[House Report 118-951]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-951
======================================================================
STRENGTHENING STATE AND TRIBAL CHILD SUPPORT
ENFORCEMENT ACT
_______
December 24, 2024.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Smith of Missouri, from the Committee on Ways and Means,
submitted the following
R E P O R T
[To accompany H.R. 7906]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 7906) to improve the effectiveness and available
tools of State and tribal child support enforcement agencies,
and for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................3
A. Purpose and Summary................................. 3
B. Background and Need for Legislation................. 4
C. Legislative History................................. 4
D. Designated Hearings................................. 5
II. EXPLANATION OF THE BILL..........................................5
A. Reasons for Change.................................. 5
B. Explanation of Provisions........................... 10
C. Effective Date...................................... 12
III. VOTES OF THE COMMITTEE..........................................12
IV. BUDGET EFFECTS OF THE BILL......................................13
A. Committee Estimate of Budgetary Effects............. 13
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 13
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE.......13
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......16
A. Committee Oversight Findings and Recommendations.... 16
B. Statement of General Performance Goals and
Objectives......................................... 16
C. Applicability of House Rule XXI, Clause 5(b)........ 16
D. Information Relating to Unfunded Mandates........... 16
E. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 16
F. Duplication of Federal Programs..................... 16
G. Tax Complexity Analysis............................. 17
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........17
A. Changes in Existing Law Proposed by the Bill, as
Reported........................................... 17
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening State and Tribal Child
Support Enforcement Act''.
SEC. 2. IMPROVING THE EFFECTIVENESS OF TRIBAL CHILD SUPPORT ENFORCEMENT
AGENCIES.
(a) Improving the Collection of Past-due Child Support Through State
and Tribal Parity in the Allowable Use of Tax Information.--
(1) Amendment to the social security act.--Section 464 of the
Social Security Act (42 U.S.C. 664) is amended by adding at the
end the following:
``(d) Applicability to Indian Tribes and Tribal Organizations
Receiving a Grant Under This Part.--This section, except for the
requirement to distribute amounts in accordance with section 457, shall
apply to an Indian tribe or tribal organization receiving a grant under
section 455(f) in the same manner in which this section applies to a
State with a plan approved under this part.''.
(2) Amendments to the internal revenue code.--
(A) Section 6103(a)(2) of the Internal Revenue Code
of 1986 is amended by striking ``any local child
support enforcement agency'' and inserting ``any tribal
or local child support enforcement agency''.
(B) Section 6103(a)(3) of such Code is amended by
inserting ``, (8)'' after ``(6)''.
(C) Section 6103(l) of such Code is amended--
(i) in paragraph (6)--
(I) by striking ``or local'' in
subparagraph (A) and inserting
``tribal, or local'';
(II) by striking ``and local'' in the
heading thereof and inserting ``tribal,
and local'';
(III) by striking ``The following''
in subparagraph (B) and inserting
``The'';
(IV) by striking the colon and all
that follows in subparagraph (B) and
inserting a period; and
(V) by adding at the end the
following:
``(D) State, tribal, or local child support
enforcement agency.--For purposes of this paragraph,
the following shall be treated as a State, tribal, or
local child support enforcement agency:
``(i) Any agency of a State or political
subdivision thereof operating pursuant to a
plan described in section 454 of the Social
Security Act which has been approved by the
Secretary of Health and Human Services under
part D of title IV of such Act.
``(ii) Any child support enforcement agency
of an Indian tribe or tribal organization
receiving a grant under section 455(f) of the
Social Security Act.'';
(ii) in paragraph (8)--
(I) in subparagraph (A), by striking
``or State or local'' and inserting ``,
State, tribal, or local'';
(II) in subparagraph (B), by striking
``enforced pursuant to a plan
described'' and all that follows
through ``of such Act'' and inserting
``enforced pursuant to the provisions
of part D of title IV of the Social
Security Act'';
(III) by adding at the end of
subparagraph (B) the following: ``The
information disclosed to any child
support enforcement agency under
subparagraph (A) with respect to any
individual with respect to whom child
support obligations are sought to be
established or enforced may be
disclosed by such agency to any agent
of such agency which is under contract
with such agency for purposes of, and
to the extent necessary in,
establishing and collecting child
support obligations from, and locating,
individuals owing such obligations.'';
(IV) by striking subparagraph (C) and
inserting the following:
``(C) State, tribal, or local child support
enforcement agency.--For purposes of this paragraph,
the term `State, tribal, or local child support
enforcement agency' has the same meaning as when used
in paragraph (6)(D).''; and
(V) by striking ``and local'' in the
heading thereof and inserting ``tribal,
and local''; and
(iii) in paragraph (10)(B), by adding at the
end the following new clause:
``(iii) The information disclosed to any
child support enforcement agency under
subparagraph (A) with respect to any individual
with respect to whom child support obligations
are sought to be established or enforced may be
disclosed by such agency to any agent of such
agency which is under contract with such agency
for purposes of, and to the extent necessary
in, establishing and collecting child support
obligations from, and locating, individuals
owing such obligations.''.
(D) Section 6103(p)(4) of such Code is amended--
(i) by striking ``subsection (l)(10),
(13)(A), (13)(B), (13)(C), (13)(D)(i), (16),
(18), (19), or (20), or any entity'' in the
matter preceding subparagraph (A) and inserting
``subsection (l)(6), (8), (10), (13)(A),
(13)(B), (13)(C), (13)(D)(i), (16), (18), (19),
or (20), or any Indian tribe or tribal
organization receiving a grant under section
455(f) of the Social Security Act, or any
entity'';
(ii) by striking ``subsection (l)(10)'' in
subparagraph (F)(i) and inserting ``subsection
(l)(6), (8), (10)'';
(iii) by striking ``subsection (l)(10),
(13)(A), (13)(B), (13)(C), (13)(D)(i), (16),
(18), (19), or (20) or any entity'' each place
it appears in the matter following subparagraph
(F)(iii) and inserting ``subsection (l)(6),
(8), (10), (13)(A), (13)(B), (13)(C),
(13)(D)(i), (16), (18), (19), or (20), or any
Indian tribe or tribal organization receiving a
grant under section 455(f) of the Social
Security Act, or any entity''; and
(iv) by inserting ``, (8)'' after ``paragraph
(6)(A)'' in the matter following subparagraph
(F)(iii).
(E) Section 6103(p)(9) of such Code is amended by
striking ``or local'' and inserting ``tribal, or
local''.
(F) Section 6402(c) of such Code is amended by adding
at the end the following: ``For purposes of this
subsection, any reference to a State shall include a
reference to any Indian tribe or tribal organization
receiving a grant under section 455(f) of the Social
Security Act.''.
(b) Reimbursement for Reports.--Section 453(g) of the Social Security
Act (42 U.S.C. 653(g)) is amended--
(1) in the subsection heading, by striking ``State''; and
(2) by striking ``and State'' and inserting ``, State, and
tribal''.
(c) Technical Amendments.--Paragraphs (7) and (33) of section 454 of
the Social Security Act (42 U.S.C. 654) are each amended by striking
``450b'' and inserting ``5304''.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
The bill, H.R. 7906, the ``Strengthening State and Tribal
Child Support Enforcement Act,'' as ordered by the Committee on
Ways and Means on July 24, 2024, resolves a longstanding issue
involving the use of contractors by state child support
agencies and makes changes to provide parity for tribes.
Specifically, H.R. 7906 provides such agencies with the
authority to fully redisclose tax information received to their
contractors to the extent necessary to enforce, collect, and
locate individuals who owe past-due child support. In addition,
the bill provides tribal child support agencies with the same
access to confidential tax return information as their federal,
state, and local counterparts.
B. Background and Need for Legislation
Background
States employ a number of different tools to pursue and
enforce child support orders on behalf of custodial parents,
and often use contractors to perform these functions as
permitted by Title IV-D (``Title IV-D'') of the Social Security
Act, a federal-state matching program administered by the
Department of Health and Human Services (HHS) that provides
reimbursement for administrative costs associated with a
variety of child support services and functions. HHS requires
states to use the Treasury Offset Program operated by the
Internal Revenue Service (IRS) as a tool to collect past due
child support payments by intercepting Federal tax refunds.
