|N T E R N AL REVENU E S E R V | C E
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DiSC OSure
Awareness





IIltrCºluiction
The safeguarding of tax return information is
critically important to the Internal Revenue Service.
As an IRS employee, you are responsible for
protecting tax returns and return information.
Internal Revenue Code (Code) Section 6103
($6103) contains provisions for protecting and
disclosing confidential returns and return
information. The provisions affect all Internal
Revenue Service employees, including the Office
of the Chief Counsel.
§6103 prohibits all employees from disclosing
federal returns or return information except as
provided for in the statute. You are responsible for
understanding and applying the provisions of $6103
in the performance of your job.
This guide provides basic information about the
major provisions under $6103 for protecting and
disclosing confidential taxinformation. It also covers
the civil and criminal penalties for making
unauthorized accesses or disclosures.
The General Dulle
§6103 provides that all returns and return
information are confidential. No Current or former
IRS employee may access or disclose returns or
return information except as specifically authorized
under provisions of the Code.
| Definition of Deturn
Return means any tax or information return,
estimated tax declaration, or refund claim (including
amendments, supplements, supporting schedules,
attachments or lists) required by or permitted under
the Code which is filed with the IRS by, on behalf
of, or with respect to any person. Examples of
returns include forms filed on paperor electronically,
1040, 941, 1099, 1120 and W-2.
Definition Of Leturn Inſorination
The definition of return information is very broad.
Return information includes, but is not limited to,
the following:

VAny information, other than the taxpayer's return
itself, that IRS has obtained from any source or
developed through any means that relates to the
potential liability of any person under the Code
for any tax, penalty, interest, fine, forfeiture, or
other imposition or offense.
V Information extracted from a return, including
names of dependents, or the location of busi-
neSS.
VThe taxpayer's name, mailing address, identifi-
cation number, including social security number
or employer identification number.
VInformation collected by the IRS about the tax af-
fairs of any person, regardless of whether tax-
payer identifiers like name, address, and identi-
fication number have been deleted.
VInformation on whether a return was, is being, or
will be examined or subject to other investiga-
tion or processing.
V|nformation contained on transcripts of accounts,
including TXMOD, IMFOL, IRP and on computer
systems, including IDRS.
V Fact of filing a return or fact of examination, in-
vestigation or collection activity, or balance due
account information.
A DiSCIOSuare Strategy for Safegularºling Tax
Infºrmation
Good disclosure decisions are made with the CAP
process. Be sure that the Code (C) provides for
the disclosure; that you have delegated authority
(A) to make the disclosure; and that you follow the
appropriate procedures (P) when making the
disclosure.
Properly authenticate the
identity orintended recipient
of taxinformation and ensure
they are authorized to receive
the information.
Consult |RM 11.3
(Disclosure of Official



| Information), Delegation Order 11-2, and yourfunctional
guidance for specific information and procedures
Concerning disclosure situations you encounter.
Contact your local Disclosure Office if you receive a
request for records under the Freedom of Information
Act (FOIA).
Upon receipt of a subpoena to testify or produce
records in a court proceeding, immediately contact
your manager and the Disclosure Office. Disclosure
personnel will guide you with respect to the
appropriate actions you should take.
The provisions of $6103 provide rules and
circumstances when confidential information may be
disclosed to other Federal, state or local agencies.
Contact your manager or Disclosure Office for more
information
§6103 also includes specific provisions for disclosing
returns or return information to third parties, to
taxpayers who show that they have amaterial interest
in the return or return information, to other agencies
including other Federal, state or local agencies, as
well as in certain court proceedings. There are legal
requirements that IRS maintain records of certain
disclosures of taxpayer returns or return information.
Other Sensitive Informatiºn Drotected by
the Drivacy ACT
In addition to tax information, IRS employees may
**, *, also be responsible for information
Zºº protected by the Privacy Act. Privacy
g Act protected information includes
S. s -- employee information such as
Q-9) 2. names, addresses, social security
ºs: numbers, evaluative material, time and
attendance information, etc. This sensitive
information is confidential by law and there are
penalties for wrongful disclosure. The precautions for
handling tax information also apply to the handling of
Privoy Act protected information.
Disclosure (DInline DeSCIICPS
The Disclosure Reference Page is available on-line.
Enter “disclosure" in the search engine on the IRWeb
HomePage then click on the Keyword Featured Site.

