IRS Updates Guidance on Disclosure of Tax Information of Government Employees
The IRS recently released Revenue Ruling 2022-7, updating the rules for the tax return disclosure restrictions for government employees in accordance with the Taxpayer First Act of 2019.
The new ruling updates the guidance in Rev. Rul. 2004-53 by clarifying that government employees who receive returns or return information pursuant to disclosures under Section 6103(c) of the Tax Code, like all designees who receive returns or return information pursuant to taxpayer consent, are subject to the disclosure restrictions of Section 6103(a).
The ruling also states that government employees who receive returns or return information pursuant to disclosures under Section 6103(k)(6) or (e), other than Section 6103(e)(1)(D)(iii) (relating to certain shareholders), are not subject to the disclosure restrictions of Section 6103(a) with regard to the returns or return information received.
The IRS notes that generally, Section 6103 provides that tax returns and tax return information are confidential and may not be disclosed except as expressly authorized by the Tax Code.