Disclosure supports the IRS commitment to openness in government by providing timely access to tax or other IRS records in accordance with applicable IRS, Privacy, and Freedom of Information laws. To support this commitment Disclosure processes requests for IRS records.

This IRM provides information to disclosure managers (DM) and caseworkers on inventory management and casework processing that should be followed in the performance of their duties.

The following items govern the authority pertaining to case work processed by the Disclosure office:

This IRM is used by Disclosure employees identified by the position descriptions disclosure manager (DM), tax law specialist (TLS), disclosure analyst (DA), senior disclosure specialist (SDS), disclosure specialist (DS), disclosure assistant (DA), and anyone who processes casework related to IRC 6103, the Freedom of Information Act (FOIA), the Privacy Act (PA) and non-tax subpoenas in the Disclosure Program.

The director, GLDS is responsible for executive oversight and direction of Disclosure programs.

The associate director (AD), Disclosure is responsible for the oversight and management of Disclosure policy, program operations, case processing, project management and program development.

The area manager, (AM) Disclosure East and West are responsible for the oversight and management of the field disclosure offices and managers. See IRM 11.3.38, Role and Responsibilities of Disclosure Managers, for additional information on the responsibilities of AMs.

The supervisor, Headquarters (HQ) Disclosure Policy and Program Operations (PPO), is responsible for day-to-day oversight and supervision over senior disclosure analysts who develop and implement disclosure policy, projects, guidance and awareness products.

The DMs, Disclosure Area Operations are responsible for the day-to-day oversight of case and program work of the field disclosure offices, including front-line supervision of Disclosure employees identified by the position descriptions of TLS, DA, SDS, DS and DA.

Disclosure employees identified by the position descriptions of TLS, DA, SDS, DS and DA are responsible for balancing disclosure program assignments as well as casework inventory and providing timely responses to assigned casework following relevant laws, authorities and guidance.

Disclosure inventory management and case processing is facilitated within FOIAXpress (FX), which is monitored and maintained by the GLDS Data Services office. FX allows management to validate program compliance through generating reports and requiring inventory to be processed under IRC 6103 statutory authority.

Disclosure program oversight also includes participation in operational and quality reviews. The Disclosure Office uses the Embedded Quality Review System (EQRS) to perform quality review on Disclosure specific casework.

See Exhibit 11.3.41-1, Terms/Definitions/Acronyms, for a listing of commonly used terms, definitions and acronyms used throughout this IRM section.

The following items are some related resources for disclosure casework and inventory management.

A focus on timely actions will reduce requester burden. Managing time effectively requires awareness of how much time is needed and available to work both business priority and routine cases while meeting mandated statutory response time frames.

Using an organized approach to all activities is the key to managing your time effectively. Every task should be identified, prioritized, and scheduled as far in advance as possible taking into consideration next steps, deadlines, due dates, work schedule, balancing daily activities and should allow for flexibility to manage changing priorities.

A disclosure employee will be responsible for working many priority tasks. It helps to develop a plan of action in priority order you have established and maintain your focus throughout the day, week and month. However, flexibility is important, and reassessment of priority items can help with effective time management.

Disclosure caseworkers must effectively manage time on casework and on Disclosure programs. All Disclosure employees will record time on a daily basis to cover their full tour of duty in the Disclosure electronic inventory management system.

Employee time is input by employee name and current position in three categories:

For additional information on time tracking, review the Time Reporting Guidelines found on the Disclosure SharePoint site.

Code, Authority and Procedure (CAP) is one of the fundamental concepts that must be used by disclosure employees to ensure timely and complete responses to disclosure case work.

Code: For each case worked it is vital for the disclosure employee to first identify what Code section(s) allow for the disclosure of information, if any.

Authority: After determining the relevant code section, the disclosure employee must utilize the appropriate delegation order to confirm who is authorized to make the disclosure.

Procedure: Following all relevant procedures found in IRMs and other approved resources is the final step to ensure case work is completed accurately.

See IRM 11.3.41.1.2, Authority, for more information.

Conduct timely case documentation – Use the inventory management system documentation features to record actions and decisions taken on cases. It is extremely important that casework documentation be clear, accurate, concise, complete, and timely. Record entries the day the action occurs or as soon as practical thereafter. Upload records to the case management system associated with the applicable case; do not maintain separately unless extenuating circumstances exist which should be documented in the case management system. Also, the caseworker should notate a plan of action or next steps in case documentation. See IRM 11.3.41.3.6, Case Documentation.

The Disclosure employee must keep their inventory current, review inventory reports at least weekly and document actions taken, actions needed and estimated time for closure. Effective inventory and workload management is paramount and should include the use of a calendar or task reminders in the inventory management system, to schedule initial, follow up and closing case actions. Schedule follow up actions commensurate with expected next steps and within the timeframes to resolve the inventory in accordance with established timeframes for resolution/case actions. Establish deadlines/agreed-upon response dates with internal and external customers.

Disclosure casework is processed through an electronic inventory management system designed to help the IRS comply with legal requirements for processing requests for information. The system accommodates all Disclosure case type processing, and allows for electronic processing of images, creation of pattern correspondence, use of redaction tools, facilitation of managerial and secondary review and access to fee/payment tools. The inventory management system also permits daily time tracking and generation of reports for workplan monitoring.

Disclosure casework is received through a central repository called the GLDS Support Services (GSS). The GSS receives the request and creates a corresponding case in the inventory system. Disclosure casework is managed as a "corporate asset," meaning any case type, from any geographic location can be assigned out to any Disclosure employee across the nation.

Disclosure employees must follow protocol to elevate issues or case processing items. It is a Disclosure caseworker’s responsibility to research the CAP to resolve issues or case processing items. Should the caseworker not be able to reach a decision on next steps, the caseworker should leverage their DM and DA. If discussion with the DM and DA does not result in resolution, the issue should be discussed with the area technical advisor (TA) and area manager. If still unresolved then the DM will collaborate with the appropriate PPO analyst.

Disclosure caseworkers processing requests for files assigned to an IRS employee of another business unit (BU), to the extent possible, should work directly with that employee. If the Disclosure caseworker cannot get resolution through their contact with the IRS employee, the caseworker should follow the protocol in (1) to elevate the issue to the DM. The DM should consider contact with the IRS employee’s manager and, as needed or as the acceleration process continues, involve the area TA or area managers.

Internal items should be vetted within Disclosure, including coordination with the senior disclosure analyst (SDA) in PPO, before going external following acceleration procedures cited above.

There may be times when Disclosure caseworkers, especially related to the TLS case work, need to obtain legal guidance from Counsel Procedure and Administration (P&A); in those instances, the caseworker and their manager should consult with the Senior FOIA policy analyst prior to direct reach-out to Counsel.

Disclosure caseworkers are not to contact IRS executives directly. In instances where IRS executives are implicated in request(s), caseworkers should be consulting with the assigned FOIA Functional Coordinator (FFC) within the appropriate business unit and/or the DM and DA, as appropriate, to determine next steps.

The Disclosure Issue Referral process should be used for any new and/or updated procedures or technical issues not currently available in an IRM, posted on Disclosure SharePoint, or in Interim Guidance provided by management. This is the approved process that should be used to elevate this type of issue to a PPO staff member for consideration. If this type of suggestion is submitted to any Employee Suggestion Box, it will be resolved from that platform recommending the use of the Disclosure Referral.

Most disclosure casework is sent to the GSS for receipt and control purposes. Receipt and control of requests for information includes:

If a disclosure employee receives correspondence locally, they should take the following actions:

The first step in Disclosure casework processing requires the assigned Disclosure caseworker to analyze the incoming request to determine if it contains all essential elements. This analysis may include determining if the proper Code (i.e., IRC 6103, FOIA) is cited, confirming that the requested records are within the jurisdiction of the IRS, and validating access and authentication requirements. Each case type may have other specific initial analysis steps. If initial analysis shows that a request is missing any required elements, the caseworker should make sufficient effort to contact the requester and ask for the missing elements. Generally, making two attempts to contact the requester would show sufficient effort, DMs can adjust this on a case-by-case basis.

The assigned Disclosure caseworker must also review the incoming request to determine if it has been properly entered within the inventory management system. If not, the Disclosure caseworker must take corrective actions within the system to correct the data. The following elements should be considered when determining if the request is correctly entered into the system:

The caseworker must also confirm that any other required fields within the inventory management system are reviewed and correct. The subject category must be updated to properly identify the types of records being requested.

The backlog and work stoppage categories must also be entered, with the relevant category below, to highlight potential complexities that may affect timeliness. Work stoppage categories are applicable when all actions by Disclosure caseworkers have been exhausted and there are delays outside of Disclosure’s control.

Some records can be provided using an established access procedure worked by another function at the IRS. These routine agency procedures include, but are not limited to, the use of a Form 4506, Request for Copy of Tax Return; Form 4506-A, Request for Public Inspection or Copy of Exempt or Political Organization IRS Form; Form 4506-F, Request for Copy of Fraudulent Tax Return; or Form 4506-T, Request for Transcript of Tax Return, sent to Return and Income Verification Services (RAIVS) for processing. Not all case types allow for a Routine Agency Procedure response, review the specific case type processing chapter in this section.

Initial analysis also includes researching the inventory management system to identify any duplicate requests. If the request is a true duplicate (that is, the request is identical in every aspect), take appropriate action to close the case following inventory management system procedures. No response letter is necessary for a true duplicate request. If the request is not a true duplicate, but seeks the same information as another request, contact the caseworker(s) controlling the other case(s) to determine whether to consolidate the request(s) to eliminate repetitive work and to decide which office will process the request. Offices other than the office that will process the case will close their case(s) as duplicates.

If the Disclosure caseworker identifies that the assigned case contains more than one request in the incoming correspondence, the caseworker will process the first request, then they will contact the GSS through their manager to request the other request(s) be entered as separate cases.

If correspondence has been entered into the inventory management system that involves an issue not worked by Disclosure, take appropriate action to close the case in the system. Enter a case note explaining that the correspondence is not a disclosure work process, then print the correspondence locally and send it to the appropriate BU.

Third party requests seeking tax records protected by IRC 6103 must include a valid authorization document (i.e., Form 2848, Power of Attorney and Declaration of Representative, Form 8821, Tax Information Authorization). If the request does not contain a valid authorization, caseworkers should contact the requester to obtain a valid authorization document.

During the course of reviewing an incoming request, the translation of non-English language may be required. See IRM 11.3.21.12(3), Internet Research, for additional guidance on available translation services.

After determining that the request is valid, the second step in Disclosure casework processing is determining the scope of the request and the manner in which to conduct a search for responsive records.

Disclosure caseworkers must research appropriate databases to determine if the requested record exists and/or is in the control of the IRS. If the request is for tax information, the caseworker will conduct a search of the Master File (MF) to identify the taxpayer’s account(s) for the tax period(s) requested and order the necessary returns and return information. The Disclosure caseworker is responsible for ensuring that all requested case files contain complete written audit trails including, but not limited to, information on communications with requesters and the extent and results of search efforts.

If there are indicators of identity theft or a fraudulent tax return on the taxpayer’s account, the Disclosure caseworker should discuss this matter with their manager and document their findings in the inventory management system. See IRM 11.3.41.3.10.1, ID Theft Considerations, for additional information.

Caseworkers must also follow procedures to retrieve records and provide the most expeditious response possible to the requester. These search procedures may include, but are not limited to, initial special searches, direct contact with Federal Records Centers (FRCs), pulling records from an IRS database, or reaching out to the IRS employee who owns the record.

