11.3.3. Disclosure to Designees and Practitioners

(1) The primary law governing the authority for disclosure of federal tax information is 26 USC 6103, commonly referred to as the Internal Revenue Code (IRC) 6103. IRC 6103(a) establishes the confidentiality of returns and return information and prohibits any disclosure not authorized by the Code.

(2) IRC 6103(c) provides that returns and return information may be disclosed to persons designated by the taxpayer in a request for, or consent to, disclosure. It also provides for disclosures to any person at the taxpayer’s request for information, or assistance made by the taxpayer to another person. The Treasury Regulation under IRC 6103(c), 26 CFR 301.6103(c)-1, sets out requirements for such disclosures.

(1) The following items govern the authority pertaining to disclosures to designees and practitioners:

• 26 USC 6103(c)

• 26 USC 6103(e)(6)

• 26 USC 6103(e)(7)

• 26 CFR 301.6103(c)-1

• Delegation Order 11-2 (Rev. 4) (found in IRM 1.2.2.12.2 and Exhibit 1.2.2-2 .

(1) This Internal Revenue Manual (IRM) is used by all IRS employees (including agents or contractors) authorized under Delegation Order 11-2 (Rev. 4), (found in IRM 1.2.2.12.2) and IRM Exhibit 1.2.2-2 , who make disclosures of tax information to a designee or practitioner as part of their official duties.

(2) This IRM may also be used by Federal government agencies executing consents under IRC 6103(c) for a tax administration function (see 26 CFR 301.6103(c)-1(c)).

(3) The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights

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

(1) The following is a list of the terms and acronyms that are used in this IRM section:Terms and Definitions

(1) The following table lists other sources of guidance on disclosures to designees and practitioners:

(2) Additional information may also be found at these related resources:

• IRS Income Verification Express Service (IVES) processing of requests for transcripts

• IRS Office of Professional Responsibility

• Tax Information Authorization on Disclosure Knowledge Management Portal

(1) IRC 6103(c) and 26 CFR 301.6103(c)-1 govern disclosure to designees generally.

(2) 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 tax matter must be on a separate written document pertaining solely to the authorized disclosure.

(3) An authorization for disclosure must contain all of the following items:

1. The taxpayer’s identity (name, address, Taxpayer Identification Number (TIN), or any combination thereof), that enables the IRS to clearly identify the taxpayer

2. The identity of the person or entity to whom disclosure is to be made

3. The type of return (or the specific portion of the return) or return information (including particular data) to be disclosed (use of Tax Class codes by themselves, taken from Document 6209, ADP and Integrated Data Retrieval System (IDRS) Information, does not satisfy this requirement)

Note: Authorization to inspect or receive specific returns and return information will only permit a designee to inspect or receive the specified return and certain return information of the taxpayer directly related to the specified return. The authorization will not permit the designee to inspect or receive returns of other taxpayer or entities, even though the person executing the authorization may have authority to inspect or receive such returns and return information under IRC 6103(e).

Example: A taxpayer is a partner in a partnership. The taxpayer designates a third party to inspect or receive returns or return information related to his 2015 Form 1040, as well as any information returns related to his 2015 Form 1040. In this example the designee will be able to inspect or receive the taxpayer’s 2015 Form 1040, as well as any information returns of the taxpayer directly related to the 2015 Form 1040, including Form 1099, Form W-2 or Form K-1. The designee will need a specific designation, however, to view or receive the partnership returns, even though the taxpayer is generally entitled to view or receive these returns under IRC 6103(e)(1)(C). This designation would be accomplished by listing the specific partnership and Form 1065 on the authorization.

Example: A taxpayer authorized under 6103(e)(1)(D) designates a third party to receive all tax information related to a corporate tax return (e.g. Form 1120) for a specific tax year. The designee is authorized to receive corporate returns and/or return information directly related to that year, including information return transcripts. The designee would need a specific designation, however, to view or receive any returns or return information related to the taxpayer’s individual income tax.

4. The taxable period(s) covered by the return or return information. The periods may be separately stated or when a series of inclusive periods are involved, use of the word "through", "thru", or a hyphen may be used (e.g., 2013-2017 would cover 2013, 2014, 2015, 2016 and 2017), and

Note: For returns where the period is not annual, (e.g., quarterly), all periods within the stated range would be included. For example, for a Form 720, Quarterly Federal Excise Tax Return, or Form 941, Employer’s Quarterly Federal Tax Return, identifying the period as "2012-2013" would cover all quarterly periods in the years 2012 and 2013.

5. The handwritten signature of the taxpayer and the date the authorization was signed

(4) The date an authorization is received 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).

