- TO:
- ALL COUNTY OFFICES
- FROM:
- JANEL R. LUCK, DIRECTOR
- SUBJECT:
- IRS YEARLY MATCH OF 2007 TAX INFORMATION
DISCUSSION:
The IRS yearly match with 2007 tax data is now available. Refer to Income Maintenance Memorandum IM-87, September 27, 2006, which discusses the Income Eligibility Verification System (IVES) matches with the Internal Revenue Service (IRS). The IRS Income Code chart is attached to this memorandum.
Information from the IRS information exchange is displayed on the IIRS screens for further investigation. DO NOT PRINT the IIRS screen for use in the investigation. Any notes written from the IIRS data are NOT to be kept in the case folder and MUST be destroyed after use.
All information reported by IRS is considered confidential. Access to federal tax information must be strictly on a “need to know” basis. Copies of letters containing information on unearned income reported by IRS may not be maintained in case records or shared with any one except:
- The participant,
- The participant’s representative as authorized by the participant,
- The Office Support Assistant who is responsible for maintaining the locked file of IEV-6 and IM-6 forms,
- The supervisor,
- The third party that reported the income.
When the IRS data is verified by a third party, the verification is to be recorded in the case file. Once the third party verification is received, normal confidentiality rules apply as the information is now normal case information, not IRS information and must not be identified as IRS information in any way. Eligibility specialists must treat the information in the ways noted below in order to maintain IRS/FSD confidentiality rules:
- The IRS notification the eligibility specialist receives:
- For FAMIS Cases -- The alert notifying the eligibility specialist that IRS information needs to be reviewed does not contain any IRS income amounts or sources, and is not subject to IRS confidentiality requirements.
- For Legacy Cases -- The IRS information made available to the eligibility specialist via e-mail does not contain any IRS income amounts or sources and is not subject to IRS confidentiality requirements.
- The IIRS screen contains confidential information. Do not print the IIRS screen and do not discuss the IRS data with anyone except those listed above.
- The copies of the IEV-6 and IM-6 letters are considered confidential and must be kept locked in the county office until the income investigation is completed, and then destroyed. DO NOT KEEP COPIES OF THE IEV-6 or IM-6 IN THE CASE RECORD.
- The system-generated IEV-80 does not contain any IRS income amounts or sources and is not subject to IRS confidentiality requirements. This form may be filed in the case record.
Failure to comply with the Internal Revenue Code for the unauthorized disclosure of tax return information can result in the following civil and criminal penalties and disciplinary action by the Family Support Division (FSD).
- The Internal Revenue Code (IRC) section 7213 (a) makes the unauthorized disclosure of Federal tax return information a felony punishable by a $5000 fine, up to five years imprisonment or both, together with the costs of prosecution.
- Section 7431 of the IRC permits a taxpayer to bring suit against individual staff for civil and punitive damage in U.S. District Court for willful disclosure or gross negligence for unauthorized disclosures even after FSD employment terminates.
- IRC Section 6103 prohibits a person from willfully disclosing any return information except as authorized by Title 26 of the United States Code.
- The 1997 Taxpayer Browsing Protection Act provides a penalty for the willful, unauthorized access or inspection of federal tax information, both electronic and paper formats. Upon conviction, the criminal misdemeanor penalty is a fine of up to $1000 and/or imprisonment up to one year. Civil damages for each finding of liability are up to $1000 or actual damages, whichever is greater. If gross negligence or willful unauthorized inspection or disclosure exists, punitive damages may be assessed.
NECESSARY ACTION:
- Review this material with all staff responsible for handling IRS matches.