However, section 6103 of the Internal Revenue Code limits the
information that state child support agencies can share with
their contractors. Since 2009, IRS has held in abeyance
findings that state child support agencies were sharing more
information with contractors than provided by section 6103. On
February 15, 2023, the IRS notified state agencies that such
findings would no longer be held in abeyance. In accordance
with a second superseding directive issued on June 9, 2023, by
October 1, 2024, state child support agencies are required to
submit to the IRS a plan for coming into compliance with
section 6103. States have indicated that mitigation plans
involving discontinuing use of contractors would result in
significant costs to states and the federal government and
could jeopardize child support payments to millions of
families.
In addition, although 60 tribes operate their own child
support programs rather than relying on state programs, none
have direct access to confidential tax return information or
the ability to directly request that Treasury offset a refund
for past-due child support for tribal families through the
Treasury Offset Program.
Need for Legislation
The Committee believes that the implementation of the IRS
directive regarding state contractors would be costly and
clarification of the authority to share information with
contractors is vital to the continued efficient operation of
child support enforcement and services programs. Further, the
Committee believes it is necessary to provide tribal child
support agencies with the same tools that are available to
State and local agencies.
C. Legislative History
Background
H.R. 7906 was introduced on April 9, 2024, and was referred
to the Committee on Ways and Means.
Committee Hearings
The Committee has held the following hearing:
On November 29, 2023, the Committee held a hearing entitled
``Joint Work and Welfare and Oversight Subcommittee Hearing on
Strengthening the Child Support and Enforcement Program for
States and Tribes.''\1\
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\1\H. Comm. on Ways and Means, Joint Work & Welfare and Oversight
Subcommittee Hearing on Strengthening the Child Support Enforcement
Program for States and Tribes (Nov. 29, 2023), https://
waysandmeans.house.gov/event/joint-work-welfare-and-oversight-
subcommittee-hearing-on-strengthening-the-child-support-enforcement-
program-for-states-and-tribes/.
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Committee Action
The Committee on Ways and Means marked up H.R. 7906, the
``Strengthening State and Tribal Child Support Enforcement
Act,'' on July 24, 2024, and unanimously ordered the bill, as
amended, favorably reported (with a quorum being present).\2\
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\2\H. Comm. on Ways and Means, Markup of H.R. 7906 and H.R. 9076
(July 24, 2024), https://waysandmeans.house.gov/event/markup-of-h-r-
7906-and-h-r-9076/.
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D. Designated Hearings
Pursuant to clause 3(c)(6) of rule XIII, the following
hearing was used to develop and consider H.R. 7906:
On November 29, 2023, the Committee held a hearing entitled
``Joint Work and Welfare and Oversight Subcommittee Hearing on
Strengthening the Child Support and Enforcement Program for
States and Tribes.''\3\
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\3\H. Comm. on Ways and Means, Joint Work & Welfare and Oversight
Subcommittee Hearing on Strengthening the Child Support Enforcement
Program for States and Tribes (Nov. 29, 2023), https://
waysandmeans.house.gov/event/joint-work-welfare-and-oversight-
subcommittee-hearing-on-strengthening-the-child-support-enforcement-
program-for-states-and-tribes/.
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II. EXPLANATION OF THE BILL
A. Reasons for Change
Section 6103--Overview
Section 6103 provides that individual tax returns and
return information are confidential and may not be disclosed by
the IRS, other federal employees, state employees, and certain
others having access to the information except as provided in
the Internal Revenue Code (IRC).\4\ A ``return'' is any tax or
information return, declaration of estimated tax, or claim for
refund required by, or permitted under, the IRC, that is filed
with the Secretary by, on behalf of, or with respect to any
person.\5\ Return also includes any amendment or supplement
thereto, including supporting schedules, attachments, or lists
which are supplemental to, or part of, the return so filed.
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\4\Sec. 6103(a).
\5\Sec. 6103(b)(1).
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The definition of ``return information'' is very broad and
includes any information gathered by the IRS with respect to a
person's liability or possible liability under the IRC.\6\
``Taxpayer return information'' is a subset of return
information. Taxpayer return information is return information
filed with or furnished to the IRS by, or on behalf of, the
taxpayer to whom the information relates. For example,
information submitted to the IRS by a taxpayer's accountant on
behalf of the taxpayer is taxpayer return information.
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\6\Sec. 6103(b)(2). Return information is
a taxpayer's identity, the nature, source, or amount of
his income, payments, receipts, deductions, exemptions, credits,
assets, liabilities, net worth, tax liability, tax withheld,
deficiencies, overassessments, or tax payments,
whether the taxpayer's return was, is being, or will be
examined or subject to other investigation or processing, or any other
data, received by, recorded by, prepared by, furnished to, or collected
by the Secretary with respect to a return or with respect to the
determination of the existence, or possible existence, of liability (or
the amount thereof) of any person under this title for any tax,
penalty, interest, fine, forfeiture, or other imposition, or offense,
any part of any written determination or any background
file document relating to such written determination (as such terms are
defined in section 6110(b)) which is not open to public inspection
under section 6110,
any advance pricing agreement entered into by a taxpayer
and the Secretary and any background information related to such
agreement or any application for an advance pricing agreement, and
any closing agreement under section 7121, and any similar
agreement, and any background information related to such an agreement
or request for such an agreement,
Return information does not include data in a form which
cannot be associated with, or otherwise identify, directly or
indirectly, a particular taxpayer.
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In addition to confidentiality, section 6103 imposes
certain safeguard requirements as a condition of receiving
confidential return information. IRS Publication 1075 sets
forth the requirements for federal, state, and local agencies
receiving confidential returns and return information.\7\ In
addition, agencies that utilize contractors or other agents
must ensure that such agents and contractors have in effect
safeguards to protect the confidential information, conduct on-
site reviews and report the findings to the Secretary, and
provide an annual certification that each contractor or other
agent is in compliance with all requirements.\8\
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\7\Internal Revenue Service, Publication 1075, Tax Information
Security Guidelines for Federal State and Local Agencies (November
2021), available at https://www.irs.gov/pub/irs-pdf/p1075.pdf.
\8\Sec. 6103(p)(9).
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Federal, State, and local child support enforcement
Section 6103 contains a number of exceptions to the general
rule of confidentiality, which permit disclosure in
specifically identified circumstances when certain conditions
are satisfied.\9\ Three of those exceptions specifically
involve child support enforcement: (1) disclosures of return
information by the IRS to child support agencies, (2)
disclosures of return information from the Social Security
Administration to child support agencies, and (3) disclosures
to agencies requesting a tax refund offset for child
support.\10\
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\9\Sec. 6103(c)-(o). Such exceptions include disclosures by consent
of the taxpayer, disclosures to State tax officials, disclosures to the
taxpayer and persons having a material interest, disclosures to
Committees of Congress, disclosures to the President, disclosures to
Federal employees for tax administration purposes, disclosures to
Federal employees for nontax criminal law enforcement purposes and to
the Government Accountability Office, disclosures for statistical
purposes, disclosures for miscellaneous tax administration purposes,
disclosures for purposes other than tax administration, disclosures of
taxpayer identity information, disclosures to tax administration
contractors, and disclosures with respect to wagering excise taxes.
\10\Sec. 6103(l)(6), (8), and (10).
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Disclosure of return information by the IRS to child
support enforcement agencies
The IRS may disclose to federal, state, and local child
support agencies specified items of return information upon
written request in connection with an individual's child
support obligations to be established or enforced pursuant to
the Social Security Act and with respect to the individual to
whom such obligation is owing.\11\ These items are (for the
person liable for child support and the person to whom support
is owed): (1) social security account number (or numbers, if
the individual involved has more than one such number), (2)
address, (3) filing status, (4) amounts and nature of income,
and (5) the number of dependents reported on any return filed
by such persons, and if not reasonably available from another
source--(6) return information relating to gross income as
reflected on the returns filed by such persons, (7) the names
and addresses of payors of such income, and (8) the names of
any dependents reported on such return.
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\11\Sec. 6103(l)(6).