(5) The written authorization from the taxpayer, or other person with a material interest, does not have to be any specific form, although Form 8821, Tax Information Authorization, may be used for this purpose. Form 2848, Power of Attorney and Declaration of Representative, may also be used to meet the requirements, but the Form 2848 may only be used if the designee intends to practice before the IRS and is eligible to practice under Circular 230 and the Conference and Practice Requirements (CFR 601.501 – 601.509). See IRM 11.3.3.4, Distinction Between Disclosure to Designees and the Conference and Practice Requirements .

(6) The taxpayer may always authorize disclosure of his/her return, but may not compel disclosure of return information. If an official authorized in accordance with Delegation Order 11-2 (Rev. 4) (see IRM 1.2.2.12.2) determines that disclosure of return information will seriously impair federal tax administration, the IRS must withhold disclosure of the return information.

(7) A designee of the taxpayer may not execute an IRC 6103(c) consent on behalf of the taxpayer unless he/she is given that specific authority on a Power of Attorney (e.g., Form 2848) under IRC 6103(e)(6). On Form 2848, the taxpayers should check the box to “Authorize disclosure to third parties”.

(8) If there is doubt concerning the authenticity of the signature, refer to your Business Unit for specific policies and guidelines.

(9) A taxpayer may provide consent on the record when they are a party to an administrative or judicial proceeding (such as an examination, collection or appeals hearing). If the proceeding is in a public venue (such as a court or Congressional hearing), secure a copy of a transcript of such proceeding that recorded the consent. See 26 CFR 301.6103(c)-1(e)(1)(i)(C).

(1) In telephone contacts, IRS personnel are generally restricted as to the information they may furnish third parties in the absence of authorization from the taxpayer or other person with a material interest.

(2) Without authorization, only general information such as procedural information or the meaning of a particular bill, notice or letter may be given. The third party should be advised that he/she should obtain an authorization from the taxpayer in order to receive tax information. Depending on the circumstances, it may be desirable to mail the requested return information to the taxpayer’s address of record.

(3) Once a valid third party authorization is received from the taxpayer, the specific tax matters and tax years provided on the consent can be discussed with the third party. Disclosure and security rules must be followed when dealing with third party designees via telephone. Refer to your Business Unit for specific policies and guidelines on acquiring valid oral or written consent and communicating confidential information.

(1) Even though a third party does not have written authority to request and receive tax information of the taxpayer, IRS employees may still accept information offered by third parties.

(1) If a taxpayer is requesting information from their jointly filed return, IRC 6103(c) does not require consent from the other spouse. This includes any item listed on the jointly filed return.

(2) Where a joint return has not been filed and a spouse has been claimed as a dependent on a return, that spouse may not be given information without written authorization from the taxpayer.

(3) IRS employees cannot disclose information relating to the non-requesting spouse that is not attached to the jointly filed return without consent.

(4) Disclosure under IRC 6103(c) is limited to the tax years identified in the request. A valid consent for disclosure must meet all requirements of 6103(c) and its regulation. The mere fact that a request for return information contains signatures of both spouses is insufficient to disclose one spouse’s return information to the other beyond the tax year or years identified in the request. Unless a joint return is involved, employees must obtain an IRC 6103(c) consent prior to discussing or disclosing one spouse’s individual return information to the other spouse. This consent can be oral consent as described in IRM 11.3.3.3.2, Requirements for Oral Authorization.

(1) For IRC 6103(c) consent purposes, generally relatives are third parties and the same rules apply to them as to any third party.

(2) IRC 6103(c) and its regulation do not authorize implied consents. On occasion, taxpayers may bring relatives with them when meeting with the IRS. Their presence does not establish an implied consent by the taxpayer that can be honored by IRS personnel. Employees should obtain an IRC 6103(c) consent prior to discussing confidential tax matters before these individuals, even when the taxpayer is present. This consent can be an oral consent as described in IRM 11.3.3.3.2, Requirements for Oral Authorization, below.

(1) Specific instructions for responding to Congressional inquiries are contained in IRM 11.3.4, Congressional Inquiries.

(1) IRC 6103(e)(6) permits any person described in IRC 6103(e)(1) through (5) and (e)(8) and (9) to authorize, in writing, an attorney in fact to request and receive such information on his or her behalf.

(2) An attorney-in-fact is a private attorney or other individual designated by another person pursuant to a written instrument to act on behalf of that person in the performance of any act or acts described in the written instrument.

(3) The written authorization from the person having a material interest under IRC 6103(e)(1) through (5), (8) or (9) should comply with the requirements for disclosure to attorney-in-fact designees. See IRM 11.3.2.4.13, Attorney-in Fact, for additional information.