Disclosure personnel will request responsive documents from the FRC using Special Search procedures. Caseworkers will prepare an accurate Form 2275, Records Request, Charge and Recharge, when ordering returns or administrative files. Form 2275 should include the mailing address of the GSS as well as the phone numbers of the caseworker and DM. Caseworkers will use the Integrated Automation Technologies (IAT) Fill Forms Tool, when completing the Form 2275. The IAT Fill Form tool automates entries of several fields on the Form 2275 using IDRS account information. Step by Step instructions for using Form 2275 in IAT can be found in the Record Retrieval Resources (RRR). Instructions to gain access to IAT can be found in the Account Research Tools (ART) on SharePoint. Fax Form 2275 to the proper Campus Special Search Unit or FRC. If no reply is received within 14 business days, the caseworker will notify their DM who should follow up with the appropriate official at the applicable site. If the DM is unable to resolve the problem, they should contact the Disclosure PPO BU Liaison for Wage & Investment (W&I) for assistance. Special Search and FRC site information is available on the Disclosure SharePoint page.

To ensure responsive records are properly associated to the correct case in the inventory management system, below are a few reminders for preparing a Form 2275:

To request administrative, program, and policy records, specifically certain retired Collection files, such as retired Offer in Compromise (OIC), Taxpayer Delinquent Account (TDA) and others from the FRC, a caseworker will complete an Optional Form 11, also known as OF-11. The OF-11 can be found on the Disclosure SharePoint Site>RRR> Collection. Below are some reminders when completing an OF-11:

Files or boxes that are temporarily withdrawn from an FRC using a OF-11, must be returned within 14 days for refiling. Below are some reminders when returning files to the FRC, previously requested on an OF-11:

Any responsive records identified and received must be imported into the specific assigned case. The caseworker may import the records locally, or may send them to GSS to be imported, whichever is most effective for their case. If the caseworker identifies records that have been imported into the case that are not responsive or not related to the request, consult with the DM to ensure the records are removed from the case. If the records appear to belong to a previous or currently assigned case, the caseworker should contact the employee who worked, or is working the case, with a CC to the manager, and let them know the records are in the inventory management system and they should associate them with the appropriate case.

Once the responsive records have been retrieved, the next step in case processing requires the Disclosure caseworker to work with the IRS employee who has ownership of the records to review the material and determine what should be released or what should be withheld in full or in part. The determination to grant or deny access to a specific record is made for each request on a case-by-case basis. Information being withheld must be approved by the authorizing official (i.e., information withheld under IRC 6103 requires manager approval per Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents).

Disclosure caseworkers are responsible for ensuring the documents are responsive to the request. Caseworkers will review documents provided by IRS functions to ensure they have received all responsive records and to separate and remove any non-responsive records. The Disclosure caseworker will also review all releases of documents to ensure that only covered documents and information are released in response to the request.

If there are periods with open collection, examination, CI or other compliance activity, the Disclosure Office will obtain clearances from the applicable functions before releasing any information pertaining to those periods.

Consider the following when obtaining clearances:

The following information may need to be edited:

Disclosure receives delegated authority to determine what documents should be released or withheld. Caseworkers should consult compliance employees, when necessary, to help decide what records are releasable. However, do not rely solely on the guidance given by a non-Disclosure employee when making a determination. Disclosure employees must confirm that all statutory requirements are addressed, and cases are processed correctly.

If a case includes responsive records that are privileged, only the trial attorney has the authority to invoke or waive that privilege. The caseworker should consult with that person and get their decision.

Copies of responsive records made in connection with disclosure casework must be as legible as possible. When copies are illegible because the originals are poor, the copy must be stamped with the notation "best copy available."

The burden of proof in defending withholding rests with the Government. Therefore, copies of documents which may ultimately be submitted to a court for in camera inspection must be legible.

During the course of reviewing responsive records, the translation of non-English language may be required. See IRM 11.3.21.12(3), Internet Research, for additional guidance on available translation services.

The final response letter issued to the requester is the final action to complete a request. Interim responses must be issued to the requester throughout case processing, as applicable. The final or interim response letters must contain specific items of information such as the request receipt date, must explain the reason for withholding any information denied in full or in part and must address all items requested.

All response letters should be created using approved pattern language. Any deviations from approved language must be reviewed and approved by the DM and the DM must document the approval of the deviation in the case history notes. Combining multiple approved pattern letter paragraphs does not require managerial approval. The caseworker should give attention to detail and thoroughly review all outgoing correspondence to make sure it is professional and technically accurate. DM case reviews should also ensure response letters are properly completed.

Interim responses should be issued to requesters when it is appropriate. DOJ OIP has provided guidance regarding interim responses during the processing of a FOIA request, and this same guidance should be considered for all Disclosure case processes. When working a request that involves a voluminous amount of records or which involves searches in multiple places, when feasible, the Disclosure employee should provide an interim response rather than waiting until all records are located and/or processed. Any exceptions made not to engage in interim responses, when records are clearly available, should be reflected and supported in case notes.

A case should not be closed unless all responsive records were retrieved and reviewed, or until all search efforts to retrieve the responsive records have been exhausted.

Case files and history notes must contain sufficient information to permit reviewers to determine precisely what was and/or was not released, and the underlying reasons. In many cases, the response letter itself may be adequate to determine the extent of records released. However, the case notes must be detailed enough to support all relevant activities, actions, and/or research used to make a determination in sufficient detail for others to understand.

The electronic file must contain copies of the signed and dated response letter, edited and/or withheld records, any index that may have been prepared, and any other records that are necessary to document the processing of the request. See IRM 11.3.41.2.4.1(1), Electronic Inventory Case Organization, for additional documentation that should be included in the electronic file.

When appropriate for the case type, the caseworker must prepare the record of accounting. Document the case history to show accountings were made. Each case type discussed later in this IRM will identify specific accounting requirements.

Before final closing the caseworker and/or manager should look over the case and make sure all actions were timely and accurately documented. The case should reflect the time spent on all case activities and should adequately describe all relevant actions taken. See IRM 11.3.41.3.6, Case Documentation, for additional information.

When appropriate, responsive records should be mailed locally, through printing or electronic methods, then sent to the assigned Disclosure employee for closing. Follow procedures established by the DM. As an alternative, cases could be forwarded to the GSS for printing and closing. If the case is due the same day it is ready for closure, do not send the case to GSS, respond and close the case locally. An electronic delivery may be used if the request was received via the Public Access Link (PAL).

When sending the case for closure, enter a case note with clear instructions to close the case in the way best suited to the efficiency of case closure.

When sending the case for closure ONLY, below are a few reminders:

When sending a case for printing and mailing, below are a few reminders:

Case notes in the inventory management system should clearly define actions taken including: initial analysis steps, identification of records requested, IDRS research completed, location of records and BU who owns the records, name of BU employee issued a search memo etc. Search memos need to clearly define due dates and what is expected (records in a readable format, preferably electronic, user ready condition, impairment recommendations if applicable, method for delivery of records, use of a transmittal form). A history entry should be made to refer to an action even though a form or document relative to the action is in the case file.

Disclosure caseworkers are responsible for ensuring that their case note documentation is contemporaneous, professional, accurate, and provides a clear description of all actions taken on a case, including next steps, and estimated dates for next steps and for completed resolution. Case notes should include planned activity in the event that the caseworker is out of office or if it is necessary for another caseworker to work on the case or determine the current status. Case notes should be factual and objective.

Case note documentation must be:

Case note entries in the inventory management system should document all actions taken on a request from initial analysis through research, review and edit and final response. These actions include but are not limited to:

Case timeliness expectations are necessary to promote effective and timely Disclosure case processing. For all case types, Disclosure personnel should respond within 24 hours to customer communication. Review the different case type sections in this IRM for additional case timeliness considerations. Also see Exhibit 11.3.41-15, Case Type Timeliness.

Due to the nature of a case, expedited processing timeframes may be needed. Cases should be reviewed as early as possible to identify requests requiring expedited processing. The timeframes discussed in IRM Exhibit 11.3.41-15, are the maximum allowed for taking case actions. Certain cases may involve issues that require the immediate attention of the manager and should therefore be worked more expeditiously.

Other situations may warrant extended timeframes that should be discussed with and approved by the DM and documented in the case file.

Overview: This subsection contains information about commonly requested tax administrative files. This is not an inclusive listing. Always research each request on a case-by-case basis to determine the appropriate administrative file being requested.

IRC 6103(b) defines a tax return as “any tax or information return, declaration of estimated tax, or claim for refund required by, or provided for or permitted under, the provisions of this title which is filed with the Secretary by, on behalf of, or with respect to any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to, or part of, the return so filed.”
Return information “includes such things as a taxpayer’s identity, the nature, source, or amount of their income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer’s return was, is being, or will be examined or subject to other investigation or processing, or any other data, received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return or with respect to the determination of the existence, or possible existence, of liability (or the amount thereof) of any person under this title for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense.”

Overview: Non-Tax IRS administration records are those not retrievable by a unique identifier such as an SSN or EIN.

Overview: This subsection provides guidance on other case processing considerations.

The e-Trak system establishes an internal process for assembling, reviewing and closing correspondence packages. These procedures apply to all direct reports to the CPO, PGLD, which will impact both internal and external customers, and comply with the IRS Correspondence Manual.

All GLDS cases that are processed via the e-Trak system are representative of the Commissioner’s direct response and accountability; therefore, these cases are held to a priority standard. The e-Trak system was selected to assist the business unit with tracking and monitoring internal documents that require a response with the use of Step Activity.

The Associate Director of Disclosure has given the directive to categorize e-Trak cases with the same priority and handling of FOIA cases. If an e-Trak case is not closed within the due date provided by the Executive Secretariat Correspondence Office (ESCO), a progress report should be submitted to indicate the projected response date and any barriers to closure.

The e-Trak module provides users with the ability to timely and effectively manage responses to issues raised by taxpayers, IRS employees, Congress, Treasury, The White House, Government Accountability Office (GAO), Congressional offices, Trade Associations, State and Federal Governments, Referrals from Governmental Liaisons, Treasury Legislative Affairs, Treasury Executive Secretariat and Treasury Inspector General for Tax Administration (TIGTA).

An authorization for disclosure of returns and return information to a designee that is not for the purpose of assisting in the resolution of a federal tax matter must be on a separate written document pertaining solely to the authorized disclosure. For example, a statement contained in a loan application authorizing the loan company to obtain return information would not be sufficient. This type of consent is commonly referred to as a “general purpose consent.”

A written authorization for disclosure under IRC 6103(c) must contain the following items:

The date an authorization is received by the IRS should be stamped or otherwise noted on the letter. This is important since 26 CFR 301.6103(c) - 1(b) provides that returns and return information cannot be disclosed unless a request is received within 120 days following the date the authorization was signed and dated by the taxpayer. The 120-day requirement does not apply where taxpayers request information or assistance relating to their tax matters. See 26 CFR 301.6103(c)-1(c).

The taxpayer may always authorize disclosure of their return but may not compel disclosure of return information. If an official authorized in accordance with Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents, determines that disclosure of return information will seriously impair federal tax administration, the IRS must withhold disclosure of the return information.

Under IRC 6103(c), if the designee has authorization to receive all tax information for a particular year, then non-filing information for the year in question is covered and income documents for that year (including an Information Returns Master File (IRMF) transcript) may be disclosed regardless of whether or not a Form 1040 series return was filed.

IRC 6103(c) and its regulation do not authorize implied consents. On occasion, Disclosure caseworkers may receive a request that is signed by both spouses. The presence of both spouses’ signatures does not establish an implied consent by the requesters to receive each other’s tax information. Disclosure employees must obtain an IRC 6103(c) consent prior to discussing or providing tax information to these individuals. For additional information on implied consents see IRM 11.3.41.3.10.4, Implied Consent.

Send IRC 6103(c) requests for returns and transcripts to RAIVS for processing.

When processing requests made pursuant to IRC 6103(c), initial analysis and ordering records must be completed at the earliest opportunity but no later than 10 business days of case assignment. Plan and schedule timely actions to order and review records and move case toward closure within 30 business days of receipt. If a request made pursuant to IRC 6103(c) cannot be closed within 30 business days, an interim response to include an anticipated final response date is required every 30 business days until the case is closed.

