another law enforcement agency, there should be no disclosure to any person that their name was obtained from or that they are mentioned in any report or information obtained from that agency, unless specifically provided for under IRC 6103 or other laws or regulations.

Reports received from other Federal enforcement agencies shall be maintained in secure storage facilities (see IRM 10.2.8, Incident Reporting). Sufficient records shall be maintained to show the name and position of each individual who inspects such a report, the date of the inspection, and the purpose of the inspection. Such reports shall not be removed from CI custody and no copies of any such reports shall be made.

Any information or leads obtained from such reports shall be developed by independent investigation, and such reports shall not be used as exhibits or mentioned in final reports.

No action shall be taken which identifies informants or investigative techniques employed by other Federal agencies.

Such reports shall be returned upon request or when existing operating procedures require that such reports be returned to the agency involved. The report must be returned prior to submission of the SA’s final report.

Upon receipt of financial information from other Federal agencies involving a completed investigation, which contains possible tax related information, e.g., evidence of gross wagers received by a gambling operation reflecting a liability for wagering excise and income tax or evidence of income by an individual from embezzlement, bribery, extortion, or shylocking, an information item will be prepared. The information item will be evaluated for criminal potential. If criminal potential does not exist, the information item will be forwarded to the appropriate civil operating division provided that it does not contain grand jury information.

The Chief, CI; Director, Field Operations; or the SAC will provide a letter of notification to their employees who are detailed to other agencies. Exhibit 9.11.3–8 found in IRM 9.11.3, Investigative Property, is an example of such a letter.

The letter should address issues of access to tax returns and return information. Access to tax returns and return information is authorized for those official duties which require disclosure for tax administration purposes. Access for other matters is governed by the provisions of IRC 6103(i).

The letter must also address the use of IRS pocket commissions and enforcement badges. They may be used for official identification purposes, but the letter will clarify the advice IRS employees should give those contacted (see IRM 9.5.2, Grand Jury Investigations).

Employees who have a need to know the details will receive an information copy of the appointment letter.

An exception to the general rule is that no authorization is needed when testimony or production of records is requested by the attorney for the government in a tax administration investigation, e.g., testifying for the government in a criminal tax prosecution or Tax Court case. However, authorization is needed when testimony or records are sought by a party to the litigation other than the government (e.g., the defense in a criminal investigation, a petitioner in a US Tax Court case, the plaintiff in a Federal tort claims case against an IRS employee, or the plaintiff in a refund litigation case).

If the request to testify or produce information in a tax proceeding comes from someone other than the attorney for the government, contact CT Counsel immediately. Criminal Tax Counsel is responsible for preparing the authorization for approval and signature in this type of situation.

Subpoenas and requests for information and documents obtained during a grand jury investigation should be referred to the attorney for the government in order to comply with the requirements of Fed. R. Crim. P. 6(e).

Any request or demand for testimony or production of IRS information, along with any pertinent facts and/or background information, is to be immediately forwarded through the manager to the Disclosure Manager. Failure to do so in a timely manner may subject the employee and the IRS to sanctions such as contempt of court. This information may be transmitted by telephone or fax when there is not enough time for a formal transmittal and mailing.

The Disclosure Manager will prepare the authorization and clear it through Chief Counsel prior to its submission to the appropriate official for signature.

There may be instances when the limited disclosure of tax information, to the extent necessary to correct a misstatement of fact, may be warranted. When it is determined that such a correction is necessary for tax administration purposes, the Commissioner is authorized to make such disclosures, but only with the approval of the Joint Committee on Taxation on an investigation-by-investigation basis (see IRC 6103(k)(3)).

The IRS should seek authorization to disclose when:

Whenever field personnel become aware of any situation where a misstatement may warrant correction by the IRS through the disclosure of return information, they should contact their Disclosure Office for assistance. Particular attention should be paid to those situations involving abusive tax shelters.

Additional information may be found in IRM 11.3, Disclosure of Official Information.

The Office of TIGTA can have access to information covered under IRC 6103.

Criminal Investigation field offices should follow established protocol when responding to TIGTA auditors' requests for information on grand jury investigations.

When TIGTA makes a request involving a matter investigated by a grand jury, the CI SA handling or responsible for the case will review the case file and redact any grand jury information.

Information obtained prior to the grand jury referral and all information obtained during the investigation which does not constitute a matter occurring before the grand jury, will be furnished to TIGTA. The IRS takes the position that grand jury material is any matter occurring before the grand jury, i.e., testimony, information obtained pursuant to a subpoena, and/or any information that discloses the scope or direction of the investigation. Criminal Investigation will advise the Office of Audit if full disclosure cannot be made of all items in the file because certain items fall within the scope of Rule 6(e). Criminal Investigation will describe in general terms the nature of the items (e.g., a transcript of testimony).

If the CI SA has questions about any specific items, they should consult with CT Counsel about whether the information should be redacted. If the SA and CT Counsel cannot resolve the question as to whether specific information is grand jury material, CI may then consult with the attorney for the government who handled the criminal case.