(4) Officials authorized in accordance with Delegation Order 11-2 (Rev.4) (see IRM 1.2.2.12.2 and Exhibit 1.2.2-2) must withhold return information requested by an attorney in fact to the extent disclosure would seriously impair federal tax administration.

(1) Generally, return preparers are not entitled to receive returns or return information without written authorization from the taxpayer conforming to the requirements of IRC 6103(c) and 26 CFR 301.6103(c)-1, or pursuant to a power of attorney in conformance with Conference and Practice Requirements.

(2) The fact that a taxpayer has employed a tax return preparer, who is aware of the information provided on the face of the prepared return, is not evidence of the taxpayer’s intent that the preparer later have access to the return. In some instances, the return submitted to the IRS may vary from the one approved by the taxpayer.

(3) When a taxpayer is under examination or investigation and a preparer has not signed the Paid Preparer line, the IRS can permit the alleged preparer of the return to inspect the document to verify a taxpayer’s statement that another person completed his/her return as filed.

(4) By selecting the checkbox on any Individual Master File (IMF) paper or e-filed Form 1040, or any Business Master File return, a taxpayer can designate a return preparer (or other third party) to obtain or discuss certain account-related information for that tax year. This Third Party Designee (Checkbox) Authorization allows discussion of any federal tax issue arising from the processing of the tax return within the life of the authorization and for disclosure of oral and written return information upon request.

(1) Communication to resolve a federal tax matter with a taxpayer who is hearing impaired, deaf, hard of hearing or does not speak English may involve the use of an interpreter. IRS employees should accept a taxpayer’s verbal consent to disclose tax information to an interpreter for help in resolving the federal tax matter. (see IRM 11.3.3.3.2, Requirements for Oral Authorization below and 26 CFR 301.6103(c)-1(c)(2) – Oral Consent regulations)

(2) The taxpayer can verbally approve IRS disclosures to someone accompanying the taxpayer at in-person meetings with the IRS, or participating in a telephone conversation between the taxpayer and the IRS. The verbal consent must meet the requirements of 26 CFR 301.6103(c)-1(c)(2). The taxpayer’s verbal consent must be documented. That documentation must include:

• The fact consent was received (date, location, circumstances)

• The scope of the consent (type of tax or tax matter, tax periods)

(3) Interpreters in non-tax matters, including access to tax information for a non-tax purpose, such as needing a transcript to qualify for loans or other financial matters requires a written consent. Taxpayers can use Form 8821, (or an equivalent), to designate the interpreter as a person who can access confidential tax information for a non-tax purpose.

(1) Treasury Regulation 26 CFR 301.6103(c)-1, authorizes IRS employees to accept a taxpayer's verbal consent to disclose return information to parties assisting the taxpayer in resolving a federal tax matter as long as the IRS employee:

• Obtained from the taxpayer sufficient information to determine the nature and extent of the assistance and the return or return information to be disclosed in order to comply with the taxpayer’s request for assistance.

• Confirmed the identity of both the taxpayer and the designee; and

• Confirmed the date, nature and extent of the information or assistance requested.

(2) The regulation also clarifies that the taxpayer can verbally approve disclosures of return information to a friend, relative, someone accompanying the taxpayer at in-person meetings with the IRS, or someone participating in a telephone conversation between the taxpayer and IRS. It is not necessary for the taxpayer to stay in the room or on the telephone after giving a verbal authorization to disclose his/her return information, nor does the designee have to be present or on the telephone when the taxpayer gives consent.

(3) Details of the oral consent should be recorded on a history sheet or history screen whenever possible. Remember that the IRS must take reasonable steps to confirm the identity of the taxpayer and the designee before disclosing any return information to the third party. The disclosure of return information must be limited to the information covered in the verbal consent and disclosure can only be made to third parties helping taxpayers resolve a federal tax matter. A written consent that meets all requirements of the regulation is still required when the issue is not tax related. Each operating and functional division is responsible for determining how it incorporates the verbal authorization regulation into its procedures. Verbal requests or consents for disclosure do not take the place of a Power of Attorney authorizing the third party to represent the taxpayer before the IRS. A proper Power of Attorney must be secured. Practice before the IRS is still governed by the regulations at 26 CFR 601.501 through 26 CFR 601.509 and Treasury Department Circular No. 230, Regulations Governing Practice before the Internal Revenue Service.

(4) IRC 6103(c) and its regulation do not authorize or recognize implied consents. See IRM 11.3.3.2.5, Disclosure to Other Relatives for additional information on implied consents.