IRS Match and Safeguard

0165.005.00 Destruction of Federal Tax Information

IM-29 April 9, 2015

When destroying federal tax information (FTI), received as a result of the IRS Match, you must take the following actions:

  1. Complete the IRS Notice Log for destruction of IRS material showing:
    • the date the document was received
    • the individual to whom the information was given
    • the destruction date; and
    • the method of destruction
  2. Destroy the copies of the IEV-06 letters after the Authorization for Release of Information (IM-6) signed by the participant is sent with the verification request.  Upon return of the IM-6 by the participant, enter the date returned on the IRS Notice Log. When the verification is received back in the FSD office, destroy any attached IM-6 produced as a result of an IRS match. Upon destruction of the IEV-06, enter the date and method of destruction on the IRS Notice Log.
  3. Destroy all FTI information locally (i.e.: in the office); shredding manually or by a contracted service, supervised by designated staff.

The following precautions should be observed when destroying FTI:

    • Shredding precautions: to make reconstruction more difficult, the paper should be inserted so that lines of print are perpendicular to the cutting line. The paper should be shredded to effect 5/16 inch wide or smaller strips. If shredding is part of the overall destruction of FTI, strips can in effect be set at the industry standard (currently ½”). However, when deviating from IRS’ 5/16” requirement, FTI as long as it is in this condition (i.e., strips larger than 5/16”), must be safeguarded until it reaches the stage where it is rendered unreadable.
    • If the office uses a shredding contract and disposes of FTI in this manner, the office must maintain FTI in the locked file cabinet until the shredding contractor arrives on site.  At that time, a designated staff person must retrieve the FTI and place it in the shredding bin.  The designated staff person must then observe the shredding of the data contained in that bin.  Upon completion of the shredding, the date must be entered in the IRS Notice log. NOTE:  Hand tearing, recycling, or burning information in a landfill are unacceptable methods of disposal.

FSD staff must take a training course in the Electronic Learning Center (ELC) at the time of hire and annually thereafter to ensure they are aware of federal regulations governing the handling of IRS confidential information.