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The child support agency may redisclose to an agent
authorized to carry out such programs only a limited amount of
return information from what it receives: the address and
social security number of such individual and the amount of any
overpayments otherwise payable to such individual that have
been withheld to offset past-due child support. The information
obtained under this provision may be used only to the extent
necessary in establishing and collecting child support
obligations and locating individuals owing such obligations.
Child support agencies are required to follow strict data
security practices, including limiting access to individuals
who need specific information and regularly training those
employees on security and data disclosure rules.
Disclosure of return information by the Social Security
Administration to child support agencies
Separately, the Commissioner of the Social Security
Administration can redisclose certain information the Social
Security Administration is authorized to receive directly to
federal, state, and local child support enforcement agencies:
social security account numbers, net earnings from self-
employment, wages, and payments of retirement income. Such
redisclosure is to be made only for purposes of establishing
and collecting child support obligations and locating
individuals with such obligations.\12\ This disclosure
authority does not include authority for child support agencies
to redisclose the information to contractors or agents.
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\12\Sec. 6103(l)(8).
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Refund offset for child support and related disclosure
authority
Section 6402(c) of the IRC allows a taxpayer's refund to be
offset for the collection of past-due support owed by that
person, of which the Secretary has been notified by a State in
accordance with section 464(c) (``Title IV-D'') of the Social
Security Act. The IRS may, upon written request, disclose
certain return information to officers and employees of any
agency seeking an offset of a taxpayer's overpayment under
section 6402(c) for child support.\13\ Disclosure of return
information with respect to the taxpayer against whom such
reduction was made or not made is limited to: (1) the
taxpayer's identity information including any other person
filing a joint return with such taxpayer, (2) whether or not a
reduction has been made, (3) the amount of the reduction, (4)
whether the taxpayer has filed a joint return, and (5) the fact
that a payment was made (and the amount) to the spouse of the
taxpayer filing a joint return.
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\13\Sec. 6103(l)(10).
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Tribal child support enforcement agencies
Tribal child support agencies do not presently have the
same authority to receive confidential return information that
state and local child support agencies do. The disclosure
authorities discussed above do not include tribal child support
agencies. As a result, some tribes rely on state child support
agencies to assist in the collection of past-due child support
for tribal families. Some state child support agencies enter
into contracts with the tribal agency, where the tribe is given
limited access as a contractor of the state agency.\14\
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\14\Testimony of James Fleming, Director, Child Support, North
Dakota Department of Health and Human Services at the Joint Work and
Welfare and Oversight Subcommittee Hearing on Strengthening the Child
Support Enforcement Program for States and Tribes (November 29, 2023)
available at https://gop-waysandmeans.house.gov/wp-content/uploads/
2023/11/Fleming-
Testimony.pdf.
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Conflict in Federal law
Title V-D of the Social Security Act allows states to
administer child support programs using contractors in a
variety of ways, while section 6103 strictly limits contractor
access to only a limited subset of the confidential tax
information that is available to child support agencies.\15\
The IRC lists only three items of return information that can
be shared with child support contractors: address, social
security number and amount offset.
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\15\While these provisions do not authorize contractors to have
access to confidential return information for purposes of section 6103,
access by contractors in performing child support enforcement functions
is arguably implied. See 42 U.S.C. sec. 654(27) which provides a state
child support plan must `` . . . have sufficient State staff
(consisting of State employees) and (at State option) contractors
reporting directly to the State agency to . . . (i) monitor and enforce
support collections through the unit in cases being enforced by the
State pursuant to paragraph (4) (including carrying out the automated
data processing responsibilities described in section 654a(g) of this
title)''; 42 U.S.C. sec. 654a(d)(4) (relating to automated data
processing) which provides ``[p]rocedures to ensure that all personnel
(including State and local agency staff and contractors) who may have
access to or be required to use confidential program data are informed
of applicable requirements and penalties (including those in section
6103 of the Internal Revenue Code of 1986), and are adequately trained
in security procedures.''; and 42 U.S.C. sec. 654b(a)(2), which
provides: ``The State disbursement unit shall be operated--(A) directly
by the State agency (or 2 or more State agencies under a regional
cooperative agreement), or (to the extent appropriate) by a contractor
responsible directly to the State agency . . .''
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The IRS Office of Safeguards conducts a review every three
years of each agency that receives confidential tax
information. The review covers recordkeeping, secure storage,
restricting access (including computer security and need and
use), other safeguards (employee awareness and internal
inspections), reporting requirements, and disposal. Through
these reviews, the IRS found that child support agencies
receiving confidential tax information under section 6103 are
allowing agency contractors to access more confidential tax
information than section 6103 allows. However, since at least
2009, the IRS held those findings in abeyance because of the
perceived conflict in federal law regarding child support
enforcement and did not require State child support agencies to
limit contractor access.\16\ Instead, the IRS ensured that the
return information in the contractors' possession was
adequately safeguarded and protected in accordance with
established IRS procedures. The IRS position changed on
February 15, 2023, when the IRS issued a Security and Privacy
alert to all state child support agencies stating that
effective October 1, 2023, agencies must be compliant with the
section 6103 restriction limiting contractors to the three data
elements.\17\ This initial alert was superseded by a second
alert issued on June 9, 2023, requiring states to develop plans
for mitigating unauthorized disclosures to contractors by
October 1, 2024.\18\
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\16\Internal Revenue Service, Office of Safeguards, Security and
Privacy Alert Memo (February 15, 2023) (obsolete).
\17\Ibid.
\18\Internal Revenue Service, Office of Privacy, Governmental
Liaison and Disclosure (PGLD), Security and Privacy Alert Memo (June 9,
2023).
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Child support and the Social Security Act
The Child Support Enforcement (CSE) program was enacted
into law in 1975 and renamed Child Support Services (CSS) in
2023.\19\}\20\ All 50 states, the District of
Columbia and 60 tribal nations operate child support
enforcement and services programs pursuant to Title V-D,\21\
which serves 12.8 million families and about 19 percent of all
children in the United States.\22\ Among all families eligible
for child support, 24 percent have income below the federal
poverty line. Families who are required to enroll in the CSS
program are those receiving cash assistance under the Temporary
Assistance for Needy Families (TANF) program, Medicaid
coverage, or, at state option, Supplemental Nutrition
Assistance Program (SNAP) food assistance.\23\ The program is
also available to non-assistance families if they choose to
enroll. More than half of child support cases in 2023 were
voluntary cases for families that never received public
assistance.\24\
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\19\Pub. L. No. 93-647.
\20\Federal Register, Vol. 88, No. 107, Monday, June 8, 2023.
https://www.govinfo.gov/content/pkg/FR-2023-06-05/pdf/2023-11815.pdf
\21\Jessica Tollestrop, Congressional Research Service, Overview of
Child Support Enforcement (CSE) Access to Taxpayer Data and Recent
Legislation (S. 3154 and H.R. 7906) (Insight IN11748) May 15, 2024,
available at https://www.crs.gov/Reports/IN11748?source=search.
\22\Ibid.
\23\Congressional Research Service, Child Support Enforcement:
Program Basics (Report RS22380), July 19, 2023, at page 2, available at
https://crsreports.congress.gov/product/pdf/RS/RS22380.
\24\Department of Health and Human Services, Office of Child
Support Services, Preliminary Report FY 2023, Table P-2 Statistical
Overview for Five Consecutive Fiscal Years, at page 8, available at:
https://www.acf.hhs.gov/sites/default/files/documents/ocse/
fy_2023_preliminary_
report.pdf.
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The CSS program is administered at the federal level by the
Office of Child Support Services (OCSS) at HHS, which helps
state and tribal agencies develop, manage, and operate their
child support programs effectively and according to federal
law. Most child support payments, 70 percent in FY 2023, are
collected from noncustodial parents through income withholding.
State child support agencies that receive a grant under Title
V-D are required to collect past-due child support from federal
tax refunds.\25\ In FY 2023, five percent or $1.5 billion, was
collected in this manner.\26\
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\25\Department of Health and Human Services, Office of Child
Support Services, Collection of Child Support through Federal Income
Tax Refund Offset, Administrative Offset, and Passport Denial, AT-98-17
(July, 6, 1998). https://www.acf.hhs.gov/archive/css/policy-guidance/
collection-child-support-through-federal-income-tax-refund-offset.
