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Catalog of Federal Domestic Assistance

Program Descriptions

21.004:  Exchange of Federal Tax Information With State Tax Agencies

Popular Name:  Agreement on Coordination of Tax Administration

Objectives:  To increase tax revenues and taxpayer compliance, and to reduce duplicate resource expenditures.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

21.004 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  State tax agencies, U.S. Territories, and Municipalities with populations in excess of 250,000 that impose taxes on income or wages.

Beneficiary Eligibility:  State Governments, U.S. Territories, Municipal Governments.

Credentials/Documentation:  Agency head must enter into Agreement with the Commissioner of IRS regarding disclosure.

21.004 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  None. This program is excluded from coverage under E.O. 12372.

Application Procedure:  Agency Officials should send a written request to the District Director, Internal Revenue Service, Attention: Disclosure Officer, in their area jurisdictions. Addresses can be found in local directories.

Award Procedure:  Not applicable.

Deadlines:  None.

Range of Approval/Disapproval Time:  Not applicable.

Appeals:  Not applicable.

Renewals:  Not applicable.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Individual Tax Models used by State tax agencies in determining their rate structure; Individual/Business Master File Tax Data Extracts; Individual/Business Returns Transaction File Extracts; Information Returns Master File Extracts.

Range and Average of Financial Assistance:  Not applicable.

21.004 RELATED PROGRAMS:

21.004 PROGRAM ACCOMPLISHMENTS:

21.004 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY

Type of Assistance:  Provision of Specialized Services.

Obligations:  (Support and Services) FY 99 $0; FY 00 est $0; and FY 01 est $0. In 1994, IRS decided to waive the fees charged to State and local agencies. These agencies can obtain tax data extract information through various IRS disclosure offices for free.

Budget Account Number:  20-0912-0-1-803.

Authorization:  Internal Revenue Code, as amended, 26 U.S.C. 6103(d).

Regulations, Guidelines, and Literature:  Internal Revenue Manual 1272, Disclosure of Official Information Handbook, Chapter 33; Document 6501, Federal/State Exchange Program; (Official Use Only) Document 6724 Consolidated Listing of Tax Information Exchanged between State Agencies and the Internal Revenues Services for tax Administration purposes. Publication 1075, Tax Information Security Guidelines.

21.004 INFO CONTACTS:

Regional or Local Office:  District Director, Internal Revenue Service, Attention: Disclosure Officer, in all area jurisdictions.

Headquarters Office:  Director, Governmental Liaison and Disclosure, complete addresses can be found in local directories, Internal Revenue Service, Room 7331, 1111 Constitution Ave., NW., Washington, DC 20224. Phone: (202) 622-6200. Use the same number for FTS.

(See Appendix IV for more contact info.)

21.004 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  This program has no statutory formula nor matching requirement.

Length and Time Phasing of Assistance:  Not applicable.

Uses and Use Restrictions:  State tax agencies may use the tax data provided for justified tax administration purposes only, pursuant to Internal Revenue Code (IRC) Section 6103. Any unlawful disclosure of Federal tax data subjects the violator to both criminal and civil penalties specified in IRC Sections 7213 and 7431.

21.004 POST ASSISTANCE REQUIREMENTS:

Reports:  Agency Officials are required to submit a Safeguard Procedures Report within 30 days after receipt of Federal tax data, and an annual Safeguard Activity Report.

Audits:  On-site safeguard reviews will be conducted by IRS personnel as needed to ensure confidentiality and security of Federal tax data, with a minimum requirement of a review once every five years.

Records:  Agencies are required to maintain a system of standardized records of requests for inspection or disclosure.