The Disclosure Reference Page features links to a
topical index, the Disclosure of Official Information
manual, local Disclosure office Contact information,
and other resources designed to help all IRS
employees.
Refer all media contacts to your manager and your
local Field Media Relations Specialist located at
http://www.swd. Wrirs.gov/netcom/phone list.htm
Refer to the monthly Disclosure Hot Topic link on
the Disclosure Reference Page.
Issues concerning procurements or contracts
involving the disclosure of tax or Privacy Act
protected information should be referred to Mission
Assurance & Security Services (MA&SS). Formore
information visit the MA & SS SBU Contracts
Program Website at http://mass-web.irs.gov/Privacy/
Contracts.asp.
When in doubt, Consult the Disclosure Reference
Web Page, contact your manager or your Disclosure
Office before disclosing confidential tax information.
“When in doubt - check it out before you give it
out!”
Denalties %% ºn
All employees must be sº *º
aware that they may (Si 23-º-A
not access or disclose Ö
confidential tax information º
unless the access or disclosure is
authorized under a provision of the Code. Making a
willful unauthorized disclosure or access (UNAX)
could subject the employee to criminal penalties
under $7213 and $7213A (UNAX). In addition, a
taxpayer may seek civil damages under S7431
against the United States.
* * * >
Criminal Penalties: Under $7213, willful
unauthorized disclosure of returns or return
information by an employee or former employee is
afelony. The penalty is a maximum $5,000 fine or a
maximum of five (5) years in jail or both plus the
costs of prosecution. Upon conviction, an employee
will also be dismissed from employment.

Under $7213A, willful unauthorized access or
inspection (UNAX) of taxpayerrecords, including hard
copy and computerized information, by an employee
orformer employee is a misdemeanor. The penalty
is a fine of up to $1,000 and/or one year in prison
and dismissal from employment.
Civil Penalties: Under S7431, any taxpayer
Whose return or return information has been
knowingly or negligently inspected or disclosed
by an employee in violation of $6103 may seek
civil damages. This provision allows a taxpayer
to institute action in district court for damages
where there is unauthorized inspection or
disclosure of a return or return information.
If the Court finds there has been an unauthorized
inspection or disclosure of a return or return
information the taxpayer may receive damages
of the greater of $1,000 for each act of
unauthorized access or disclosure, or actual
damages sustained, plus punitive damages (in
the case of willful or gross negligence), plus costs
of the action (which may include attorney's fees).
There is no liability under $7431 if the disclosure
of the return or return information was the result
of a good faith but erroneous interpretation of
$6103.
Alglitional DiscOSuare Guidelines
Protect confidential tax and Privacy Act protected
material.
• Follow appropriate physical and information
security guidelines at all times.
• Do not put documents containing confidential
tax information in recycle bins.

• Do not leave confidential information on
computer screens when you are away from
the computer workstation.
• Protect laptop computers and removable
media that contain confidential tax
information.
• Secure all sensitive information by encrypting
any SBU data stored on your computer or
removable media and using Secure
Messaging to send SBU data electronically.
Discuss confidential tax matters only with those
IRS personnel who have a need to know for a
tax administration purpose. Do not discuss
confidential tax matters on coffee breaks, at
home, or Outside the Office.
Observe the clean desk policy. Be aware of |
security in your immediate office area. Do not
leave confidential information unattended on your
desk.
Prepare all correspondence carefully. Make sure
to completely over-write the information on pattern
letters. Review all correspondence before sending
to ensure that all enclosed materials (reports, | º
attachments, schedules and other inserts) are
intended for the recipient.
Use a document receipt to verify that confidential
material has been properly received when
information is mailed Or hand carried. Use double
sealed envelopes when mailing confidential tax
information or take other precautions to prevent
viewing of actual content.
Follow secure procedures when emailing, leaving |
voice mail, faxing or using wireless, cellular
phones or other devices. Guidance is available
in the Disclosure of Official information manual
as follows:
• Emailing — IRM 11.3.1.13.2
• Faxing – IRM 11.3.1.10
• Voice Mail – IRM 11.3.1.13.1 and IRM
11.3.2.6.1


• Cell Phone, Cordless and Wireless
Communications — |RM 11.3.2.6.2
When working with a representative who is
practicing before the Service, make sure that
there is a valid power of attorney (POA) on file.
All discussions of tax matters must be held with
an individual specifically named on the POA.
Report all unintentional or inadvertent
unauthorized disclosures of tax or Privacy Act
information to your manager, using the Form
10848, Report of Inadvertent Disclosure of Tax or
Privacy Act Information.
Report willful unauthorized disclosures
immediately to your local TIGTA office, or call
the TIGTA Hotline at 1-800-366-4484.
When in doubt, Consult the Disclosure Reference
Web Page, contact your manager or your
Disclosure Office before disclosing confidential
tax information.
"WHEN IN DOUgſ.
... CHECK ſ OUT
£EFORE YOU GIVE ſ OUT!"
When in doubt, before disclosing confidential tax
information:
• Consult the Disclosure Reference Web Page
Or
• Contact your manager or local Disclosure
Office
miſſil
8469
Doc. 6986 (7–2006)
§ IRS 3. NO. 14784D