(16)00

(16)10

General

In the interest of the internal management of the Government, and to assist Federal agencies in carrying out their responsibilities under the law, the President has from time to time approved by Executive Order certain Treasury Decisions which permit such agencies to examine certain classes of returns, covered by section 301.6103(a)-1, 26 CFR. on a general inspection basis. Inspection of these returns is normally made in the National Office. However, from time to time Directors may receive authorization from the National Office to permit inspection of returns by designated representatives of these agencies.

(16)20 Inspection of Income Tax Returns by the Department of Commerce

The Department of Commerce is authorized under Treas ury Decision 6547 to inspect income tax returns filed under the provisions of the Internal Revenue Code of 1954. The inspection of such returns may be made by any officer or employee of the Department of Commerce duly au thorized by the Secretary of Commerce to make such inspection upon written notice by the Secretary of Commerce to the Commissioner of Internal Revenue stating the classes of returns which it is desired to inspect. The Commissioner may furnish, or may designate any officer or employee of the Service to furnish, the Department of Commerce with any data on such returns or may make the returns available for inspection and the taking of such data as the Secretary of Commerce may designate. Any information thus obtained by the Department of Commerce shall be held confidential except that it may be published or disclosed in statistical form, provided such publication does not disclose, directly or indirectly, the name or address of any taxpayer. See Regulations 301.6103 (a)-104.

(16)30 Inspection of Income Tax Returns of Corporations by the Federal Trade Commission

The Federal Trade Commission is authorized under Treasury Decision 6545 to inspect the income tax returns of corporations made under the Internal Revenue Code of 1954. The inspection of such returns may be made by any officer or employee of the Federal Trade Commission duly authorized by the Chairman of the Commission to make such inspection. Upon written notice by the Chairman to the Commisioner of Internal Revenue, any officer or employee of the Service may be authorized by the Commissioner to furnish the Federal Trade Commission with any data on such returns or to make the returns available for inspection and the taking of such data as the Chairman of the Commission may designate. Any information thus obtained shall be held confidential except that it may be disclosed in statistical form, provided such publication does not disclose, directly or indirectly, the name or address of any taxpayer. See Regulations 301.6103(a)–106.

(16)40 Inspection of Income Tax Returns by the Renegotiation Board

Under Treasury Decision 6544 income tax returns made under the Internal Revenue Code of 1954 shall be open to inspection by The Renegotiation Board. The inspection of such returns may be made by any officer or employee of the Board duly authorized by the Chairman of the Board to make such inspection. Upon written notice by the Chairman to the Commissioner of Internal Revenue stating the classes of returns which it is desired to inspect, the Commissioner may authorize any officer or employee of the Service to furnish The Renegotiation Board with any data on such returns, or to make the returns available for inspection and the taking of such data as the Chairman of the Board may designate. Any information thus obtained shall be held confidential except that it may be published or disclosed in statistical form, provided such publication does not disclose, directly or indirectly, the name or address of any taxpayer. See Regulations 301.6103(a)-105.

(16)50 Inspection of Transcript Cards and

Corporate and Individual Income Tax
Returns by the Securities and Exchange
Commission

Treasury Decision 6374 authorizes the Securities and Exchange Commission to inspect corporate and individual income tax returns for taxable years ending after December 31, 1956, and statistical transcript cards prepared by the Service from income tax returns of corporations made for taxable years beginning after December 31, 1953, and ending after August 16, 1954. Upon written notice by the Chairman of the Securities and Exchange Commission to the Commissioner of Internal Revenue, stating the type of statistical transcript cards or income tax returns of which inspection is desired, the Commissioner may authorize any officer or employee of the Service to furnish the Securities and Exchange Commission with any data on such cards or returns or may make them available for inspection and the taking of such data as the Chairman of the Securities and Exchange Commission may designate. Any information thus obtained shall be held confidential except to the extent that it shall be published or disclosed in statistical form, provided such publication shall not disclose, directly or indirectly, the name or address of any taxpayer. See Regulations 301.6103(a)–102.

((16)61 AUTHORITY—Cont.)

ual income tax returns and the retained portion of any employer's return of withheld social security taxes by any duly authorized official or employee of the Department of Health, Education, and Welfare, in connection with the administration of Title II of the Social Security Act, as amended (42 U.S.C. Ch. 7), provided written request is made in the form and manner outlined below. See Regulations 301.6103(a)-100, and Delegation Order No. 15 (revised).

(16)62

APPLICATION FOR INSPECTION

(1) Each application for inspection, or for copies, or certified copies, of the returns shall be addressed to the Director, and may be made on Form OAR-7057, or similar written application. Each application will indicate: (a) The information desired.

(b) That the information is desired and will be used solely in connection with the administration of the provisions of Title II of the Social Security Act, as amended (42 U.S.C. Ch. 7).