In accordance with IRS Policy Statement 11-99, officers and employees of government agencies (federal, state, and local) have no right of access to confidential tax returns or return information that is not explicitly defined in IRC 6103. These officials, in connection with their duties may not act as a taxpayer’s representative, such as on Form 2848,Power of Attorney and Declaration of Representative, or designee on Form 8821 , Tax Information Authorization, to request tax records including tax transcripts or IRS notices sent to an individual or business taxpayer, to administer non-tax government programs otherwise not codified within IRC 6103(l). See Policy Statement 11-99 found in IRM 1.2.1.11.14 for additional guidance.

IRC 6103(d)(1) permits the disclosure of returns and return information with respect to taxes imposed to any state agency, body or commission, or its legal representative charged under the laws of the state with the responsibility for administration of any state tax law. Disclosure may be made only in response to a written request by the head of the agency, body or commission only for the purpose of, and to the extent necessary in, the administration of such tax laws. Disclosure of federal tax returns or return information must be denied if it will identify a confidential informant or seriously impair a civil or criminal tax investigation.

An authorized officer or employee of a state tax agency may inspect or receive federal returns or return information of specifically identified taxpayers if:

A proper request is one directed to the appropriate IRS official designated in the basic agreement or the implementing or other agreement that includes:

A Disclosure caseworker receiving a request from a state agency representative to inspect federal tax returns or obtain return information, must confirm the identity of the individual, and ensure that the above requirements are met. The request from the state agency must also provide sufficient information to determine the agency’s "need and use" of the federal tax information (returns and return information). See IRM 11.3.32.2, Need and Use, for additional information.

Disclosure caseworkers should follow official policy for receipt and transmission of tax information. The means for transmitting federal tax returns and return information may vary according to the sensitivity of the material involved. Refer to the Transmission and Email section of IRM 10.5.1, Privacy Policy. In the event alternative transmission methods are considered, ensure they are commensurate with, and adhere to, established IRM policy and/or other approved IRS guidance regarding secure transmission (i.e., Publication 1075, Tax Information Security Guidelines for Federal, State and Local Agencies).

Form 8796-A, Request for Returns/Information (Federal/State Tax Exchange Program - State and Local Government Use Only), is used by employees of state tax agencies to request federal tax returns and/or return information in accordance with an approved basic agreement. Use of this form is encouraged but not mandatory. When Form 8796-A, is used, section C is signed by officials who are authorized to make requests and/or release information under the terms of the basic and implementing agreements. Requests from state tax agencies that only have a basic agreement must be signed by the head of the agency.

Every effort will be made to eliminate disclosure of unnecessary information to state tax agencies. Requests for copies of federal tax returns or return information are to be carefully reviewed to determine what specific information is needed and whether a copy of the entire return should be provided or if a computer transcript or partial transcript is more appropriate. Information in transcripts or other IRS tax files should be reviewed and any tax information for tax years outside of what is requested should be redacted. See IRM 11.3.41.3.4, Review and Edit, for other information which may need to be redacted.

State tax agencies can participate in the Transcript Delivery System (TDS) that allows approved state employees to order certain IRS transcript products on-line. All regular rules regarding IRC 6103(d) disclosures apply, including need and use monitoring and accounting for disclosures. The transcripts contain information that would never be subject to an impairment call to withhold disclosure to the state.

Accountings for disclosures of returns or return information must be made in accordance with IRM 11.3.37, Recordkeeping and Accounting for Disclosures. Accounting for disclosures made by Disclosure employees pursuant to IRC 6103(d) are done by completing a Narrative Record of Accounting. See IRM 11.3.41.5.8 , Narrative Record of Accounting.

A notation must be placed in the electronic inventory management system’s history notes indicating the completion of the accounting for disclosures.

DM’s will ensure that state tax agency ad hoc requests for federal tax returns or return information are processed consistent with IRC 6103(d)(1) requirements. These requests are received by GSS, input into the Disclosure automated inventory management database and electronically assigned to the field Disclosure office.

Requests from IRS compliance employees seeking information from state tax agencies are not controlled as IRC 6103(d)(1) requests by the Disclosure office. Employees should complete Form 8796, Request for Return/Information (Federal/State Tax Exchange Program - IRS Use Only), sections A, B and C. An authorized IRS representative must sign the form (section C, box 3) before the state tax agency can process the request. Disclosure maintains a list of authorized IRS employees the state tax agency recognizes. See IRM 11.3.41.5.5, Two-way Memorandum Between the IRS and State Tax Agencies.

IRS employees should not use Form 8796 when seeking information from sources other than state tax agencies. IRS employees seeking information from non-tax agencies must follow their business unit’s procedures for requesting information.

When processing requests made pursuant to IRC 6103(d), initial analysis and ordering records must be completed at the earliest opportunity but no later than 10 business days of case assignment. Plan and schedule timely actions to order and review records and move case toward closure within 30 business days of receipt. If a request is made pursuant to IRC 6103(d) cannot be closed within 30 business days, an interim response or status update to include an anticipated final response date is required every 30 business days until the case is closed.

Secure Data Transfer (SDT) allows Disclosure employees to securely transmit returns and return information to state and local stakeholders under IRC 6103(d). An SDT request is identified by the letters “SDT” in the description of the field in the inventory management system.

The state agency will input the incoming SDT naming convention on the Form 8796-A, Request for Return/Information (Federal/State Tax Exchange Program - State and Local Government Use Only). If the incoming SDT naming convention is not provided, or is not legible, contact the requesting agency official. The outgoing SDT naming convention is a re-configuration of the incoming SDT naming convention. If the outgoing SDT file isn’t named correctly it will not transmit. The naming convention is composed of 5 parts that add up to 23 characters. Example: SS###F8796AP***MMDDYYYY

Process your request normally following all steps for initial analysis, search, review, and edit. The SDT process will be used in preparing and sending your final response. The outgoing SDT response file must contain all responsive records and correspondence.

The caseworker will export the final response letter, incoming Form 8796-A and sealed responsive records to the local SDT folder on their desktop computer, pertaining to the caseworker’s office.

The final step in SDT transmission is to copy the final responsive document from the local SDT folder into the relevant Disclosure office’s folder on the SDT server. This is a copy and paste process so it may take some time depending on the size of the file.

About an hour after placing the file on the SDT server the caseworker should confirm the file was successfully transmitted. Review the "reject" folder in the Disclosure office’s SDT folder. If there is nothing in this folder then the information was successfully transmitted. If there is a file in this folder then the caseworker must delete the file from the reject folder and resubmit it following the steps in (4) and (5). The caseworker must check again in about an hour to make sure the information was successfully transmitted. Once transmission is successful the case can be closed in the inventory management system.

Do not place the SDT response file into the inventory management system. All components of the SDT response file should already be in the assigned case in the inventory system. However, the caseworker should retain the SDT response file for 30 days. There have been a few instances when a successfully transmitted SDT file was unable to be opened by the state agency. After 30 days, delete the SDT response file from the local SDT folder.

Disclosure of federal tax returns and return information on a continuing basis are carefully and thoroughly screened and evaluated to ensure that the tolerances and criteria established by written agreement are observed.

Disclosure managers must have a written document in place describing the procedures, tolerances, and criteria to be used by IRS personnel when releasing information to state tax agencies.

When the DM has federal tax returns and/or return information, which will not be transmitted to the state tax agency under other processes, but which may be evidence of any inadvertent or intentional understatement of any state tax, the DM shall contact the agency liaison official and, without disclosing identifying information, describe the federal tax returns and/or return information in sufficient detail to ascertain the agency’s need and potential use for the federal tax returns and/or return information. If, in the judgment of the DM, the agency has a need and use for the federal tax returns and/or return information they shall have the liaison formally request the information via Form 8796-A, and then transmit the federal tax returns and/or return information to the agency.

The Disclosure office may periodically perform quality reviews of other IRS functions releasing documents to ensure that the provisions of the implementing or other agreements are being met, the restrictions imposed by IRM 11.3.32.15, Restrictions on Disclosure of Federal Tax Returns and Return Information, are being followed, and the necessary accountings for disclosure are made. Both pre- and post- disclosure reviews can be conducted as appropriate as determined by the AD, Disclosure.

State tax agency or IRS compliance employees may, under specific circumstances, wish to discuss specific returns or return information directly with each other. This could occur, for example, if each agency is engaged in collection, examination or criminal investigation work independently of each other, at or near the same time. Typically, the taxpayer would alert either or both agencies of this situation. Allowing both the IRS and state tax agency employees to discuss their respective findings can facilitate efficient tax administration, reduce taxpayer burden, provide consistent development and application of the facts, and effectively leverage resources.

The general rule under IRC 6103(d) authorizes the IRS, absent any impairment to tax administration or identification of a confidential informant, to disclose federal tax returns and return information to state tax agencies upon written request. This includes oral disclosures. Section 5 of the basic agreement introduces these types of cooperative activities. If the state agency has signed an implementing agreement, section IV, paragraph 01 also provides guidance for how a state tax agency requests two-way discussions.

A state tax agency employee must submit a written request if they want to engage in a discussion with an IRS employee about a specific taxpayer. They would use Form 8796-A, Request for Return/Information (Federal/State Tax Exchange Program - State and Local Government Use Only), or similar written document to request a meeting or a continuous dialog with an IRS employee.

The Disclosure office, through the GSS, will process all requests from the state tax agency seeking a dialog with an IRS employee. See paragraph (7), below for exceptions.

If an IRS employee wants to initiate a discussion with a state tax agency employee about a specific taxpayer, a written request is required. Use Form 8796, Request for Return/Information (Federal/State Tax Exchange Program - IRS Use Only). Although only asking for information about a taxpayer from a third party (in this case a state tax agency employee) is generally an investigative disclosure under IRC 6103(k)(6), the IRS employee should still submit a written request using this form. See IRM 11.3.21, Disclosure of Returns and Return Information for Tax Administrative Purposes under IRC 6103(k), for additional information on IRC 6103(k)(6).

The IRS employee making the disclosure - who discusses taxpayer information – with a state tax agency employee is responsible for completing Form 5466-B, Multiple Records of Disclosure, in order to make an accounting for the disclosure. Refer to IRM 11.3.37, Recordkeeping and Accounting for Disclosures. Disclosure employees may provide guidance to the IRS employee if requested.

There is one exception to submitting requests directly to Disclosure for verbal discussions between the IRS and state tax agency employees. The IRS business unit, function or group may enter into a written memorandum of understanding (MOU) with the state tax agency that contemplates an exchange of tax information. Discussions with GLDS, Chief Counsel and the appropriate Business Unit are necessary. See IRM 11.4.1, Governmental Liaison Operations. If the MOU contemplates a streamlined disclosure of written or verbal tax information under IRC 6103(d) and is signed by a person authorized to make the disclosure under Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents, IRS employees can rely on the terms of the MOU when seeking to verbally exchange return information with a state tax agency partner. If the MOU is not signed by a person authorized by Delegation Order 11-2 to disclose federal tax returns or return information to a state tax agency, IRS and state tax agency employees must follow the guidance in the paragraphs above to submit a written request and receive a written authorization from Disclosure. Unless the MOU designates a specific individual responsible for preparing and submitting the disclosure accounting, the IRS employee making the disclosure is responsible for preparation of the Form 5466-B or narrative accounting memo.

State tax administration, as defined in Section 2.13 of the basic agreement, includes ongoing or potential conduct-related investigations of state tax agency employees. This definition also includes tax compliance-type checks related to suitability or background investigations of employees and prospective employees of state tax agencies. The management and supervision of a state’s internal revenue laws includes verification that its tax employees are free from conflicts of interest that could undermine the integrity of the state’s tax system. The standards for disclosures of this type are different from those for revenue compliance purposes.

When a state tax agency wants tax information for a purpose described in (1) above, a specific written request is submitted. Normal processing calls for these requests to be logged in to the inventory management system as a 6103(d) case.