\26\Department of Health and Human Services, Office of Child
Support Services, Preliminary Report FY 2023, Table P-29 Total
Collections Received by Method of Collection, at page 35, available at
https://www.acf.hhs.gov/sites/default/files/documents/ocse/
fy_2023_preliminary_
report.pdf#page=35.
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To assist in the collection of child support payments, OCSS
also operates the Federal Parent Locator Service (FPLS). The
FPLS assists states in locating noncustodial parents, putative
fathers, and custodial parties for the establishment of
paternity and child support obligations, as well as the
enforcement and modification of orders for child support,
custody, and visitation.\27\ Title V-D allows state child
support agencies to receive reimbursement for costs incurred in
furnishing information requested by the Secretary for the FPLS.
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\27\Congressional Research Service, Child Support Enforcement:
Program Basics (Report RS22380), July 19, 2023, at page 4, available at
https://crsreports.congress.gov/product/pdf/RS/RS22380.
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Legislative solution
As one of the most efficient federal programs, the CSS
program produces $5 in benefits for every $1 spent to
administer it. There has been a longstanding disagreement over
the extent to which federal law permits contractors to access
the information available to state child support agencies.
Since 2009, IRS audit findings have been suspended so that
states that use contractors could continue to operate pending a
legislative resolution. However, the IRS mandate to state
agencies to comply with federal tax law (section 6103) and
develop mitigation plans to bring their programs in-house would
be costly, eliminate the efficiency gains in using contractors,
and disrupt the flow of child support payments to the families
that need them. This legislation removes restrictions on
federal taxpayer information provided to contractors, while
maintaining key safeguards for confidentiality, and provides
parity for tribal child support agencies.
The Committee believes that tribal child support agencies
should have access to the same tools as their state and local
counterparts for purposes of collecting child support. The
Committee's intent is to provide flexibility to tribal child
support agencies to access the Treasury Offset Program directly
or to contract with state child support agencies to request a
refund offset for past-due support due, including through
consortia. Tribal child support agencies may desire this option
due to staffing, technology, or other financial constraints.
The Committee believes tribal child support agencies should
continue to have this option and confirmed with the IRS that no
additional authorities are needed to continue to allow state
child support agencies to act on behalf of tribal child support
agencies.
The Committee also believes that the safeguarding of
confidential return information is vital to our voluntary tax
system and therefore the imposition of, and compliance with,
safeguard requirements as a condition of receiving that
information is necessary and appropriate.
B. Explanation of Provisions
Amendments to the Internal Revenue Code
Overview
This provision amends section 6103 of the Internal Revenue
Code (``IRC'') to provide state child support agencies
authority to share with contractors all federal taxpayer
information the state is authorized to receive. It also
provides parity to tribal child support agencies that receive a
grant under section 455(f) of the Social Security Act, with the
same access to return information as federal, state, and local
child support agencies, and amends section 6402(c) of the IRC
to include such agencies.
General rule of confidentiality
The provision requires tribal child support agencies to
abide by section 6103's general rule of confidentiality unless
a specific disclosure exception is provided for in the IRC.
Disclosure of return information by the IRS to child
support agencies
For all state child support agencies, the provision
eliminates the restriction on information permitted to be
redisclosed to contractors. Under the provision, states are
permitted to redisclose to their contractors the same
information the agency receives from the IRS.
The provision amends section 6103(l)(6) to allow tribal
child support agencies to receive confidential return
information directly from the IRS. The provision gives parity
to tribal child support agencies by defining a state, tribal,
or local child support enforcement agency for purposes of
receiving confidential return information to be: (1) any agency
of a state or political subdivision thereof operating pursuant
to a plan described in section 454 of the Social Security Act
which has been approved by the Secretary of HHS under Title IV-
D of the Social Security Act, and (2) any child support
enforcement agency of an Indian tribe or tribal organization
receiving a grant under section 455(f) of the Social Security
Act.
Disclosure of return information by the Social Security
Administration to child support agencies
This provision permits federal, state, local and tribal
child support agencies to redisclose the information received
to their contractors to the extent necessary in, establishing
and collecting child support obligations from, and locating,
individuals owing such obligations. The definition of
``Federal, State, local, and tribal child support enforcement
agency'' for purposes of receiving information from the Social
Security Administration is the same as described above for
receiving information directly from the IRS.
The provision expressly includes tribal child support
agencies as authorized to receive confidential return
information from the Social Security Administration.
Refund offset for child support and related disclosure
authority
This provision provides that information disclosed to a
state child support agency about an offset may be redisclosed
by the agency to its contractors for purposes of and to the
extent necessary in establishing and collecting child support
obligations from, and in locating, individuals owing such
obligations. The provision also amends section 6402(c)
(relating to the offset of past-due child support against
overpayments) to include any Indian tribe or tribal
organization receiving a grant under section 455(f) of the
Social Security Act.
Application of safeguards
As a condition of receiving confidential return
information, this provision requires that tribal child support
agencies, like their federal, state, and local counterparts,
must satisfy to the satisfaction of the Secretary certain
requirements to maintain and protect the confidentiality of the
information. If the Secretary determines that any child support
agency or contractor thereof has failed to meet the
requirements, the Secretary, after proceedings for review, may
take such actions as are necessary to ensure the requirements
are met, including refusing to disclose information until such
requirement have been or will be met.
Under the provision, all contractors of state child support
agencies receiving confidential return information also must
satisfy to the satisfaction of the Secretary certain
requirements to maintain and protect the confidentiality of
that information, including, upon completion of use, returning
the information to the Secretary or making the information
undisclosable in any manner and furnishing a written report to
the Secretary describing such manner. To the extent a safeguard
report is required, contractors are to make such reports
through the child support agency. As under present law, all
state child support agencies must ensure that their agents and
contractors have in effect safeguards to protect the
confidential information, conduct on-site reviews and report
the findings to the Secretary, and provide an annual
certification that each contractor or other agent is in
compliance with all requirements.
Amendments to the Social Security Act
This provision amends section 464 of the Social Security
Act to explicitly provide that the federal tax refund offset
authorities apply to Indian tribes or tribal organizations that
receive a grant under section 455(f) of the Social Security
Act. The provision also amends section 453(g) of the Social
Security Act, outlining the Federal Parent Locator Service,
allowing Indian tribes or tribal organizations to receive
reimbursement for the costs of the information exchange.
C. Effective Date
This provision provides that the bill is effective on the
date of enactment.
III. VOTES OF THE COMMITTEE
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 7906, the ``Strengthening State and
Tribal Child Support Enforcement Act,'' on July 24, 2024.
H.R. 7906 was ordered favorably reported to the House of
Representatives as amended by a roll call vote of 37 yeas to 0
nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)..................... X ...... ......... Mr. Neal............. ...... ...... .........
Mr. Buchanan....................... X ...... ......... Mr. Doggett.......... ...... ...... .........
Mr. Smith (NE)..................... X ...... ......... Mr. Thompson......... X ...... .........
Mr. Kelly.......................... X ...... ......... Mr. Larson........... ...... ...... .........
Mr. Schweikert..................... X ...... ......... Mr. Blumenauer....... X ...... .........
Mr. LaHood......................... X ...... ......... Mr. Pascrell......... ...... ...... .........
Dr. Wenstrup....................... X ...... ......... Mr. Davis............ X ...... .........
Mr. Arrington...................... X ...... ......... Ms. Sanchez.......... X ...... .........
Dr. Ferguson....................... X ...... ......... Ms. Sewell........... X ...... .........
Mr. Estes.......................... ...... ...... ......... Ms. DelBene.......... X ...... .........
Mr. Smucker........................ X ...... ......... Ms. Chu.............. X ...... .........
Mr. Hern........................... X ...... ......... Ms. Moore............ X ...... .........
Ms. Miller......................... X ...... ......... Mr. Kildee........... X ...... .........
Dr. Murphy......................... X ...... ......... Mr. Beyer............ X ...... .........
Mr. Kustoff........................ X ...... ......... Mr. Evans............ ...... ...... .........
Mr. Fitzpatrick.................... X ...... ......... Mr. Schneider........ X ...... .........