(c) That no information acquired will be used or disclosed in any manner except as may be necessary in connection with the administration of Title II of the Social Security Act, as amended, and the regulations issued under such Title II.

(d) The name and title of the person designated to make the inspection or receive copies.

(2) Each application shall be signed by an officer or employee duly authorized to sign such applications, and by the officer or employee designated to make the inspection. The fact that an officer's name or employee's name is signed on the application shall be considered sufficient evidence that he has been duly authorized to sign such application.

Semi-annual reports to the National Office of the number of requests (letters) received and returns inspected by representatives of the Social Security Administration under 26 CFR 301.6103(a)-100 shall be submitted. Memorandum reports for the period January 1 through June 30, and for every six-month period thereafter, should be submitted within 30 days after the end of the reporting period to the Assistant Commissioner (Compliance), Attention: CP:D. Negative reports are also required. Report Symbol NO CP-146 is assigned. (See also Section (13) 60 of this Handbook.)

(16)70 Inspection of Returns by the Advisory Commission on Intergovernmental Relations

(1) The Advisory Commission on Intergovernmental Relations is authorized under Treasury Decision 6570, Regulations 301.6103(a)-103, to inspect returns of income tax and certain other taxes for the purpose of making studies and investigations in connection with the performance of its functions. The inspection may be made by any member or employee of the Commission duly authorized by the Chairman to make such inspection. The request for inspection shall be in writing from the Chairman to the Secretary of the Treasury and state the kinds of returns which it is desired to inspect. The Secretary may furnish the Chairman with any data on such returns or may make the returns available for inspection and the taking of such data as the Chairman may designate.

(2) Such data shall be furnished, or such returns shall be made available for inspection, in an office of the Internal Revenue Service.

(3) Any information obtained shall be held confidential except that it may be published or disclosed in statistical form provided such publication does not disclose, directly or indirectly, the name or address of any taxpayer.

(1) Treasury Decision 6757 provides that any infor mation return made by a commercial bank with respect to loans and commitments to foreign obligors under IRC 6011(d)(2), as added by section 3(a) of the Interest Equalization Tax Act, shall be open to inspection by the Board of Governors of the Federal Reserve System and the Federal Reserve Banks. Such inspection may be made by

(a) a member or employee of the Board of Governors of the Federal Reserve System duly authorized by the Board, or

(b) an officer or employee of a Federal Reserve Bank duly authorized by the president of such bank. (2) Upon written notice by the Board of Governors

of the Federal Reserve System or the president of a Federal Reserve Bank to the Secretary of the Treasury stating that it is desired to inspect information returns made by commercial banks with respect to loans and commitments to foreign obligors, under IRC 6011(d)(2), the Secretary of the Treasury, or any officer or employee of the Department of the Treasury with the approval of the Secretary, may furnish the Board or the Bank with any data on such returns or make the returns available for inspection and the taking of such data as the Board or the president of the Bank may designate.

(3) Such data may be furnished or such returns may be made available for inspection. in the office of the Board of Governors of the Federal Reserve System or in the offices of the Federal Reserve Bank, as the case may be. (4) Any information thus obtained shall be held confidential except that it may be published or disclosed in statistical form provided such publication does not disclose, directly or indirectly, the name or address of any person filing such a return. See Regulations 301.6103 (a)-107.

It has been the established practice of the Service to follow a strict construction of the law and regulations applicable to disclosure of official records and information furnished to or obtained by the Internal Revenue Service for the purpose of the administration of the internal revenue laws. (See Policy Statement P-1-185.)

(17)20 Filing Records and Information as to Current Addresses of Taxpayers

(17)21 GENERAL

Policy statement P-1-187 provides general administrative guidelines for implementing IRC 6103(f). This Chapter provides more detailed instructions with respect to handling requests for address information from the records of income tax returns filed with the Service.

(17) 22 NEWS MEDIA INQUIRIES

Every request for filing information made by news media will be honored. However, the requester should be asked to submit a written list of taxpayers on whom information is desired.

(17) 23

COMMERCIAL CONCERNS AND OTHERS

(1) If the requests ask whether a named person filed an income tax return in a designated district for a particular taxable year, the filing information should be given. However, if a "no record" is given, the inquirer should be advised that the taxpayer may have filed a return under another name, address, or in another district.

(2) Except as noted in (3) below, if the request is for address information, the requester should be advised that the request must be denied because, if the Service were to furnish such information it would be regarded as an unwarranted invasion of privacy concerning information furnished to the Service for tax administration purposes. In addition, the requester shall be informed that the processing of such requests would cause a serious disruption to the administration of the tax laws.