In order to meet the need and use standards of IRM 11.3.32.8(4)(c), Authorized Disclosures pursuant to IRC 6103(d)(1), the request must include the following:

State requests for conduct-related disclosures are addressed in Section V of the implementing agreement.

After DM approval, the state can access the TDS to conduct their compliance check.

The IRS may initiate conduct-related disclosures when the state is eligible to receive the information and has shown a state tax administration need for that category of information even though it has not identified a particular employee. In such cases, the DM will follow the procedures set forth in Section VI of the implementing agreement.

When the DM has federal returns and/or return information that have not been requested by the state tax agency and therefore will not be transmitted to the agency under other processes, but the DM believes there may be evidence of any violation, suspected violation, or potential violation by an employee of the state tax agency of federal or state tax law or statutes, regulations, or rules governing the conduct of state tax employees that could damage the integrity of the tax administration system or, if known to the general public, could decrease public trust in the state tax agency, the DM will contact the state tax agency liaison official. Without disclosing identifying information, the DM will describe the return and/or return information in sufficient detail to ascertain the agency’s need and potential use of the return and/or return information. If, in the judgment of the DM, the agency has a need and use of the federal tax returns and/or return information, they shall have the agency liaison formally request the information via Form 8796-A, and then transmit the federal tax returns and/or return information to the agency.

State agencies may request information on the IP Address associated with an electronically filed tax return or other electronic transmission to the IRS. To request this information send an email to the point of contact on the RRR and include the following:

Submit a narrative record of accounting for disclosures made pursuant to IRC 6103(d) using the Share Point tool. Processing of the Form 5466-B, Multiple Records of Disclosure, places a Transaction Code on the taxpayer’s account that can be requested and/or released on a transcript of account. A narrative record of accounting avoids the potential for taxpayer notification that their information was disclosed.

A Narrative Record of Accounting site has been added to Disclosure’s 6103 Public Channel on TEAMS, to efficiently capture IRC 6103(d) disclosures. A link has also been added to the home page of the Disclosure Share Point site.

At the time of IRC 6103(d) disclosures, use the site to record the following items:

A notation must be placed in the electronic inventory management system’s history notes indicating the completion of a Narrative Record of Accounting. A copy of the Narrative Record of Accounting may also be placed in the case file but is not required.

IRC 6103(k)(5) permits the disclosure of limited information to state agencies with licensing, registration, or regulation of tax return preparers. The state agency responsible for these rules may or may not be the state tax agency.

The written request must be signed by the head of the agency, body or commission designating the officers or employees to whom such information is to be furnished.

The IRS may only disclose the following information under IRC 6103(k)(5) and only for the state or local agencies use in licensing, registering, or regulation of tax return preparers:

The state or local agency need not specifically list the names of return preparers for whom the information is requested. The state or local agency could request information with respect to any preparer who was assessed a penalty under any of the Code sections listed above.

Written requests are submitted to the GSS and worked in Disclosure.

The IRS may not disclose information regarding preparer penalties under IRC 6694, 6695, or 7216 to a state tax agency under IRC 6103(d)(1) because IRC 6103(d)(1) only authorizes disclosure of return information under specified IRC Chapters and these three penalty sections are not within the scope of the Chapters listed in IRC 6103(d)(1). A state tax agency can only receive information regarding preparer penalties under IRC 6694, 6695 or 7216 if the state tax agency is responsible for tax return preparer licensing, registration or regulation and it follows the procedures for disclosure under IRC 6103(k)(5).

Disclosures pursuant to IRC 6103(k)(5) are subject to the accounting requirements of IRC 6103(p)(3)(A).

Written requests for returns and return information must include:

The IRS personnel processing requests for returns and return information must be reasonably satisfied that the requester is who they claim to be. If there are doubts about a person's identity, IRS employees must request additional identity information. Disclosure employees are required to ensure that returns and return information are protected from unauthorized disclosure. They are responsible for verifying the identity and authority of the recipient to receive tax information prior to making any disclosure.

Persons described in IRC 6103(e) always have access to the appropriate return as specified in IRC 6103(e)(1) through IRC 6103(e)(6), subject to the limitations in IRC 6103(e)(10) for partnership, estates, trust or Subchapter S returns. Generally, these persons authorized under 6103(e)(1) through (e)(6) may also have access to return information. IRC 6103(e)(7) provides that return information will be disclosed if the IRS determines that disclosure would not seriously impair federal tax administration. Return information will be denied under this provision only if disclosure will impair an imminent or ongoing tax administration function in some significant way or have an adverse impact on the IRS's ability to administer the tax laws.

Casework in Disclosure will generally involve the following persons who may have access to returns and return information pursuant to IRC 6103(e):

For information on specific access and authentication requirements under IRC 6103(e) see IRM 11.3.2, Disclosure to Persons With a Material Interest.

IRC 6103(e) does not authorize implied consents. On occasion, Disclosure caseworkers may receive a request that is signed by both spouses. The presence of both spouses’ signatures does not establish an implied consent by the requesters to receive each other’s tax information. Disclosure employees must obtain an IRC 6103(c)/(e) consent prior to discussing or providing tax information to these individuals. For additional information on implied consents see IRM 11.3.41.3.10.4, Implied Consent.

When processing requests made pursuant to IRC 6103(e) initial analysis and ordering records must be completed at the earliest opportunity but no later than 10 business days of case assignment. Timely plan and schedule actions to order and review records and move the case toward closure within 30 business days of receipt. If a request made pursuant to IRC 6103(e) cannot be closed within 30 days, an interim response to include an anticipated final response date is required every 30 days until the case is closed.

IRC 6103(e)(8) provides for disclosures pertaining to deficiencies assessed with respect to persons who have filed jointly but are no longer married or no longer reside in the same household. Under IRC 6103(e)(8) certain limited collection information regarding one spouse must be disclosed to the other spouse relative to tax deficiencies with respect to a jointly filed return.

Information provided pursuant to IRC 6103(e)(8) is available to either spouse due to IRC 6103(e)(1), and to the extent IRC 6103(e)(7) does not prohibit release, a written request is required. Written requests can be signed by either spouse or their duly authorized attorney-in-fact.

Any employee delegated the authority to make disclosures pursuant to IRC 6103(e) by Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents, may make disclosures pursuant to IRC 6103(e)(8). Operationally, Collection employees will provide a response to an IRC 6103(e)(8) request. These requests should be forwarded to Collection. Generally, if the case is assigned to a RO, they will provide the relevant information to the requesting spouse or their duly authorized attorney-in-fact. If the case is not assigned to a RO, Collection Advisory will obtain the information and send a response to the requester. See IRM 5.1.22.4, Disclosure of Joint Returns - Divorced or Separated Spouses, and IRM 11.3.2.4.1.1, Disclosure of Collection Activities with Respect to Joint Returns for additional information.

IRC 6103(e)(9) provides for certain disclosures to persons who have been assessed the TFRP pursuant to IRC 6672. IRC 6103(e)(9) allows one responsible person to obtain certain limited information about other persons assessed the penalty for the same underlying tax.

Disclosures pursuant to IRC 6103(e)(9) shall be made only upon receipt of a written request. The request must be signed by a person actually assessed the TFRP or their duly authorized attorney-in-fact.

Any employee delegated the authority to make disclosures pursuant to IRC 6103(e) by Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents, may make disclosures pursuant to IRC 6103(e)(9). Operationally, Collection employees will provide a response to an IRC 6103(e)(9) request. These requests should be forwarded to Collection. Instructions for Collection personnel are found in IRM 5.1.22.5, Disclosure of Trust Fund Recovery Penalty Payment Information. They provide that if the case is not assigned to a RO, Collection Advisory will obtain the information and send it to the taxpayer. Appeals also has procedures in IRM 8.25.1, Trust Fund Recovery Penalty (TFRP) Overview and Authority.

See IRM 11.3.40, Disclosure Involving Trust Fund Recovery Penalty Assessments, for additional disclosure guidance when TFRPs are involved.

Persons described in IRC 6103(e) may have access to the appropriate return and return information as specified in IRC 6103(e), subject to the limitations in IRC 6103(e)(10) for partnership, estates, trust or Subchapter S returns.

IRC 6103(e)(10) limits the disclosure of certain information attached to tax returns. IRC 6103(e)(10) provides that information to be disclosed cannot include any supporting schedule, attachment, or list that contains third-party taxpayer identifying information other than that of the individual making the request for access.

See IRM Exhibit 11.3.2-2, Release of Documents/Schedules related to Forms 1065 pursuant to IRC 6103(e)(10), and IRM Exhibit 11.3.2-3, Release of Documents/Schedules related to Forms 1120S pursuant to IRC 6103(e)(10), for detailed guidance about IRC 6103(e)(10) limitations on information that can be released to requesters seeking access to tax returns, including schedules that must be restricted or sanitized prior to release.

IRC 6103(h)(4) allows state and local tax agencies to disclose returns and return information obtained pursuant to IRC 6103(d) in a state judicial or administrative tax proceeding but only after IRS verification that disclosure will not impair federal tax administration. Normal processing calls for these requests to be logged into the inventory management system as a 6103 “Other” case with the governing statutory provision entered as IRC 6103(h)(4).

Many states submit pro forma letters seeking this clearance and routinely receive responses approving the use of the returns and return information in the identified proceeding. Processing includes the caseworker conducting IDRS research for the year or years in question and reviewing for the presence of an open/ongoing civil or criminal case that may be evidence of potential impairment. Absent any such indications, the state is given clearance to use the information in its state tax proceeding.

Disclosure will use the following chart to determine if clearance is required:

If clearance is required, the caseworker must research to determine if there are any open compliance indicators that may be indicative of potential impairment. The IRS has rarely, if ever, denied state agencies the use of returns and return information in these proceedings and impairment issues should be uncommon. Use appropriate pattern language to respond to the requester and close the case in the inventory management system.

If clearance is not required the caseworker should contact the state employee and provide them guidance on when clearance is needed and close the case in the inventory management system.

States can request certification of records for use in a judicial or administrative proceeding. Follow the guidance in IRM 11.3.6, Seals and Certifications, to provide certified copies to state and local agencies.

States can submit their 6103(h)(4) requests seeking clearance via SDT. Even though many states submit pro forma letters seeking this clearance, not a Form 8796-A, the same SDT naming convention used with 6103(d) requests is used to send a 6103(h)(4) request or response via SDT. See IRM 11.3.41.5.3, Secure Data Transfer (SDT), for additional information.

The Treasury Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible for administering and enforcing specific tax administrant functions. See IRM 11.3.22.2.3.1, Alcohol and Tobacco Tax and Trade Bureau (TTB).

When returns and return information relating to taxes administered by the IRS (such as income tax returns) are needed by TTB employees for tax administration purposes, written requests should be submitted to HQ PPO who will work with Disclosure field for processing and responding.

Requests from TTB should be signed by an official not lower than a special agent in charge (SAC), and should include:

The Disclosure employee will process the requests and transmit the material to the requester or the designee. The DM must review the request prior to release. The Disclosure employee processing the request should:

In emergency situations, telephone requests may be made by TTB officials authorized to initiate written requests. A telephone request must be confirmed in writing by TTB within 24 hours. Telephone requests will be processed expeditiously; however, nothing should be disclosed until the written confirmation is received.

IRC 6103(h)(4) permits disclosure of returns and return information in federal and state judicial or administrative tax proceedings under specified conditions. A routine agency procedure to consider when working a request for information is to determine if the requester can receive the information, pursuant to IRC 6103(h)(4) by working directly with the BU employee working on the compliance activity. For example, if the requester wants a copy of the examination administration file, and there is a current audit being conducted, the caseworker should work with the requester and the examiner to determine if a release of the information from the examiner is possible.

A direct release under IRC 6103(h)(4) will be done by the BU employee working the compliance case when agreed upon by the requester. If the requester does not agree to receiving the records from the BU employee, Disclosure will still be required to work the request and IRC 6103(h)(4) will not apply. The Disclosure employee will only release records pursuant to IRC 6103(e) and specific material interest.