Mr. Steube......................... X ...... ......... Mr. Panetta.......... X ...... .........
Ms. Tenney......................... X ...... ......... Mr. Gomez............ X ...... .........
Mrs. Fischbach..................... X ...... .........
Mr. Moore.......................... X ...... .........
Mrs. Steel......................... X ...... .........
Ms. Van Duyne...................... X ...... .........
Mr. Feenstra....................... X ...... .........
Ms. Malliotakis.................... X ...... .........
Mr. Carey.......................... X ...... .........
----------------------------------------------------------------------------------------------------------------
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 7906 as
reported. The estimate prepared by the Congressional Budget
Office (CBO) is included below.
The provision is estimated to have negligible effect on
Federal fiscal year budget receipts.
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority.
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL
BUDGET OFFICE
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 7906 would amend the Internal Revenue Code and the
Social Security Act to allow contractors to state, local, and
tribal child support enforcement agencies to access federal
taxpayer information (FTI) that employees of state or local
child support enforcement agencies access under current law.
CBO estimates that enacting the bill would decrease net direct
spending by $777 million over the 2024-2034 period. The staff
of the Joint Committee on Taxation (JCT) estimate that enacting
H.R. 7906 would have a negligible effect on revenues over the
2024-2034 period.
Access to FTI by contractors: H.R. 7906 would allow
contractors to child support enforcement agencies to access
additional FTI for the purpose of collecting and disbursing
child support, eliminating the need for such agencies to
prevent that access going forward. In June 2023, the Internal
Revenue Service issued a Security and Privacy Alert Memo
requiring those agencies to prevent contractors from accessing
FTI other than an individual's address, Social Security number,
and the amount of any tax refund offset for payment of child
support. Using information from the Department of Health and
Human Services (HHS), states, and child support enforcement
associations, CBO estimates that HHS would spend $777 million
over the 2024-2034 period to reimburse child support
enforcement agencies for costs incurred to protect data. CBO's
baseline projections for the child support enforcement program
include that cost, which is classified as direct spending.
Thus, CBO estimates that enacting the bill would reduce direct
spending by $777 million over the 2024-2034 period.
Access to FTI by tribal child support enforcement agencies:
Under current law, neither employees nor contractors of tribal
governments have direct access to FTI. Based on information
from HHS, CBO expects that, under H.R. 7906, 25 tribes would
implement the safeguards required to access FTI and would use
that data to collect additional child support. Federal costs
and savings associated with that access are anticipated to
roughly offset one another.
CBO expects that tribes would incur costs to access and
protect FTI and to collect additional child support. CBO
estimates that such costs, which are reimbursed by the federal
government, would total about $2 million over the 2024-2034
period.
Savings associated with allowing tribes to access FTI also
would total about $2 million over the 2024-2034 period, CBO
estimates. Most of those savings arise because a portion of the
child support collected on behalf of families receiving cash
benefits from the Temporary Assistance for Needy Families
program is retained by the federal government and recorded in
the budget as an offsetting receipt (or a reduction in direct
spending). In addition, CBO expects that, because some families
would receive child support that would not otherwise be
collected, their income would increase. As a result, they would
qualify for smaller Supplemental Security Income (SSI)
benefits. CBO estimates that the reduction in SSI benefits
would total less than $500,000 over the 2024-2034 period.
Effect on revenues: JCT estimates that enacting H.R. 7906
could change individuals' behavior around income tax filing.
Those changes could increase or decrease revenues by small
amounts.
The costs of the legislation, detailed in Table 1, fall
within budget function 600 (income security).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 7906
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-----------------------------------------------------------------------------------------------------------------
2024- 2024-
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2029 2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority............ 0 -78 -85 -101 -101 -62 -62 -62 -70 -78 -78 -427 -777
Estimated Outlays..................... 0 -78 -85 -101 -101 -62 -62 -62 -70 -78 -78 -427 -777
--------------------------------------------------------------------------------------------------------------------------------------------------------
The staff of JCT estimate that enacting H.R. 7906 would have a negligible effect on revenues over the 2024-2034 period.
Mandates: CBO and JCT have determined that the bill
contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Susanne Mehlman.
The estimate was reviewed by Christina Hawley Anthony, Deputy
Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE
RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee made findings and
recommendations that are reflected in this report.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill does not authorize funding, so no statement of general
performance goals and objectives is required.
C. Applicability of House Rule XXI, Clause 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the bill, and states that the bill does not
provide such a Federal income tax rate increase.
D. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
E. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
F. Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
G. Tax Complexity Analysis
Section 4022(b) of the Internal Revenue Service Reform and
Restructuring Act of 1998 (the IRS Reform Act) requires the
staff of the Joint Committee on Taxation (in consultation with
the IRS and the Treasury Department) to provide a tax
complexity analysis. The complexity analysis is required for
all legislation reported by the Senate Committee on Finance,
the House Committee on Ways and Means, or any committee of
conference if the legislation includes a provision that
directly or indirectly amends the IRC and has widespread
applicability to individuals or small businesses. The staff of
the Joint Committee on Taxation has determined that there are
no provisions that are of widespread applicability to
individuals or small businesses.
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS
REPORTED
A. Changes in Existing Law Proposed by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law proposed
by the bill are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
SOCIAL SECURITY ACT
* * * * * * *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO
NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WEL-
FARE SERVICES
* * * * * * *
Part D--Child Support and Establishment of Paternity
* * * * * * *
FEDERAL PARENT LOCATOR SERVICE
Sec. 453. (a)(1) The Secretary shall establish and conduct a
Federal Parent Locator Service, under the direction of the
designee of the Secretary referred to in section 452(a), which
shall be used for the purposes specified in paragraphs (2) and
(3).
(2) For the purpose of establishing parentage or
establishing, setting the amount of, modifying, or enforcing
child support obligations, the Federal Parent Locator Service
shall obtain and transmit to any authorized person specified in
subsection (c)--
(A) information on, or facilitating the discovery of,
the location of any individual--
(i) who is under an obligation to pay child
support;
(ii) against whom such an obligation is
sought;
(iii) to whom such an obligation is owed; or
(iv) who has or may have parental rights with
respect to a child,
including the individual's social security number (or
numbers), most recent address, and the name, address,
and employer identification number of the individual's
employer;
(B) information on the individual's wages (or other
income) from, and benefits of, employment (including
rights to or enrollment in group health care coverage);
and
(C) information on the type, status, location, and
amount of any assets of, or debts owed by or to, any
such individual.
(3) For the purpose of enforcing any Federal or State law
with respect to the unlawful taking or restraint of a child, or
making or enforcing a child custody or visitation
determination, as defined in section 463(d)(1), the Federal
Parent Locator Service shall be used to obtain and transmit the
information specified in section 463(c) to the authorized
persons specified in section 463(d)(2).
(b)(1) Upon request, filed in accordance with subsection (d),
of any authorized person, as defined in subsection (c) for the
information described in subsection (a)(2), or of any
authorized person, as defined in section 463(d)(2) for the
information described in section 463(c), the Secretary shall,
notwithstanding any other provision of law, provide through the
Federal Parent Locator Service such information to such person,
if such information--
(A) is contained in any files or records maintained
by the Secretary or by the Department of Health and
Human Services; or
(B) is not contained in such files or records, but
can be obtained by the Secretary, under the authority
conferred by subsection (e), from any other department,
agency, or instrumentality of the United States or of
any State,
and is not prohibited from disclosure under paragraph (2).
(2) No information shall be disclosed to any person if the
disclosure of such information would contravene the national
policy or security interests of the United States or the
confidentiality of census data. The Secretary shall give
priority to requests made by any authorized person described in
subsection (c)(1). No information shall be disclosed to any
person if the State has notified the Secretary that the State
has reasonable evidence of domestic violence or child abuse and
the disclosure of such information could be harmful to the
custodial parent or the child of such parent, provided that--
(A) in response to a request from an authorized
person (as defined in subsection (c) of this section
and section 463(d)(2)), the Secretary shall advise the
authorized person that the Secretary has been notified
that there is reasonable evidence of domestic violence
or child abuse and that information can only be
disclosed to a court or an agent of a court pursuant to
subparagraph (B); and
(B) information may be disclosed to a court or an
agent of a court described in subsection (c)(2) of this
section or section 463(d)(2)(B), if--
(i) upon receipt of information from the
Secretary, the court determines whether
disclosure to any other person of that
information could be harmful to the parent or
the child; and
(ii) if the court determines that disclosure
of such information to any other person could
be harmful, the court and its agents shall not
make any such disclosure.
