The Internal Revenue Service (IRS) engages in information sharing programs with federal, state, and local government agencies. These programs aim to enhance tax administration, improve compliance, and strengthen collaboration among various government entities.
IRS Information Sharing Programs
The IRS has established several information sharing programs to facilitate the exchange of taxpayer data and leverage resources for effective tax administration. These programs include:
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Federal-State-Local Government Information Sharing: The IRS collaborates with state and local governments to share audit results, federal individual and business return information, and employment tax data. This information sharing enhances tax administration by identifying non-compliance, improving outreach efforts, and supporting joint initiatives.
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Safeguards Program: The Safeguards Program ensures the privacy and confidentiality of taxpayer data shared with other government agencies. The program establishes strict guidelines and protocols for accessing and using taxpayer information, safeguarding it from unauthorized disclosure or misuse.
State Information Sharing
The IRS’s state partnering program fosters collaboration between the IRS and state taxing authorities, such as departments of revenue and state workforce agencies. Through this program, the IRS and state agencies share a variety of data, including:
- Audit results
- Federal individual and business return information
- Employment tax information
This data sharing enables states to improve their tax administration processes, identify potential non-compliance, and enhance their enforcement efforts.
Benefits of IRS Information Sharing
The IRS’s information sharing programs provide numerous benefits, including:
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Improved Tax Compliance: By sharing information with other government agencies, the IRS can identify taxpayers who may be underreporting their income or engaging in other forms of non-compliance. This collaboration helps ensure that all taxpayers fulfill their tax obligations fairly and equitably.
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Enhanced Tax Administration: The exchange of data among government agencies streamlines tax administration processes, reduces redundancies, and allows for more efficient use of resources. This collaboration enables the IRS and state agencies to focus their efforts on areas of greatest need.
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Strengthened Collaboration: Information sharing fosters stronger relationships and collaboration among government agencies. By working together, the IRS and state agencies can develop joint initiatives, share best practices, and improve the overall effectiveness of tax administration.
The IRS’s information sharing programs play a crucial role in enhancing tax administration, improving compliance, and strengthening collaboration among government agencies. These programs facilitate the exchange of taxpayer data, leveraging resources, and supporting joint initiatives to ensure a fair and efficient tax system.
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FAQ
Do states have access to my federal tax return?
Does the IRS have anything to do with state taxes?
Can the IRS share your tax information?
Can you get audited by state and not federal?
Does the IRS share tax information with state and local authorities?
The IRS is authorized by IRC section 6103 (d) to disclose federal tax information to state and local tax authorities for tax administration purposes. IRS and state and local agencies share data such as audit results, federal individual and business return information, and employment tax information.
What information does the IRS share with other states?
IRS and state and local agencies share data such as audit results, federal individual and business return information, and employment tax information. (Separate agreements permit states to disclose taxpayer information to other states, but those were not the subject of this FOIA request.)
How do IRS & state agencies share data with each other?
IRS and state/local agencies share data with each other through a variety of ongoing initiatives. The information includes: Employment tax information. For additional information about the Fed/State program, please email [email protected].
Can the IRS share tax information with a governmental agency?
Internal Revenue Code (IRC) Section 6103 authorizes the IRS to share tax information by entering into agreements with governmental agencies for tax administration purposes. Comparable laws allow agencies to share their information with the IRS.