The information that can be disclosed pursuant to IRC 6103(h)(4) is as follows:

An ex parte court order issued pursuant to IRC 6103(i)(1) must:

On occasion, the appropriate official will notify the IRS Disclosure Office in advance when a determination is made to apply for an ex parte court order. This advance notification allows the IRS to expedite efforts to obtain and review returns and return information prior to receipt of the court order. Disclosure Offices will start processing procedures upon receipt of advance notice that application for an ex parte court order is being made. If advance notice is received, take immediate action to research for and order responsive documents. The possibility that an application may be rejected by the U.S. District Court is not a reason for inaction.

When there is a short deadline for receipt of the documents (usually 15 business days or less), the DOJ will often contact their local Disclosure Office to advise of the pending order. If an application for an ex parte court order sent to the GSS is assigned to a Disclosure office and the short deadline applies, contact the local office to determine if the case should be reassigned to their office (e.g., the DOJ has already contacted the local office to discuss what is needed). It is imperative to take action upon receipt of the advance notice rather than wait for the actual court order. Beginning the processing prior to receipt of the actual ex parte court order will help ensure all documents are received and forwarded to the US Attorney in a timely manner. Upon receipt of the ex parte court order application, to avoid duplicate cases, the Disclosure caseworker must contact the AUSA within 24 hours to ensure that they mail or fax the court order to the caseworker and not the GSS. The Disclosure caseworker should also discuss alternative products that are available.

A valid court order pursuant to IRC 6103(i)(1), does not need to repeat the information provided in the application and/or oral testimony of the prosecuting attorney. However, if the order doesn't specify the criminal violations being investigated or prosecuted, contact the requesting official to obtain the information. Caseworkers may accept oral or written confirmation of the statutes.

Ex parte court orders and written requests for disclosure that contain imperfections will be processed as if the request met the conditions of the statute. In these cases, the caseworker will immediately contact the requester and obtain an amended order or request, if required, while taking the necessary steps to obtain clearances and screen the requested files or returns. Requests that cannot be honored because they do not fall within the scope of the IRC 6103(i) process will also be discussed with the requester and the reason(s) for non-processing will be clearly communicated. The case history of the inventory management system must also contain notes concerning problems with requests and any actions taken to correct these problems.

Do not delay processing requests for information pending the receipt of a perfected order or written request. Make no disclosures, however, until you receive the required written request that meets all statutory requirements and until you have secured the DM authorization.

An amended order will not be required if the TIN is not provided since IRC 6103(i)(1) does not require the TIN. The Disclosure caseworker should attempt to secure the TIN from the U.S. Attorney and should disclose the returns and/or return information only if certain that they pertain to the taxpayer named in the order or request. In some cases, the order may indicate that the name of the taxpayer is unknown and substitute a dummy name such as "John Doe." As long as sufficient other information (TIN, DOB, address, etc.) is provided, the order can be honored. In such a case, it is still necessary for Disclosure personnel to be sure that the tax information being released is covered by the order.

Ex parte court orders issued pursuant to IRC 6103(i)(1) should be as detailed as possible. If an ex parte order requests information concerning classes or groups of individuals (e.g., all investors in X Corporation located in the state of X, without identifying each individual by name), the disclosure caseworker should do sufficient research to try and identify all relevant individuals. Contact with the AUSA should be made if additional information is needed. The DM, as the delegated authority, will determine if the circumstances outlined in the order warrant release of the information without requiring specific identification of each individual or other entity covered by the order. The DM may consider the following in determining how to respond to the Order:

Caseworker will ensure all research is completed and relevant records are obtained. If there are periods with open collection, examination, CI or other compliance activity, the Disclosure Office will obtain clearances from the applicable functions before releasing any return information pertaining to those periods. Maintain documentation of clearances in the electronic inventory management system and notate in the case history.

IRC 6103(i)(1) permits the disclosure of tax information to the DOJ in the investigation and prosecution of a non-tax criminal violation. If the non-tax violation listed in the order is identity theft (i.e., 18 USC 1028(a)), tax returns and/or return information may be released in full without redaction, including returns or return information that indicate identity theft.

If the non-tax violation listed in the order is something other than identity theft the Disclosure caseworker, after receiving an approved Authorization memo, must contact the AUSA and alert them to the ID theft issue. If the AUSA determines they want an un-redacted copy of the information, it will be provided in an un-redacted form. The Disclosure employee must inform the AUSA that it must seek approval from the IRS prior to disclosing the un-redacted information under IRC 6103(i)(4)(C).

If after contacting the AUSA it is determined that the AUSA wants the information in a redacted form then the employee must redact the information to protect the identity of the victim and/or alleged ID thief (whoever is the party not named in the Order). The Disclosure employee must use pattern language to inform the AUSA that the redactions were applied as there is an ID theft marker on the account and to protect the un-named party.

Unless otherwise provided in the ex parte order, disclosure will be limited to those returns and return information in the IRS’s possession on the date of the order.

Returns or related return information subsequently received or developed for the years authorized by the order may be disclosed only if the order provides for further disclosures and designates a specific cut off period.

In no case will the cutoff date exceed 90 days, even if the order specifies a cutoff date that exceeds the 90-day limit. This 90-day period is incorporated in the U.S. Attorney’s Manual. Certification of Form 3050 must apply to non-filing only for the time frame covered by the ex parte court order. See IRM 11.3.41.3.10.3, Certification, for information on how to address the cutoff date of the Order when completing the Form 3050.

If an IRC 6103(i)(1) order (after coordination with the requesting agency under (5) above) is determined to include tax documents (e.g., wage histories, letters to employers regarding incorrect SSNs submitted on Forms W-2), in the possession of the SSA, the case should be processed by Disclosure, who will obtain the necessary responsive documents from the SSA. The SSA has no statutory authority to provide tax documents to the requesting agency pursuant to an IRC 6103(i) request, only the Disclosure Office can release tax documents in such cases. The SSA will refer requesters who contact them for these records to the Disclosure Office. See IRM 11.3.41.8.6, Ex Parte Court Orders for SSA Records, for additional information.

After clearance actions and review of returns and return information are complete, the Disclosure caseworker will prepare a response letter using the appropriate pattern letter for the signature of the DM or acting DM.

Some offices may have procedures in place for the DM to approve the disclosures separately from the response letter process. In this situation, the authorization memo pattern letter(s) must be used to obtain the DM or acting DM authorization. This is acceptable as long as the written approval record is maintained in the electronic inventory management system.

Once the initial response letter authorized by the official designated by Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents, is sent to the AUSA, the Disclosure caseworker assigned to work the court order may make subsequent disclosures of information.

Accountings for disclosures of tax returns and return information must be made in accordance with IRC 6103(p)(3)(A). Accounting for disclosures made under IRC 6103(i)(1) require a narrative record of accounting. See IRM 11.3.41.8.3, Narrative Record of Accounting.

An ex parte court order case may be closed only when all requested documents have been provided or all required special search efforts are exhausted. If a caseworker is unable to locate the requested records, they must notify the requesting official that the records cannot be retrieved and offer to provide alternative products. This contact must be noted in the inventory management system’s case history and confirmed in writing in the response letter to the requesting official.

Subsection (e)(8) of the PA requires that agencies "...make reasonable efforts to serve notice on an individual when any record on such individual is made available to any person under compulsory legal process when such process becomes a matter of public record." See IRM 11.3.41.14.5, Notifying Individuals That Their Records Were Made Available Under a Compulsory Legal Process. If disclosure is made in response to an ex parte court order pursuant to IRC 6103(i)(1), notice will not be given until the ex parte court order becomes a matter of public record. If the ex parte court order does not indicate whether it is a matter of public record, the issuing authority will be asked to advise the IRS if the matter becomes public so that the required notice may be issued. This procedure will be carried out by the DM or under their direction.

When processing Court Orders, initial analysis must be completed at the earliest opportunity but no later than 3 business days of assignment, along with preparing and submitting the authorization memo to the DM for signature.

The Disclosure caseworker assigned to process the order will contact the requesting official, usually the AUSA named on the order and acknowledge receipt of the IRC 6103(i)(1) ex parte court order. Discussion with the AUSA must take place within 7 business days of assignment. If no AUSA is specifically named in the order, a verbal statement from the United States Attorney indicating the name of the AUSA assigned to the case is acceptable. The contact must be documented in the case history of the inventory management system. Actions to be taken include:

Order the returns/return information needed within 14 business days of assignment. Documents should be reviewed and delivered to the AUSA as soon as possible but no later than the cutoff date in the court order, not to exceed 90 days. Voluminous court orders may take longer to process and close with DM approval, which should be documented in case notes, and should include documented consideration for rolling productions. Court orders with imminent court dates must be processed expeditiously and closed by the date needed by the AUSA. Status reports must be provided to the AUSA at least once every 30 business days until the case is closed.

After receipt of a court order, and until the request has been satisfied, the caseworker must maintain contact with the requesting official regarding the status of the order, the estimated date all actions will be completed and any other pertinent information. Where agreements with requesting officials are in effect regarding contacts, timeframe expectations, etc., document the agreements in the case notes and maintain the agreements in the case file.

Submit a narrative record of accounting for ex parte court orders that are sealed or not a matter of public record. Processing of the Form 5466-B, Multiple Records of Disclosure, places a Transaction Code on the taxpayer’s account that can be requested and/or released on a transcript of account. A narrative record of accounting avoids the potential for taxpayer notification that their information was disclosed, prior to the order being made a public record.

A Narrative Record of Accounting site has been added to Disclosure’s 6103 Public Channel on TEAMS, to efficiently capture IRC 6103(i)(1) disclosures. A link has also been added to the home page of the Disclosure Share Point site.

At the time of IRC 6103(i)(1) disclosures, use the site to record the following items:

A notation must be placed in the electronic inventory management system’s history notes indicating the completion of a Narrative Record of Accounting. A copy of the Narrative Record of Accounting may also be placed in the case file but is not required.

Disclosure employees will generally not provide certified copies of returns or lack of record with an initial response. The AUSA may request certified copies at a later date if needed for presentation in court. Upon request by the AUSA, the caseworker should provide certified copies of a return or lack of record as soon as possible, generally within 2 business days.

All certification of tax returns by Disclosure employees in response to an IRC 6103(i)(1) court order is primarily done through the use of a certification stamp and embossed seal affixed to the first page of the document itself. Care must be taken to avoid covering important data, such as entity information, received date stamp, income reported, taxpayer signature, etc. Occasionally, there may be exceptions to Disclosure's method of certifying documents this way in response to a Court Order. Any exception to the certification stamp process should be handled on a case-by-case basis. See IRM 11.3.6, Seals and Certifications, for additional information on certification procedures.

When the MF indicates no record of filing, the Disclosure Office will certify lack of any record using Form 3050, Certification of Lack of Record, or equivalent (see IRM 11.3.6, Seals and Certifications). The Form 3050 must clearly indicate that the lack of record does not extend beyond any disclosure cut-off date in the order. To do this, add the following language to the Form 3050 in the "Description of Information Sought" section:
"As of MM/DD/YYYY, the Internal Revenue Service shows no return(s) filed for the following [tax year(s) or tax period(s)] pertaining to the [individual or business entity] described above."
The MM/DD/YYYY date entered in the pattern language should be the cutoff date of the Order. Case documentation should support that all information being provided to the AUSA is within the time frames of the Order.

The Form 3050 or certification of a tax return may be sent with the initial response to the AUSA. If the Form 3050 is not provided with the initial response, the final response letter must provide sufficient information to alert the AUSA to the lack of a filed return. If certification of a tax return or lack of record is subsequently requested by the AUSA the caseworker will create and provide the requested certification. The caseworker must include the pattern language referenced in (3) above and must ensure the cutoff date provided is within the timeframes of the order.