(3) Information received or transmitted pursuant to this
section shall be subject to the safeguard provisions contained
in section 454(26).
(c) As used in subsection (a), the term ``authorized person''
means--
(1) any agent or attorney of any State or Indian
tribe or tribal organization (as defined in subsections
(e) and (l) of section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b)), having in effect a plan approved under this
part, who has the duty or authority under such plans to
seek to recover any amounts owed as child and spousal
support (including, when authorized under the State
plan, any official of a political subdivision);
(2) the court which has authority to issue an order
or to serve as the initiating court in an action to
seek an order against a noncustodial parent for the
support and maintenance of a child, or any agent of
such court;
(3) the resident parent, legal guardian, attorney, or
agent of a child (other than a child receiving
assistance under a State program funded under part A
(as determined by regulations prescribed by the
Secretary) without regard to the existence of a court
order against a noncustodial parent who has a duty to
support and maintain any such child;
(4) a State agency that is administering a program
operated under a State plan under subpart 1 of part B,
or a State plan approved under subpart 2 of part B or
under part E; and
(5) an entity designated as a Central Authority for
child support enforcement in a foreign reciprocating
country or a foreign treaty country for purposes
specified in section 459A(c)(2).
(d) A request for information under this section shall be
filed in such manner and form as the Secretary shall by
regulation prescribe and shall be accompanied or supported by
such documents as the Secretary may determine to be necessary.
(e)(1) Whenever the Secretary receives a request submitted
under subsection (b) which he is reasonably satisfied meets the
criteria established by subsections (a), (b), and (c), he shall
promptly undertake to provide the information requested from
the files and records maintained by any of the departments,
agencies, or instrumentalities of the United States or of any
State.
(2) Notwithstanding any other provision of law, whenever the
individual who is the head of any department, agency, or
instrumentality of the United States receives a request from
the Secretary for information authorized to be provided by the
Secretary under this section, such individual shall promptly
cause a search to be made of the files and records maintained
by such department, agency, or instrumentality with a view to
determining whether the information requested is contained in
any such files or records. If such search discloses the
information requested, such individual shall immediately
transmit such information to the Secretary, except that if any
information is obtained the disclosure of which would
contravene national policy or security interests of the United
States or the confidentiality of census data, such information
shall not be transmitted and such individual shall immediately
notify the Secretary. If such search fails to disclose the
information requested, such individual shall immediately so
notify the Secretary. The costs incurred by any such
department, agency, or instrumentality of the United States or
of any State in providing such information to the Secretary
shall be reimbursed by him in an amount which the Secretary
determines to be reasonable payment for the information
exchange (which amount shall not include payment for the costs
of obtaining, compiling, or maintaining the information).
Whenever such services are furnished to an individual specified
in subsection (c)(3), a fee shall be charged such individual.
The fee so charged shall be used to reimburse the Secretary or
his delegate for the expense of providing such services.
(3) The Secretary of Labor shall enter into an agreement with
the Secretary to provide prompt access for the Secretary (in
accordance with this subsection) to the wage and unemployment
compensation claims information and data maintained by or for
the Department of Labor or State employment security agencies.
(f) The Secretary, in carrying out his duties and functions
under this section, shall enter into arrangements with State
and tribal agencies administering State and tribal plans
approved under this part for such State and tribal agencies to
accept from resident parents, legal guardians, or agents of a
child described in subsection (c)(3) and to transmit to the
Secretary requests for information with regard to the
whereabouts of noncustodial parents and otherwise to cooperate
with the Secretary in carrying out the purposes of this
section.
(g) Reimbursement for Reports by [State] Agencies.--The
Secretary may reimburse Federal [and State], State, and tribal
agencies for the costs incurred by such entities in furnishing
information requested by the Secretary under this section in an
amount which the Secretary determines to be reasonable payment
for the information exchange (which amount shall not include
payment for the costs of obtaining, compiling, or maintaining
the information).
(h) Federal Case Registry of Child Support Orders.--
(1) In general.--Not later than October 1, 1998, in
order to assist States in administering programs under
State plans approved under this part and programs
funded under part A, and for the other purposes
specified in this section, the Secretary shall
establish and maintain in the Federal Parent Locator
Service an automated registry (which shall be known as
the ``Federal Case Registry of Child Support Orders''),
which shall contain abstracts of support orders and
other information described in paragraph (2) with
respect to each case and order in each State case
registry maintained pursuant to section 454A(e), as
furnished (and regularly updated), pursuant to section
454A(f), by State agencies administering programs under
this part.
(2) Case and order information.--The information
referred to in paragraph (1) with respect to a case or
an order shall be such information as the Secretary may
specify in regulations (including the names, social
security numbers or other uniform identification
numbers, and State case identification numbers) to
identify the individuals who owe or are owed support
(or with respect to or on behalf of whom support
obligations are sought to be established), and the
State or States which have the case or order. Beginning
not later than October 1, 1999, the information
referred to in paragraph (1) shall include the names
and social security numbers of the children of such
individuals.
(3) Administration of federal tax laws.--The
Secretary of the Treasury shall have access to the
information described in paragraph (2) for the purpose
of administering those sections of the Internal Revenue
Code of 1986 which grant tax benefits based on support
or residence of children.
(i) National Directory of New Hires.--
(1) In general.--In order to assist States in
administering programs under State plans approved under
this part and programs funded under part A, and for the
other purposes specified in this section, the Secretary
shall, not later than October 1, 1997, establish and
maintain in the Federal Parent Locator Service an
automated directory to be known as the National
Directory of New Hires, which shall contain the
information supplied pursuant to section 453A(g)(2).
(2) Data entry and deletion requirements.--
(A) In general.--Information provided
pursuant to section 453A(g)(2) shall be entered
into the data base maintained by the National
Directory of New Hires within two business days
after receipt, and shall be deleted from the
data base 24 months after the date of entry.
(B) 12-month limit on access to wage and
unemployment compensation information.--The
Secretary shall not have access for child
support enforcement purposes to information in
the National Directory of New Hires that is
provided pursuant to section 453A(g)(2)(B), if
12 months has elapsed since the date the
information is so provided and there has not
been a match resulting from the use of such
information in any information comparison under
this subsection.
(C) Retention of data for research
purposes.--Notwithstanding subparagraphs (A)
and (B), the Secretary may retain such samples
of data entered in the National Directory of
New Hires as the Secretary may find necessary
to assist in carrying out subsection (j)(5).
(3) Administration of federal tax laws.--The
Secretary of the Treasury shall have access to the
information in the National Directory of New Hires for
purposes of administering section 32 of the Internal
Revenue Code of 1986, or the advance payment of the
earned income tax credit under section 3507 of such
Code, and verifying a claim with respect to employment
in a tax return.
(4) List of multistate employers.--The Secretary
shall maintain within the National Directory of New
Hires a list of multistate employers that report
information regarding newly hired employees pursuant to
section 453A(b)(1)(B), and the State which each such
employer has designated to receive such information.
(j) Information Comparisons and Other Disclosures.--
(1) Verification by social security administration.--
(A) In general.--The Secretary shall transmit
information on individuals and employers
maintained under this section to the Social
Security Administration to the extent necessary
for verification in accordance with
subparagraph (B).
(B) Verification by ssa.--The Social Security
Administration shall verify the accuracy of,
correct, or supply to the extent possible, and
report to the Secretary, the following
information supplied by the Secretary pursuant
to subparagraph (A):
(i) The name, social security number,
and birth date of each such individual.
(ii) The employer identification
number of each such employer.
(2) Information comparisons.--For the purpose of
locating individuals in a paternity establishment case
or a case involving the establishment, modification, or
enforcement of a support order, the Secretary shall--
(A) compare information in the National
Directory of New Hires against information in
the support case abstracts in the Federal Case
Registry of Child Support Orders not less often
than every 2 business days; and
(B) within 2 business days after such a
comparison reveals a match with respect to an
individual, report the information to the State
agency responsible for the case.