On open investigations (not fully adjudicated), prior to providing any documents to TIGTA auditors, CI will consult the attorney for the government assigned to the investigation to ensure that the attorney for the government does not object to the information being released to TIGTA auditors. If the attorney for the government believes that the release of such information could damage the ongoing investigation, CI, TIGTA and the government attorney will determine whether an accommodation can be made.

If TIGTA believes that the items are not covered by Rule 6(e) and should be released, TIGTA will make a specific request to CI limited to the items important to completing the audit. Criminal Investigation will promptly reconsider releasing the items in the request and advise TIGTA of their decision after consulting with DOJ. If TIGTA and CI cannot agree, the final decision will be made by the attorney for the government.

All parties to the dispute will treat it as a priority and will provide an expedited review of the issues. They will attempt to resolve the dispute at the lowest possible level, seeking CT Counsel advice as soon as possible. If all attempts within the IRS fail to resolve the issue, the Division Counsel/Associate Chief Counsel (Criminal Tax) may, if unable to resolve the matter, refer the matter to the DOJ for final resolution.

IRC 6103(l)(4)(B) permits the disclosure of returns and return information to Department of the Treasury officers and employees for use in a personnel action or proceeding, or in preparation for such action or proceeding, to the extent necessary to advance or protect the government’s interests.

This provision permits the IRS to disclose returns and return information to OPM when such information is needed in a personnel action of any kind. The reclassification of position grade levels by OPM is an "administrative action" within the meaning of IRC 6103(l)(4)(B), and OPM’s desk audits are considered preparation for this action.

Disclosure to OPM under the provisions of IRC 6103(l)(4)(B) does not require a written request, but only officials with Delegation Order 11-2 authority may authorize such disclosures. Blanket disclosures of returns and return information to OPM should not be made. The need for confidentiality must be balanced against the need for specificity of information. See IRM 11.3.21, Disclosure of Official Information, Disclosure of Returns and Return Information for Tax Administration Purposes under IRC 6103(k), and IRM 11.3.22, Disclosure of Official Information, Disclosure to Certain Federal Officers and Employees for Purposes of Tax Administration under IRC 6103(h), for additional guidelines..

IRC 7213 provides criminal penalties of up to a $5,000 maximum fine, imprisonment for a maximum of 5 years, or both, together with the cost of prosecution and dismissal from employment for the willful unauthorized disclosure of a return or return information.

An unauthorized disclosure is made willfully when it is done voluntarily and intentionally with full knowledge that it is wrong.

IRC 7213A provides criminal penalties of a fine not to exceed $1000, imprisonment for a period of not more than one year, or both, together with the cost of prosecution and dismissal for the willful unlawful access or inspection of any return and return information.

Unauthorized access to return or return information is to be reported to the immediate CI supervisor. The CI supervisor will advise TIGTA of all intentional unauthorized accesses.

For a complete discussion of unauthorized accesses or disclosures of confidential tax information, see IRM 11.3.38.5, Reporting Suspected Willful Unauthorized Accesses or Disclosures.

Civil actions for damages are permitted against the Federal government rather than against the Federal employee.

IRC 7431 provides that where a Federal officer or employee knowingly or negligently discloses a return or return information in violation of the disclosure restrictions, the wronged party may bring a civil action for damages against the government.

Certain non-Federal employees may be sued for damages under IRC 7431, if they have violated the disclosure statutes.

No liability shall arise under IRC 7431 where the disclosure was the result of a good faith but erroneous interpretation of IRC 6103.

If employees are criminally charged with inspection or disclosure of a taxpayer's return or return information, the IRS is required to notify the taxpayer that their records were inspected or disclosed.

Any IRS official or employee who receives a complaint or summons in a civil suit containing allegations of unauthorized disclosure should immediately notify their supervisor and Chief Counsel.

All persons having access to transcripts of private conversations are reminded that the contents of intercepted communications may be disclosed solely within the course of their official duties and on a need-to-know basis. Any disclosure of the contents of intercepted messages, which is not pursuant to 18 USC 2517, may subject the offending party to a civil action for damages under 18 USC 2520, and the possibility of having to show cause why they should not be held in contempt under 18 USC 2518(8)(c).

Regulations under the Social Security Act authorize the Social Security Administration to disclose information to any officer or employee of the Department of the Treasury lawfully charged with the administration of Titles II, VIII, or IX of the Social Security Act, the Federal Insurance Contributions Act, the Self-Employment Act, the Federal Unemployment Tax Act, or any Federal income tax law for the purpose of such administration only. The regulations expressly forbid further disclosure of information thus obtained, or its use for any purpose other than administration of the employment and income tax laws.

If an attorney for the government requires returns or return information in the possession of the Social Security Administration, they should submit a written request to the Chief, Communications & Liaison requesting authorization for Social Security Administration to release the information (see IRM 11.3.22, Disclosure of Official Information, Disclosure to Certain Federal Officers and Employees for Purposes of Tax Administration under IRC 6103(h)).