The existence of a transaction code on a transcript for an SFR doesn’t mean an actual paper SFR was prepared. See IRM 11.3.6, Seals and Certifications, for details on certifying SFRs.

The Bank Secrecy Act (BSA) provisions found in Title 31 of the USC require that certain currency transactions and other financial information be reported to the Secretary of the Treasury. The Financial Crimes Enforcement Network (FinCEN) has jurisdiction over these reports. They are:

The IRS will not process ex parte court order requests for BSA records. Should Disclosure receive an ex parte court order requesting BSA records, contact the requesting official and advise that per the December 22, 2011, DOJ memorandum, United States Attorneys are required to submit all requests for copies of BSA records to FinCEN. FinCEN will process all requests for BSA records (31 USC 5311).

For CTR data that is on an IRMF transcript, the order does not have to specifically require the release of BSA data. There must, however, be an indication, either by language in the order or by agreement between the Disclosure Office and the U.S. Attorney’s Office that IRMF transcripts will be provided in the response to ex parte court orders. Preferably, the order should contain language such as “including information returns” or “including Information Returns Master File data.” Providing IRMF transcripts may be a routine part of a Disclosure Office’s response to ex parte court orders and, thus, they are expected by the U.S. Attorney’s Office. In this case, the case file must contain a note documenting this practice. If receipt of the IRMF data is anticipated in response to the court order, BSA information on the IRMF transcript may be released. This discussion must be documented in the electronic inventory management system’s case history.

When releasing BSA information found on an IRMF transcript in response to an (i) Order, as described above, the caseworker must include the "BSA Warning Statement" pattern language in their final response. See Appendix II of the BSA Redissemination guidelines on the Disclosure SharePoint site for additional information.

The United States Attorney (USA) must follow appropriate procedures to secure an ex parte court order for the requested records. When the SSA receives ex parte court orders for records that contain federal tax information, they must make a referral to the IRS. Requests are typically received as a referral from SSA, however they can be sent directly from the DOJ to the IRS. Only the IRS can determine if release under the provisions of IRC 6103(i) is appropriate and authorize release of the records.

On occasion, the appropriate official will notify the IRS Disclosure Office in advance when a determination is made to apply for an ex parte court order. This advance notification allows the IRS to expedite efforts to obtain and review returns and return information prior to receipt of the court order. Disclosure Offices will start processing procedures upon receipt of advance notice that application for an ex parte court order is being made. If advance notice is received, take immediate action to research for and order responsive documents. The possibility that an application may be rejected by the U.S. District Court is not a reason for inaction.

The most commonly requested records are Detailed Earnings Query (DEQY). DEQYs summarize earnings for a given individual for the periods requested or, if requested, for the individual’s earning history. DEQYs contain IRC 6103 earnings information shared by the IRS with SSA for purposes of administering their programs. The IRS is not part of the billing or payment process – that is a matter handled between DOJ and the SSA.

Review the referral and accompanying ex parte order received from the SSA or DOJ to ensure that the requirements for release under 6103(i) are met as outlined in IRM 11.3.41.8, Internal Revenue Code (IRC) 6103(i)(1).

Obtain any necessary functional clearances. Prepare required correspondence:

Receive and prepare documents, ensure the documents match the Order. Requested records will be returned by the servicing SSA office to the requesting Disclosure caseworker. Review the received records for accuracy and completeness – if there is a problem contact the SSA immediately to take corrective action. Copy or import responsive documents as necessary. Review for any information that should not be released. Refer to IRM 11.3.41.8.1, General Case Processing for Disclosure to Department of Justice Under an Ex Parte Court Order Pursuant to IRC 6103(i)(1), for information to be withheld.

Prepare appropriate pattern correspondence to transmit records requested. With previous authorization from the DM, the appropriate Disclosure employee(s) can sign transmittal letters. Follow proper mail handling procedures in delivering the records to the proper recipient.

Properly document all disclosures utilizing the Narrative Record of Accounting located on the Disclosure SharePoint site. Document the inventory management system to show accountings have been made. See IRM 11.3.41.8.3 for more information.

Ensure all actions have been properly documented. Be sure copies of functional clearances, authorization letters, transmittal letters, and documentation of accounting for disclosures are included.

Processing ex parte court orders from foreign countries under Mutual Legal Assistance Treaties (MLAT) do not differ greatly from the ex parte court order procedures normally followed by Disclosure caseworkers. See the table in (7) for the at-a-glance similarities and differences.

Upon the receipt and assignment of an MLAT ex parte court order, the Disclosure caseworker will review the order for validity. Caseworkers will also calculate the order’s expiration date.

With all valid ex parte court orders, the authority in Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents, for disclosing confidential tax information pursuant to IRC 6103(i)(1) is delegated to the DM. In order to accomplish this, the DM signs an authorization memo prepared by the assigned caseworker.

With the release authorized, the assigned caseworker will send the signed DM Authorization to the LB&I, Exchange of Information (EOI), Competent Authority by secure message, advising of the expiration date of the order. The LB&I employee will research IDRS and request and secure the tax returns and transcripts.

The assigned LB&I employee will certify/notarize all documents and prepare the attestation, Form 3210, Document Transmital, Form(s) 3050, Certification of Lack of Record and Narrative of Accounting. LB&I will provide Disclosure with a copy of the attestation, the completed Form 3210, and the research conducted. The Disclosure caseworker will compare what information LB&I will provide against what is authorized in the order and IDRS research performed to ensure conformity with the order. Information to be reviewed includes, but is not limited to taxpayer identity, tax periods/years, the existence of no open functional controls, and information being released was received by the IRS before the expiration date of order. Email the LB&I employee with review findings (okay to be released or errors/issues found).

Import the attestation, IDRS research and Form 3210 reviewed into the case and notate whether LB&I can send the information to the treaty partner.

Similarities and differences:

You may receive an Ex Parte request asking for information on the IP Address associated with an electronically filed tax return or other electronic transmission to the IRS. To request this information send an email to the point of contact on the RRR and include the following:

On occasion, the IRS receives ex parte court orders seeking tax information and any FOIA requests that the subject of the order may have submitted to the IRS along with any documents provided under the FOIA.

IRC 6103(i)(1) permits the disclosure of tax information to the DOJ in the investigation and prosecution of a non-tax criminal violation. However, FOIA case files are protected under the PA. FOIA case files include the original request, history notes, coversheets, response letter, search memo or Form 2275, responsive documents, etc.

Under the PA, there are two conditions of disclosure that may allow for the disclosure of the FOIA case file pursuant to an Ex Parte Court Order:

If the ex parte court order includes appropriate language citing the PA, process the order to include the complete FOIA case file as part of the response.

If the ex parte court order does not contain appropriate language about the PA, before providing records, contact the AUSA and secure a letter signed by the U.S. Attorney requesting the disclosure of the FOIA case information pursuant to 5 USC 552a(b)(7). The requirements for such a letter are that it must:

The Uniform Code of Military Justice (UCMJ) is a federal statute and investigations/actions involving criminal violations of the UCMJ meet the requirements of the IRC 6103(i). If a military branch needs information under IRC 6103(i)(1), IRC 6103(i)(5) or IRC 6103(i)(7)(C), it should apply for the order through one of the DOJ employees listed in IRC 6103(i)(1)(B) or IRC 6103(i)(7)(C)(ii), as appropriate. One of the listed individuals must authorize the application and a federal district court judge or magistrate must grant the order. A military court judge cannot grant an IRC 6103(i)(1), IRC 6103(i)(5), IRC 6103(i)(7)(C) or IRC 6103(i)(7)(D) order.

IRC 6103(i)(2) provides that, upon receipt of a written request from the head of a federal agency, or the Inspector General thereof, or, in the case of the DOJ, the Attorney General, Deputy Attorney General, the Associate Attorney General, any Assistant Attorney General, the Director of the Federal Bureau of Investigation, the Administrator of the Drug Enforcement Administration, any U.S. Attorney, any special prosecutor (independent counsel) appointed under 28 USC 593, or any attorney in charge of an organized crime strike force established pursuant to 28 USC 510, return information (other than taxpayer return information) shall be disclosed to certain officers and employees of such agency. Taxpayer identity information for this purpose is not considered taxpayer return information. This provision limits disclosure to officers and employees who are personally and directly engaged in:

A valid request must be made in writing and contain the follow elements:

The fact that IRS records indicate a specific taxpayer filed or failed to file a return is other than taxpayer return information.

An amended written request will not be required if the TIN is not provided since IRC 6103(i)(2) does not require the TIN. The Disclosure caseworker should attempt to secure the TIN from the requesting official and should disclose the other than taxpayer return information only if certain that they pertain to the taxpayer named in the order or request. In some cases, the request may indicate that the name of the taxpayer is unknown and substitute a dummy name such as "John Doe" . As long as sufficient other information (DOB, address, etc.) is provided, the request can be honored. In such a case, it is still necessary for Disclosure personnel to be sure that the other than taxpayer return information being released is covered by the request.

The caseworker will ensure all research is completed and relevant records are obtained. If there are periods with open collection, examination, CI or other compliance activity, the Disclosure Office will obtain clearances from the applicable functions before releasing any return information, other than taxpayer return information, pertaining to those periods. Maintain documentation of clearances in the electronic inventory management system and notate in the case history.

Seek approval by the designated official per Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents, prior to releasing any information. The authorization memo pattern letter(s) must be used to obtain the DM authorization.

Some offices may have procedures in place for the DM to approve the disclosures separately from the response transmittal process. In this situation, the authorization memo pattern letter(s) must be used to obtain the DM authorization. This is acceptable as long as the written approval record is maintained with the case.

Transmit the requested information, after approval by the designated official per Delegation Order 11-2, using the appropriate pattern letter.

Accountings for disclosures of other than taxpayer return information must be made in accordance with IRM 11.3.37, Recordkeeping and Accounting for Disclosures. Accounting for disclosures made under IRC 6103(i)(2) are done by completing a narrative record of accounting. See IRM 11.3.41.9.3, Narrative Record of Accounting.

When processing IRC 6103(i)(2) requests, initial analysis must be completed at the earliest opportunity but no later than 3 business days of assignment, along with preparing and submitting the authorization memo to the DM for signature.

The Disclosure caseworker assigned to process the written request will contact the requesting official and acknowledge receipt. Discussion with the requester must take place within 7 business days of assignment. The contact must be documented in the case history of the inventory management system. Actions to be taken include:

Secure the other than taxpayer return information within 14 business days of assignment. Then, review and deliver documents to the requester as soon as possible. Voluminous documents may take longer to process and close. Ensure case notes support any extended case processing timelines and reflect DM approval. Case notes should also document consideration for rolling productions. Status reports must be provided to the requester at least once every 30 business days until the case is closed.

After receipt of a written request, and until the request has been satisfied, the caseworker must maintain contact with the requesting official regarding the status of the request, the estimated date all actions will be completed and any other pertinent information. Where agreements with requesting officials are in effect regarding contacts, timeframe expectations, etc., document the agreements in the case notes and maintain the agreements in the case file.

Submit a narrative record of accounting for IRC 6103(i)(2) requests. Processing of the Form 5466-B, Multiple Records of Disclosure, places a Transaction Code on the taxpayer’s account that can be requested and/or released on a transcript of account. A narrative record of accounting avoids the potential for taxpayer notification that their information was disclosed, prior to the order being made a public record.

A Narrative Record of Accounting site has been added to Disclosure’s 6103 Public Channel on TEAMS, to efficiently capture IRC 6103(i)(1) disclosures. A link has also been added to the home page of the Disclosure Share Point site.

At the time of IRC 6103(i)(2) disclosures, use the site to record the following items:

A notation must be placed in the electronic inventory management system’s history notes indicating the completion of a Narrative Record of Accounting. A copy of the Narrative Record of Accounting may also be placed in the case file but is not required.