(3) Information comparisons and disclosures of
information in all registries for title iv program
purposes.--To the extent and with the frequency that
the Secretary determines to be effective in assisting
States to carry out their responsibilities under
programs operated under this part, part B, or part E
and programs funded under part A, the Secretary shall--
(A) compare the information in each component
of the Federal Parent Locator Service
maintained under this section against the
information in each other such component (other
than the comparison required by paragraph (2)),
and report instances in which such a comparison
reveals a match with respect to an individual
to State agencies operating such programs; and
(B) disclose information in such components
to such State agencies.
(4) Provision of new hire information to the social
security administration.--The National Directory of New
Hires shall provide the Commissioner of Social Security
with all information in the National Directory.
(5) Research.--The Secretary may provide access to
data in each component of the Federal Parent Locator
Service maintained under this section and to
information reported by employers pursuant to section
453A(b) for research purposes found by the Secretary to
be likely to contribute to achieving the purposes of
part A or this part, but without personal identifiers.
(6) Information comparisons and disclosure for
enforcement of obligations on higher education act
loans and grants.--
(A) Furnishing of information by the
secretary of education.--The Secretary of
Education shall furnish to the Secretary, on a
quarterly basis or at such less frequent
intervals as may be determined by the Secretary
of Education, information in the custody of the
Secretary of Education for comparison with
information in the National Directory of New
Hires, in order to obtain the information in
such directory with respect to individuals
who--
(i) are borrowers of loans made under
title IV of the Higher Education Act of
1965 that are in default; or
(ii) owe an obligation to refund an
overpayment of a grant awarded under
such title.
(B) Requirement to seek minimum information
necessary.--The Secretary of Education shall
seek information pursuant to this section only
to the extent essential to improving collection
of the debt described in subparagraph (A).
(C) Duties of the secretary.--
(i) Information comparison;
disclosure to the secretary of
education.--The Secretary, in
cooperation with the Secretary of
Education, shall compare information in
the National Directory of New Hires
with information in the custody of the
Secretary of Education, and disclose
information in that Directory to the
Secretary of Education, in accordance
with this paragraph, for the purposes
specified in this paragraph.
(ii) Condition on disclosure.--The
Secretary shall make disclosures in
accordance with clause (i) only to the
extent that the Secretary determines
that such disclosures do not interfere
with the effective operation of the
program under this part. Support
collection under section 466(b) shall
be given priority over collection of
any defaulted student loan or grant
overpayment against the same income.
(D) Use of information by the secretary of
education.--The Secretary of Education may use
information resulting from a data match
pursuant to this paragraph only--
(i) for the purpose of collection of
the debt described in subparagraph (A)
owed by an individual whose annualized
wage level (determined by taking into
consideration information from the
National Directory of New Hires)
exceeds $16,000; and
(ii) after removal of personal
identifiers, to conduct analyses of
student loan defaults.
(E) Disclosure of information by the
secretary of education.--
(i) Disclosures permitted.--The
Secretary of Education may disclose
information resulting from a data match
pursuant to this paragraph only to--
(I) a guaranty agency holding
a loan made under part B of
title IV of the Higher
Education Act of 1965 on which
the individual is obligated;
(II) a contractor or agent of
the guaranty agency described
in subclause (I);
(III) a contractor or agent
of the Secretary; and
(IV) the Attorney General.
(ii) Purpose of disclosure.--The
Secretary of Education may make a
disclosure under clause (i) only for
the purpose of collection of the debts
owed on defaulted student loans, or
overpayments of grants, made under
title IV of the Higher Education Act of
1965.
(iii) Restriction on redisclosure.--
An entity to which information is
disclosed under clause (i) may use or
disclose such information only as
needed for the purpose of collecting on
defaulted student loans, or
overpayments of grants, made under
title IV of the Higher Education Act of
1965.
(F) Reimbursement of hhs costs.--The
Secretary of Education shall reimburse the
Secretary, in accordance with subsection
(k)(3), for the additional costs incurred by
the Secretary in furnishing the information
requested under this subparagraph.
(7) Information comparisons for housing assistance
programs.--
(A) Furnishing of information by hud.--
Subject to subparagraph (G), the Secretary of
Housing and Urban Development shall furnish to
the Secretary, on such periodic basis as
determined by the Secretary of Housing and
Urban Development in consultation with the
Secretary, information in the custody of the
Secretary of Housing and Urban Development for
comparison with information in the National
Directory of New Hires, in order to obtain
information in such Directory with respect to
individuals who are participating in any
program under--
(i) the United States Housing Act of
1937 (42 U.S.C. 1437 et seq.);
(ii) section 202 of the Housing Act
of 1959 (12 U.S.C. 1701q);
(iii) section 221(d)(3), 221(d)(5),
or 236 of the National Housing Act (12
U.S.C. 1715l(d) and 1715z-1);
(iv) section 811 of the Cranston-
Gonzalez National Affordable Housing
Act (42 U.S.C. 8013); or
(v) section 101 of the Housing and
Urban Development Act of 1965 (12
U.S.C. 1701s).
(B) Requirement to seek minimum
information.--The Secretary of Housing and
Urban Development shall seek information
pursuant to this section only to the extent
necessary to verify the employment and income
of individuals described in subparagraph (A).
(C) Duties of the secretary.--
(i) Information disclosure.--The
Secretary, in cooperation with the
Secretary of Housing and Urban
Development, shall compare information
in the National Directory of New Hires
with information provided by the
Secretary of Housing and Urban
Development with respect to individuals
described in subparagraph (A), and
shall disclose information in such
Directory regarding such individuals to
the Secretary of Housing and Urban
Development, in accordance with this
paragraph, for the purposes specified
in this paragraph.
(ii) Condition on disclosure.--The
Secretary shall make disclosures in
accordance with clause (i) only to the
extent that the Secretary determines
that such disclosures do not interfere
with the effective operation of the
program under this part.
(D) Use of information by hud.--The Secretary
of Housing and Urban Development may use
information resulting from a data match
pursuant to this paragraph only--
(i) for the purpose of verifying the
employment and income of individuals
described in subparagraph (A); and
(ii) after removal of personal
identifiers, to conduct analyses of the
employment and income reporting of
individuals described in subparagraph
(A).
(E) Disclosure of information by hud.--
(i) Purpose of disclosure.--The
Secretary of Housing and Urban
Development may make a disclosure under
this subparagraph only for the purpose
of verifying the employment and income
of individuals described in
subparagraph (A).
(ii) Disclosures permitted.--Subject
to clause (iii), the Secretary of
Housing and Urban Development may
disclose information resulting from a
data match pursuant to this paragraph
only to a public housing agency, the
Inspector General of the Department of
Housing and Urban Development, and the
Attorney General in connection with the
administration of a program described
in subparagraph (A). Information
obtained by the Secretary of Housing
and Urban Development pursuant to this
paragraph shall not be made available
under section 552 of title 5, United
States Code.
(iii) Conditions on disclosure.--
Disclosures under this paragraph shall
be--
(I) made in accordance with
data security and control
policies established by the
Secretary of Housing and Urban
Development and approved by the
Secretary;
(II) subject to audit in a
manner satisfactory to the
Secretary; and
(III) subject to the
sanctions under subsection
(l)(2).
(iv) Additional disclosures.--
(I) Determination by
secretaries.--The Secretary of
Housing and Urban Development
and the Secretary shall
determine whether to permit
disclosure of information under
this paragraph to persons or
entities described in subclause
(II), based on an evaluation
made by the Secretary of
Housing and Urban Development
(in consultation with and
approved by the Secretary), of
the costs and benefits of
disclosures made under clause
(ii) and the adequacy of
measures used to safeguard the
security and confidentiality of
information so disclosed.
(II) Permitted persons or
entities.--If the Secretary of
Housing and Urban Development
and the Secretary determine
pursuant to subclause (I) that
disclosures to additional
persons or entities shall be
permitted, information under
this paragraph may be disclosed
by the Secretary of Housing and
Urban Development to a private
owner, a management agent, and
a contract administrator in
connection with the
administration of a program
described in subparagraph (A),
subject to the conditions in
clause (iii) and such
additional conditions as agreed
to by the Secretaries.
