What Legal Authority Allows the IRS to Share Federal Tax Information with Government Agencies?

Learn how Title 26 USC Section 6103 grants the IRS authority to disclose Federal Tax Information to federal, state, and local agencies under strict legal guidelines.

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The IRS’s authority to disclose Federal Tax Information (FTI) to federal, state, and local agencies is provided under Title 26, US Code, Section 6103. This section outlines specific conditions under which the IRS can share tax information, ensuring strict compliance with legal standards to protect taxpayer privacy. Agencies receiving FTI must adhere to stringent security and confidentiality requirements, using the information solely for authorized purposes such as administering tax laws, investigative or judicial proceedings, or when approved by the taxpayer themselves.

FAQs & Answers

  1. What is Federal Tax Information (FTI)? Federal Tax Information (FTI) refers to confidential taxpayer data collected by the IRS that is protected under federal law to ensure taxpayer privacy and security.
  2. Under what conditions can the IRS share FTI with other agencies? The IRS can share FTI with federal, state, and local agencies when it is authorized under Title 26 USC Section 6103, typically for purposes like tax administration, investigations, judicial proceedings, or with taxpayer consent.
  3. What safeguards are in place to protect FTI when disclosed? Agencies receiving FTI must follow strict confidentiality and security regulations, ensuring the information is only used for authorized purposes and protected against unauthorized access.
  4. Where can I find the law that governs the IRS authority to disclose FTI? The legal authority is established in Title 26 of the United States Code, Section 6103, which outlines the rules and conditions for disclosure of Federal Tax Information.

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