IRC 6103(i)(3)(A) permits the Commissioner or their delegate to disclose in writing, return information (other than taxpayer return information) that may constitute evidence of a violation of a federal non-tax criminal statute. Disclosures can be made to the extent necessary to apprise the head of the appropriate federal agency charged with enforcement responsibility. The head of the requesting agency may re-disclose that information to officers and employees of the agency to the extent necessary to enforce the law. Information will not be disclosed if disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation. Information that merely indicates a violation may have occurred is adequate to warrant referral to the appropriate federal agency. The information must sufficiently identify the specific criminal act or event or statute to which it relates. For referrals made under IRC 6103(i)(3)(A), when return information (other than taxpayer return information) that may constitute evidence of a violation of a non-tax federal criminal law is disclosed, the identity (name, address, SSN and DOB) of the taxpayer may also be disclosed. The taxpayer identity information is treated as return information, other than taxpayer return information, in this instance. However, taxpayer identity information may not be disclosed by itself under IRC 6103(i)(3)(A).

IRC 6103(i)(3)(B)(i) permits the Commissioner or their delegate to disclose return information (including taxpayer return information) to the extent necessary to apprise appropriate officers or employees of any federal or state law enforcement agency of the circumstances involving an imminent danger of death or physical injury to any individual. The source of information detailing the threat of imminent harm is irrelevant. The IRS makes its own determination whether an emergency situation exists. These disclosures are limited to federal or state law enforcement agencies and cannot be made to local law enforcement agencies such as county or city police departments. Disclosures under IRC 6103(i)(3)(B) are not subject to the confidential informant and tax impairment determinations required under IRC 6103(i)(6). However, it is IRS policy never to release the identity of confidential informants.

Disclosure personnel will give expedited assistance or technical guidance, when sought, to CI personnel considering disclosures under IRC 6103(i)(3)(B)(i). In situations involving imminent danger of death or physical injury, special agents are the only non-supervisors having the authority to make an immediate determination and subsequent disclosure. When disclosure is authorized, the DM or other function may provide the information by telephone to the appropriate officer or employee of the federal or state law enforcement agency that could take action on the imminent situation.

IRC 6103(i)(3)(B)(ii) permits the Commissioner or their delegate to disclose return information (including taxpayer return information) to the extent necessary to apprise appropriate officers or employees of any federal law enforcement agency in circumstances involving the imminent flight of any individual from federal prosecution. This provision is intended to cover individuals who could be prosecuted for flight from prosecution, as a separate federal offense, and circumstances where an individual has attempted to change identity or intends to flee from the country. Special agents do not have the authority to make a disclosure in imminent flight situations. However, SACs may make these disclosures. Disclosures under IRC 6103(i)(3)(B) are not subject to the confidential informant and tax impairment determinations required under IRC 6103(i)(6). However, it is IRS policy never to release the identity of confidential informants.

IRC 6103(i)(3)(C)(i) allows the IRS on its own to disclose in writing return information (other than taxpayer return information) that may be related to a terrorist incident, threat, or activity to the extent necessary to apprise the head of the appropriate investigating or responding federal law enforcement agency. This authority is exercised by officials having Delegation Order 11-2 authority, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents. Taxpayer identity information for this purpose is not considered taxpayer return information. The head of the agency may re-disclose the information received to officers and employees of that agency to the extent necessary to investigate or respond to the terrorist incident, threat, or activity.

IRC 6103(i)(3)(C)(ii) permits the disclosure of returns and taxpayer return information to the Attorney General to the extent necessary to prepare an application under IRC 6103(i)(7)(D). Generally, processing of IRC 6103(i)(3)(C) (and IRC 6103(i)(7)(A), IRC 6103(i)(7)(B), and IRC 6103(i)(7)(C)), requests are handled by Disclosure PPO and will parallel processing of IRC 6103(i)(1), IRC 6103(i)(2), and IRC 6103(i)(5) requests. Disclosures under the authority of IRC 6103(i)(3)(C) are subject to a determination by the IRS that they will not identify a confidential informant or seriously impair a civil or criminal tax investigation.

IRM 11.3.34, Disclosure for Non-Tax Criminal Violations, provides instructions for instances when IRS employees receive non-tax information about a possible non-tax violation of federal, state or local criminal laws.

When processing IRC 6103(i)(3) requests, initial analysis must be completed at the earliest opportunity but no later than 3 business days of assignment.

The Disclosure caseworker assigned to process the referral will contact the IRS employee, confirm receipt of the referral, and discuss the specifics of the request. Discussion with the IRS employee must take place within 7 working days of assignment. The contact must be documented in the case history of the inventory management system. Actions to be taken include:

Information should be reviewed, and a referral letter provided to the appropriate federal agency as soon as possible.

After receipt of a written referral, and until the request has been satisfied, the caseworker must maintain contact with the IRS employee regarding the status of the request, the estimated date all actions will be completed and any other pertinent information. Where agreements with the IRS employees are in effect regarding contacts, timeframe expectations, etc., document the agreements in the case notes and maintain the agreements in the case file.

IRC 6103(i)(7)(A) allows the IRS to disclose return information (other than taxpayer return information) to officers and employees of any federal law enforcement agency who are personally and directly engaged in responding to or investigating any terrorist incident, threat, or activity. A written request signed by the head of the federal law enforcement agency or their delegate is required. The written request must set forth the specific reason(s) why disclosure may be relevant to a terrorist incident, threat, or activity. Taxpayer identity information for this purpose is not considered taxpayer return information. Limited re-disclosure is allowed to state or local law enforcement employees personally and directly engaged as a part of a team with the federal law enforcement agency in the response or investigation.

IRC 6103(i)(7)(B) allows the IRS to disclose return information (other than taxpayer return information) upon the written request of an officer or employee of DOJ or Treasury who is appointed by the President with the advice and consent of the Senate or who is the Director of the U.S. Secret Service, if that individual is responsible for the collection and analysis of intelligence and counterintelligence concerning any terrorist incident, threat, or activity. Taxpayer identity information for this purpose is not considered taxpayer return information. The written request must set forth the specific reason(s) why disclosure may be relevant to a terrorist incident, threat, or activity. Disclosures under IRC 6103(i)(7)(B) may be made to those officers and employees of DOJ, Treasury, and other federal intelligence agencies who are personally and directly engaged in the collection or analysis of intelligence and counterintelligence information or investigation concerning any terrorist incident, threat, or activity. These disclosures shall be made solely for the use of the officers and employees in the investigation, collection, or analysis.

IRC 6103(i)(7)(C) creates an ex parte court order process similar to IRC 6103(i)(1). It provides that, upon grant of an ex parte order by a federal district court judge or magistrate, returns and return information with respect to a specified period(s), shall be disclosed to officers and employees of any federal law enforcement or federal intelligence agency who are personally and directly engaged in any investigation, response to, or analysis of intelligence and counterintelligence information concerning any terrorist incident, threat, or activity. These disclosures shall be solely for the use of such officers and employees in the investigation, response, or analysis, and, subject to IRC 6103(i)(4) provisions, in any judicial or administrative proceeding pertaining to the terrorist incident, threat, or activity.

IRC 6103(i)(7)(D) allows the IRS Commissioner to authorize an application for an ex parte order described in IRC 6103(i)(7)(C). In granting the order, the U.S. District Court judge/magistrate must determine that, on the basis of the facts submitted by the applicant, there is a reasonable cause to believe the return or return information may be relevant to a matter relating to the terrorist incident, threat, or activity. The facts submitted by the applicant must be based upon information believed to be reliable. Information may be disclosed pursuant to IRC 6103(i)(7)(D) only to the extent necessary to apprise the head of the appropriate federal law enforcement agency responsible for investigating or responding to a terrorist incident, threat, or activity. Information so disclosed shall be used solely in a federal investigation, analysis, or proceeding concerning a terrorist incident, threat, or activity. The head of the agency may re-disclose the information to officers and employees of that agency to the extent necessary to investigate or respond to the terrorist incident, threat, or activity. IRS disclosures to DOJ to make an application for the ex parte order described in IRC 6103(i)(7)(D) are authorized under IRC 6103(i)(3)(C)(ii). Disclosure PPO coordinates the IRC 6103(i)(7)(D) process.

Disclosures under the authority of IRC 6103(i)(7) are subject to a determination by the IRS that they will not identify a confidential informant or seriously impair a civil or criminal tax investigation.

IRC 6103(i)(7)(A) and IRC 6103(i)(7)(B) disclosures will be handled like IRC 6103(i)(2) requests.

IRC 6103(i)(7)(C) ex parte orders will be handled like IRC 6103(i)(1) ex parte orders.

Subsection (e)(8) of the PA requires that agencies "...make reasonable efforts to serve notice on an individual when any record on such individual is made available to any person under compulsory legal process when such process becomes a matter of public record." See IRM 11.3.41.14.5, Notifying Individuals That Their Records Were Made Available Under a Compulsory Legal Process. If disclosure is made in response to an ex parte court order pursuant to IRC 6103(i)(7)(C), notice will not be given until the ex parte court order becomes a matter of public record. If the ex parte court order does not indicate whether it is a matter of public record, the issuing authority will be asked to advise the IRS if the matter becomes public so that the required notice may be issued. This procedure will be carried out by the DM or under their direction.

GLDS, in close coordination with CI, will prepare and obtain approval for ex parte applications under IRC 6103(i)(7)(D).

Questions concerning IRC 6103(i)(7) issues should be directed to the PPO policy analyst liaison to CI.

Any correspondence marked "Classified," "Secret" or "Top Secret" should be immediately forwarded, unopened, to the PPO SDA.

IRC 6103(i)(7)(A) and 6103(i)(7)(B) requests are handled like IRC 6103(i)(2) requests. Refer to the case timeliness expectations in IRM 11.3.41.3.7, Case Timeliness Expectations, and IRM 11.3.41.9.2 , Case Timeliness Expectations IRC 6103(i)(2), when working these types of requests.

IRC 6103(i)(7)(C) Court Orders are handled like IRC 6103(i)(1) Court Orders. Refer to the case timeliness expectations in IRM 11.3.41.3.7, Case Timeliness Expectations, and IRM 11.3.41.8.2 , Case Timeliness Expectations IRC 6103(i)(1), when working these types of requests.

IRC 6103(l)(1)(A) provides that the IRS may disclose specified tax information to the SSA for SSA’s administration of the Social Security Act. More specifically, upon written request from SSA, the IRS may provide returns and return information with respect to taxes imposed by IRC chapter 2, Tax of Self Employment; chapter 21, Federal Insurance Contributions Act (FICA) taxes; and chapter 24, Collection of Income Tax at Source on Wages including copies of self-employment schedules, unreported tip returns, and other information used to ensure the accuracy of wage, tip and self-employment postings to the earnings records for Social Security Administration. Normal processing calls for these requests to be logged in as a 6103 "Other" case with the governing statutory provision entered as 6103(l)(1)(A). In addition to Memorandums Of Understanding’s disclosure does process ad hoc requests for SSA. Below are the procedures for processing such requests.

To be valid, a request from SSA must:

Only certain SSA officials are authorized to sign a request for information pursuant to IRC 6103(l)(1)(A). See the listing of SSA officials on the RRR. If not signed by the appropriate delegated official, return the request and advise the originator of the signature requirements.

IRC 6103(l)(1)(A) does not permit disclosure of complete tax returns or transcripts. Do not give SSA a complete copy of the return or a complete copy of a transcript. SSA will use Form 4506, Request for Copy of Tax Return, (IRC 6103(c) consent request) to secure tax information they need beyond their IRC 6103(l)(1)(A) authority. Under no circumstances should Disclosure Offices process 6103(c) requests for tax information from SSA.

The IRS can provide documents reflecting self-employment income or the computation of self-employment tax filed with Form 1040, U.S. Individual Income Tax Return.

