IRS Requirements for Tribes Accessing Federal Tax Information
DATE: July 5, 2019
TO: State and Tribal IV-D Directors
SUBJECT: IRS Requirements for Tribes Accessing Federal Tax Information
The IRS Office of Safeguards recently released requirements (below) regarding tribal IV-D agencies accessing federal tax information (FTI) through a state IV-D agency, which it plans to publish as part of its review and reporting processes in the near future. Please note that these requirements do not impact the IRS Safeguards’ Use of FTI for Child Support Enforcement Purposes Matrix and the options available to tribal IV-D agencies that are not under a contract with a state child support agency regarding FTI access.
We anticipate that affected states and tribes will have questions about these new requirements. IRS will host a conference call to discuss the requirements and address your questions. We’ll notify you when IRS shares more information about the call.
IRS Requirements – Child Support Enforcement Agency (CSEA) Contracts with Tribal IV-D Entities and Authorized Re-Disclosure of Limited Federal tax information
At a minimum, the following terms are required in a state CSEA contract with a tribal entity to authorize re-disclosure of limited FTI pursuant to Title 26 of the Internal Revenue Code (IRC) 6103(l)(6)(b):
- A statement specifying that the state CSEA is contracting with a tribal entity for services
- A statement specifying that the services the state CSEA is contracting from the tribal entity is to establish and collect child support obligations from and/or to locate individuals owing such obligations to the state CSEA
- A statement specifying the consideration offered by the state CSEA for the services rendered by the tribal entity as a contractor
- A statement specifying that re-disclosures of FTI by the state CSEA under the contract with the tribal entity will be limited to the address, social security account number, and amount of any reductions in any overpayments under IRC 6402(c) otherwise payable to individuals for whom child support obligations are sought to be established or enforced for the state CSEA by the tribal entity as a contractor
- A statement specifying the state CSEA’s right of access to and review of the contractor tribal entity’s facilities and operations for compliance with contract terms
- Unmodified Publication 1075 Exhibit 7 language
- A statement specifying the state CSEA’s right to terminate the contract with the tribal entity for failure to adhere to the terms of the contract
Statements indicating that a tribal entity has sovereign immunity under the terms of the contract or that a tribal entity is not considered an employee or agent of the state contradict the existence of a valid contract to authorize re-disclosure of limited FTI pursuant to IRC 6103(l)(6)(b).
Scott M. Lekan
Office of Child Support Enforcement