(3) In cases where a humane reason is involved, for example, a relative trying to locate another to notify him of an illness or death in the family, the Service will try to help locate missing persons by searching its records of persons who have filed income tax returns. If the Service has an address recorded on the Individual Master File, we will offer to forward a letter to the missing person without disclosing the address to the inquirer. This will ensure that the taxpayer's right to privacy is respected in the event that he does not want his address to become known.

(17) 24 STATE AND LOCAL OFFICIALS

(1) State tax officials designated by the Governor to receive tax information may be furnished the addresses of persons they are attempting to locate for State or local tax administration purposes. Local tax officials requesting

address information should be advised to direct their requests to their State tax officials, who may obtain the information and supply it to local tax officials if the purpose of the request is for tax administration purposes only.

(2) In supplying address information, the State tax officials authorized by the Governor to receive such information should be advised that the information is being furnished for tax administration purposes and should not be used for any other purpose.

(3) Pursuant to Public Law 90-248. effective January 1. 1969, local welfare agencies will be furnished information by the Service regarding the whereabouts of runaway parents as required by Section 410 of the Social Security Act, as amended by this Public Law. This is a National Office project and requests from such officials will be channeled to the Service by the welfare agencies through the Department of Health, Education, and Welfare.

(4) Address information may be furnished to State and local prosecutors or law enforcement officials if the furnishing of such information will assist in our narcotic, organized crime, or other special enforcement programs. This authority to disclose may be delegated to any responsible Service employee who, because of his position or assignment, would exercise the necessary discretion. In each case, the file should be documented to show the date, to whom, and for what purpose the address was furnished.

(5) Generally, other requests by State and local officials for address information should not be honored. If exceptional circumstances are involved, the request should be referred to the National Office, Attention: CP:D, for reply.

((17)27 CONGRESSIONAL INQUIRIES—Cont.)

in a manner consistent with the authority or prohibitions contained herein. Decisions as to whether to offer to forward a letter, furnish the address, or to decline to furnish the information should be made accordingly. For example, we should not ask a Congressman to have the constituent write in if we would make the information available to the constituent; neither should we supply address informa tion if it is obvious from the incoming letter that the constituent who contracted the Congressman has a commercial purpose.

Requests in emergency situations must be decided on the basis of best judgment. For example, when a member of a family is critically ill and not expected to live but a short time, the offer to forward a letter would not be a satisfactory response, under the circumstances. In those cases. District Directors, Assistant District Directors. Service Center Directors and Assistant Service Center Directors are authorized to furnish the address information to a Congressman or a close member of the family. However, in these cases the decision must be made personally by the official named above.

ment of a fee of $1 for each 100 names or fraction thereof in the copy so requested.

(2) There is no authorization in IRC 4775 for the furnishing of addresses. It should also be noted that IRC 4775 is couched in discretionary terms, and says only this: "The Secretary or any officer or employee designated by him is authorized to furnish . . ." This language must be construed to mean that it is discretionary with the Secretary or his delegate whether to furnish such a list of names at all.

(3) The "Controlled Substances Act", Public Law 91-513, repealed Code sections 4701-4775, effective May 1, 1971. On that date, the Bureau of Narcotics and Dangerous Drugs (BNDD), Department of Justice, became responsible for administering the registration and enforcement provisions of that law.

We think it will be helpful to all concerned to be aware of the stated intent of Congress in repealing IRC 6107. Therefore, a quote from Senate Report 1501, 90th Congress (1968), follows: "Section 203 of title II-This section provides for the repeal of section 6107 of the Internal Revenue Code of 1954 relating to disclosure of the identity of persons paying special (occupational) tax which was subjected to criticism in the three cases handed down by the Supreme Court on January 29, 1968. The repeal of this section should make it completely clear that it is not the desire or intent of the Congress that the entire system of Federal taxation can be rendered impotent or ineffectual because a State or local jurisdiction has a law rendering aspects of the activity illegal. The Federal taxing power is of such fundamental importance that it is difficult to conceive that it was the intent of the framers of the Constitution that the act of a State or local government could thwart the effective operation of the internal revenue laws of the United States. Since the section no longer serves any useful purpose, and since it now jeopardizes the effective operation of the internal revenue laws, it should be repealed."

(17)52

REQUESTS FROM THE GENERAL PUBLIC

(1) The requirement of IRC 6107 that a list of special taxpayers be maintained for public inspection has been repealed by Public Law 90-618. Such lists are, therefore, no longer available for public inspection.

(2) Consistent with Public Law 90-618, copies of Forms 11, 11-B, 11-C, and 730, should not be furnished without express authorization from the Commissioner. This, however, does not affect authorization to furnish copies to the taxpayer who made the return. (See Delegation Order No. 86 (revised) in this respect.)

(3) Requests under the Freedom of Information Act for information of the type formerly contained in the pub

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