Releasable transcript information should be provided whenever possible. SSA must ensure earnings records are accurate with respect to wages and self-employment income, so only relevant portions of tax returns or information return transcripts should be provided. If SSA requests a copy of Schedule C, E, F, H or SE from a tax return, and these schedules are determined to contain self-employment income and are therefore responsive, provide a print using either the RTVUE or RTFTP command code of only those particular schedules (if those prints are available).

Form 4137, Social Security and Medicare Tax on Unreported Tip Income, or Form 8919, Uncollected Social Security and Medicare Tax on Wages, that show the total unpaid Social Security and Medicare tax should be secured using IDRS Command Code RTVUE with definer U1.

The IRS can provide amended income tax returns that reflect changes to the above referenced schedules or if that amended return relates to changes that impact self-employment income or tax. Do not disclose a Form 1040X, Amended U.S. Individual Income Tax Return, that does not include changes to self-employment tax, even if requested.

Audit results may be disclosed only if the audit adjusted self-employment income (net) or self-employment tax. Restrict the audit results to items related to SE income or tax. Sanitize other changes. SSA understands that ordering audit files requires additional processing time. SSA should only request this information if there is reasonable belief that the IRS adjusted the SE income or tax.

If records determined to be responsive indicate that other types of tax returns, such as a partnership return (Form 1065, U.S. Return of Partnership Income) or employment tax returns, including Form 94X series returns, were filed, they can also be requested separately if needed. Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return; Form 941, Employer's Quarterly Federal Tax Return; and Form 942, Employer's Quarterly Tax Return for Household Employees, employment tax returns do not include the names of the individuals earning wages, so they may be of limited value. Partnership income specific to the claimant should be reflected on Schedule E of Form 1040 and should be requested only if there is a question about the accuracy of the amount claimed.

The IRS can also provide Forms 1099, Series, and FICA amounts and taxes withheld reflected on Form W-2, Wage and Tax Statement. Caseworkers will provide relevant portions of available Information Returns using IDRS Command Code IRPTR. Only those schedules that reflect self-employment earnings, can be provided. For example, the following can be disclosed:

Other Forms/Returns, that can be provided include:

On request, the IRS can disclose whether a return was filed (fact of filing) that reflected self-employment income and/or self-employment taxes paid.

Responding to Requests - Limit your response to only the information identified by SSA in the signed request and request template. Because the information provided is subject to penalties for unauthorized access or disclosure, ensure the approved penalty paragraph is included in the final response letter.

Rejecting Requests - If a request from SSA uses Form SSA 7057-U3 or some other invalid form, prepare a response that includes the following language:
"We are returning your Form SSA 7057-U3 used to request information from the IRS. The IRS and SSA have a negotiated process to be used whenever SSA needs information to verify the accuracy of earnings files. We have enclosed an explanation of those procedures. Please resubmit your request using the enclosed template in accordance with the agreed upon process. If you have any questions, please contact (name of Disclosure caseworker) at: xxx-xxx-xxxx or write to: xxxxxxx. Please refer to case number xxxxxx."


Reject any request that seeks IRP information that is more than 10 years old or tax returns or tax return information more than 7 years old. Indicate in your response that the information requested has been destroyed in accordance with guidelines located in Document 12990, Records Control Schedules (RCS). Even if the possibility exists that an older tax return might be available in an administrative file or elsewhere, IRS and SSA have agreed that disclosure of tax returns or tax return information will be limited to the 7 most recent years.

IRC 6103(I)(1)(A) disclosures do not require IRC 6103(p)(3)(A) accounting but are subject to IRC 6103(p)(4) safeguard requirements.

When processing requests made pursuant to IRC 6103(l)(1)(A) initial analysis and ordering records must be completed at the earliest opportunity but no later than 10 business days of case assignment. Plan and schedule timely actions to order and review records and move case toward closure within 30 business days of receipt. If a request is made pursuant to IRC 6103(l)(1)(A) and cannot be closed within 30 days, an interim response to include an anticipated final response date is required every 30 business days until the case is closed. Provide SSA with the requested information as quickly as possible, considering their need for timely information and our requirement to effectively manage overall inventory.

The Disclosure office is responsible for operational casework related to requests for access to and disclosure of IRS information pursuant to the FOIA. The Disclosure office will control and process written FOIA requests. The Disclosure Office has the delegated authority to make FOIA determinations regarding the release of IRS agency records (See Delegation Order 11-7, Authority for Initial Determinations with Respect to Written Requests for Records Pursuant to 5 USC 552, Freedom of Information Act, found in IRM 1.2.2.12.6 ).

Requests under the FOIA are indexed as FOIA case types in the inventory management system.

Paper requests must be date stamped or be marked by hand with the date received in the local Disclosure office or when received by the GSS. Receipts received electronically will be identified by the date they are electronically provided to the GSS, or the next business day if received on a weekend, holiday or after normal business hours (6:00 A.M. to 6:00 P.M. EST, Monday through Friday). This establishes the receipt date for the request and allows an accurate computation of the statutory 20-day period for a response or a request for extension. The received date for requests faxed or received through an online portal is the date of the fax or online portal submission date unless it falls on a weekend, holiday or after normal business hours in which case the received date will be the next business day. See IRM 11.3.41.3.1, Receipt and Control, for additional information.

The assigned caseworker must analyze each FOIA request following general initial analysis guidance. Additionally, the FOIA, as implemented through regulations found at 26 CFR 601.702, requires that a request:

Further analysis may be needed to determine if a response is appropriate under the FOIA. Analysis of the correspondence may reveal the following:

The initial review of any request must include an analysis of the content of the request to determine if it complies with FOIA regulations or, if not, whether the information could be provided under another provision of law or under established agency procedures, as appropriate.

If reassignment to another agency outside the IRS is appropriate, DMs must ensure the request is reassigned to the correct agency within 10 business days. The OPEN Government Act provides that agencies have 10 business days to route a request to the correct agency FOIA office, after which the statutory response time begins.

When a request seeks tax records of a taxpayer other than the requester, it must include proof that the requester is authorized to obtain the records sought. This authority may be proven:

If the request does not meet other regulatory provisions, treat the request as imperfect and advise the requester.

For requests where inspection is desired, contact the requester and advise that we will provide all responsive documents in an electronic format. Explain the fee structure as stated in IRM 11.3.5, Fees. Records involving open compliance files may be obtained by submitting a request to the IRS employee with the records under IRC 6103. If applicable, this option should be explained to the requester for obtaining requested records involving open compliance files. If the requester insists on inspecting records, contact the FOIA policy analyst.

When processing FOIA requests, initial analysis must be completed at the earliest opportunity but no later than 3 business days of case assignment. Order records commensurate with initial analysis but no later than 3 business days of initial analysis (6 business days total from case assignment).

Follow-up Actions:

When resolving FOIA requests, cases must be closed within 1 business day of the final action taken, such as but not limited to the issuance of the final response letter, determining the request is imperfect or determining there are no responsive records.

After determining that a request is valid, Disclosure personnel must also determine the scope of the request and the manner in which to conduct a search for responsive records. Disclosure personnel will initiate search efforts from the business unit that has jurisdiction of the records requested or conduct a reasonable search themselves if the records are maintained by Disclosure to ensure they locate the documents the requester seeks. Disclosure staff must use available procedures to retrieve records and provide the most expeditious response possible to the requester. These procedures may include such negotiated procedures as initial special searches and direct contact with FRCs.

Disclosure FOIA caseworkers must use the official, approved Disclosure Search Memo when search efforts require caseworkers to formally reach out to business unit personnel to conduct searches for FOIA responsive records. It is no longer permissible for Disclosure caseworkers to send emails requesting copies of records without including a copy of an official, approved search memo.
Use of this search memo provides consistency and standardizes what information is conveyed to each office (e.g., ensures FOIA caseworkers are provided all necessary information to perform a proper search, review and accounting of FOIA activities) and is a good tool to properly document the search effort, including business unit documentation of their FOIA search and review efforts. The following limited exceptions do not require official search memos to be prepared:

When searches return no responsive records, requesters may appeal the scope and adequacy of the search for responsive records. Clearly document the logic behind search efforts in the case file by either case history notes, check sheets, or another readily understood method. Also include documentation of the search efforts completed by the business units indicating no responsive records were located.

Case notes must support the adequacy of the search supporting the no responsive documents response. The incoming request, transcripts, search memos, and the written response can also be used to sufficiently document the search effort.

Disclosure personnel must ensure that requests for records identified by a DLN relate to the requester before attempting to locate them. Because DLNs are especially vulnerable to typographical and transposition errors, requests must also identify the tax form and tax period for the DLNs requested and the caseworker must confirm that the documents retrieved belong to the requester prior to release. The requester does not need to provide the IDRS transaction code associated with the DLN.

If it can be readily ascertained (without additional research) that the requested record is a computer-generated record for which no paper or electronic copy is maintained, the requester shall be so advised. Case notes must be entered to document the process used to determine that the requested record is computer-generated with no associated paper copy. See IRM 11.3.41.13.8.38, Requests for Documents Associated with a Document Locator Number (DLN).

Some requests seek records from a certain time period to the "present." Interpret the "present" to mean the date the request is received by the Disclosure office. For a discussion of the cut-off date for records searches, see IRM 11.3.41.13.5.1, Adequacy of Search. Records created after the received date of the request are not considered responsive to the request. However, even if the record was created after the received date of the FOIA, release should be considered based upon the concept of openness and transparency or based on the time it takes to locate and retrieve responsive records.

DMs and staff will attempt to meet both the letter and spirit of the statutes governing the FOIA process by applying a liberal interpretation to the intent of the requester and the scope of the request without making assumptions or guessing what the requester is seeking. It may be necessary to communicate with the requester to clarify the request as well as with those employees conducting the search. It is inappropriate to hold frequent requesters or professionals to a higher standard of exactitude because "they should have known better" or "they know the law, so we shouldn't read anything into the request" while giving the "benefit of the doubt" to first time or infrequent requesters. The aim of the FOIA process is to provide consistent, top-quality service to all requesters.

If, while waiting for a response to a search request, notification is provided to the caseworker that the requested records no longer need to be secured by the caseworker (the requester withdraws the FOIA request, etc.) caseworkers must notify the business function the records are no longer needed and rescind the search request. Provide the reason the search is no longer needed and the date notification was provided to the business function the records are no longer needed.

Whenever a request seeks records that originated outside of the IRS, Disclosure personnel will make a determination, after coordination with the records’ originator, whether the records are agency records based upon the factors mentioned in IRM 11.3.13.3.3, Definition of Agency Record.

Once the responsive records have been gathered, Disclosure personnel will review the material and determine what should be released or what should be withheld in full or in part.

The determination to grant or deny access to a specific record is made for each request on a case-by-case basis. It requires an understanding of:

The determination also requires an understanding of the nine FOIA exemptions, three special law enforcement exclusions, applicable statutes, relevant court cases, precedents, and IRS-wide guidelines issued by HQ Disclosure PPO.

The role of Disclosure personnel in this process is two-fold:

Generally, the advice of the function maintaining or originating the record requested weighs heavily in the determination regarding release of the information by Disclosure personnel. There are times, however, when the DM or staff interpretation of the facts of the case and the disclosure statutes may be different from the initial advice provided by the function. The ultimate responsibility for the disclosure determination resides with the DM pursuant to the disclosure authority outlined in 26 CFR 601.702, Delegation Order 11-7, Authority for Initial Determinations with Respect to Written Requests for Records Pursuant to 5 USC 552, Freedom of Information Act, found in IRM 1.2.2.12.6, and, Delegation Order 11-2, found in IRM 1.2.2.12.2, Delegation Order 11-2 (Rev. 4), Authority to Permit Disclosure of Tax Information and to Permit Testimony or the Production of Documents.

DMs and staff must make an independent judgment on the disclosure or withholding of records after considering the views of the affected functions and their understanding of the law. Disclosure personnel are responsible for balancing the two roles described in (4) above. They are also responsible for explaining the reasoning behind the final determination to withhold or release information. Some determinations are discretionary, and some are clearly nondiscretionary by statute.