(v) Restrictions on redisclosure.--A
person or entity to which information
is disclosed under this subparagraph
may use or disclose such information
only as needed for verifying the
employment and income of individuals
described in subparagraph (A), subject
to the conditions in clause (iii) and
such additional conditions as agreed to
by the Secretaries.
(F) Reimbursement of hhs costs.--The
Secretary of Housing and Urban Development
shall reimburse the Secretary, in accordance
with subsection (k)(3), for the costs incurred
by the Secretary in furnishing the information
requested under this paragraph.
(G) Consent.--The Secretary of Housing and
Urban Development shall not seek, use, or
disclose information under this paragraph
relating to an individual without the prior
written consent of such individual (or of a
person legally authorized to consent on behalf
of such individual).
(8) Information comparisons and disclosure to assist
in administration of unemployment compensation
programs.--
(A) In general.--If, for purposes of
administering an unemployment compensation
program under Federal or State law, a State
agency responsible for the administration of
such program transmits to the Secretary the
names and social security account numbers of
individuals, the Secretary shall disclose to
such State agency information on such
individuals and their employers maintained in
the National Directory of New Hires, subject to
this paragraph.
(B) Condition on disclosure by the
secretary.--The Secretary shall make a
disclosure under subparagraph (A) only to the
extent that the Secretary determines that the
disclosure would not interfere with the
effective operation of the program under this
part.
(C) Use and disclosure of information by
state agencies.--
(i) In general.--A State agency may
not use or disclose information
provided under this paragraph except
for purposes of administering a program
referred to in subparagraph (A).
(ii) Information security.--The State
agency shall have in effect data
security and control policies that the
Secretary finds adequate to ensure the
security of information obtained under
this paragraph and to ensure that
access to such information is
restricted to authorized persons for
purposes of authorized uses and
disclosures.
(iii) Penalty for misuse of
information.--An officer or employee of
the State agency who fails to comply
with this subparagraph shall be subject
to the sanctions under subsection
(l)(2) to the same extent as if such
officer or employee was an officer or
employee of the United States.
(D) Procedural requirements.--State agencies
requesting information under this paragraph
shall adhere to uniform procedures established
by the Secretary governing information requests
and data matching under this paragraph.
(E) Reimbursement of costs.--The State agency
shall reimburse the Secretary, in accordance
with subsection (k)(3), for the costs incurred
by the Secretary in furnishing the information
requested under this paragraph.
(9) Information comparisons and disclosure to assist
in federal debt collection.--
(A) Furnishing of information by the
secretary of the treasury.--The Secretary of
the Treasury shall furnish to the Secretary, on
such periodic basis as determined by the
Secretary of the Treasury in consultation with
the Secretary, information in the custody of
the Secretary of the Treasury for comparison
with information in the National Directory of
New Hires, in order to obtain information in
such Directory with respect to persons--
(i) who owe delinquent nontax debt to
the United States; and
(ii) whose debt has been referred to
the Secretary of the Treasury in
accordance with 31 U.S.C. 3711(g).
(B) Requirement to seek minimum
information.--The Secretary of the Treasury
shall seek information pursuant to this section
only to the extent necessary to improve
collection of the debt described in
subparagraph (A).
(C) Duties of the secretary.--
(i) Information disclosure.--The
Secretary, in cooperation with the
Secretary of the Treasury, shall
compare information in the National
Directory of New Hires with information
provided by the Secretary of the
Treasury with respect to persons
described in subparagraph (A) and shall
disclose information in such Directory
regarding such persons to the Secretary
of the Treasury in accordance with this
paragraph, for the purposes specified
in this paragraph. Such comparison of
information shall not be considered a
matching program as defined in 5 U.S.C.
552a.
(ii) Condition on disclosure.--The
Secretary shall make disclosures in
accordance with clause (i) only to the
extent that the Secretary determines
that such disclosures do not interfere
with the effective operation of the
program under this part. Support
collection under section 466(b) of this
title shall be given priority over
collection of any delinquent Federal
nontax debt against the same income.
(D) Use of information by the secretary of
the treasury.--The Secretary of the Treasury
may use information provided under this
paragraph only for purposes of collecting the
debt described in subparagraph (A).
(E) Disclosure of information by the
secretary of the treasury.--
(i) Purpose of disclosure.--The
Secretary of the Treasury may make a
disclosure under this subparagraph only
for purposes of collecting the debt
described in subparagraph (A).
(ii) Disclosures permitted.--Subject
to clauses (iii) and (iv), the
Secretary of the Treasury may disclose
information resulting from a data match
pursuant to this paragraph only to the
Attorney General in connection with
collecting the debt described in
subparagraph (A).
(iii) Conditions on disclosure.--
Disclosures under this subparagraph
shall be--
(I) made in accordance with
data security and control
policies established by the
Secretary of the Treasury and
approved by the Secretary;
(II) subject to audit in a
manner satisfactory to the
Secretary; and
(III) subject to the
sanctions under subsection
(l)(2).
(iv) Additional disclosures.--
(I) Determination by
secretaries.--The Secretary of
the Treasury and the Secretary
shall determine whether to
permit disclosure of
information under this
paragraph to persons or
entities described in subclause
(II), based on an evaluation
made by the Secretary of the
Treasury (in consultation with
and approved by the Secretary),
of the costs and benefits of
such disclosures and the
adequacy of measures used to
safeguard the security and
confidentiality of information
so disclosed.
(II) Permitted persons or
entities.--If the Secretary of
the Treasury and the Secretary
determine pursuant to subclause
(I) that disclosures to
additional persons or entities
shall be permitted, information
under this paragraph may be
disclosed by the Secretary of
the Treasury, in connection
with collecting the debt
described in subparagraph (A),
to a contractor or agent of
either Secretary and to the
Federal agency that referred
such debt to the Secretary of
the Treasury for collection,
subject to the conditions in
clause (iii) and such
additional conditions as agreed
to by the Secretaries.
(v) Restrictions on redisclosure.--A
person or entity to which information
is disclosed under this subparagraph
may use or disclose such information
only as needed for collecting the debt
described in subparagraph (A), subject
to the conditions in clause (iii) and
such additional conditions as agreed to
by the Secretaries.
(F) Reimbursement of hhs costs.--The
Secretary of the Treasury shall reimburse the
Secretary, in accordance with subsection
(k)(3), for the costs incurred by the Secretary
in furnishing the information requested under
this paragraph. Any such costs paid by the
Secretary of the Treasury shall be considered
costs of implementing 31 U.S.C. 3711(g) in
accordance with 31 U.S.C. 3711(g)(6) and may be
paid from the account established pursuant to
31 U.S.C. 3711(g)(7).
(10) Information comparisons and disclosure to assist
in administration of supplemental nutrition assistance
program benefits.--
(A) In general.--If, for purposes of
administering a supplemental nutrition
assistance program under the Food and Nutrition
Act of 2008, a State agency responsible for the
administration of the program transmits to the
Secretary the names and social security account
numbers of individuals, the Secretary shall
disclose to the State agency information on the
individuals and their employers maintained in
the National Directory of New Hires, subject to
this paragraph.
(B) Condition on disclosure by the
secretary.--The Secretary shall make a
disclosure under subparagraph (A) only to the
extent that the Secretary determines that the
disclosure would not interfere with the
effective operation of the program under this
part.
(C) Use and disclosure of information by
state agencies.--
(i) In general.--A State agency may
not use or disclose information
provided under this paragraph except
for purposes of administering a program
referred to in subparagraph (A).
(ii) Information security.--The State
agency shall have in effect data
security and control policies that the
Secretary finds adequate to ensure the
security of information obtained under
this paragraph and to ensure that
access to such information is
restricted to authorized persons for
purposes of authorized uses and
disclosures.
(iii) Penalty for misuse of
information.--An officer or employee of
the State agency who fails to comply
with this subparagraph shall be subject
to the sanctions under subsection
(l)(2) to the same extent as if the
officer or employee were an officer or
employee of the United States.
(D) Procedural requirements.--State agencies
requesting information under this paragraph
shall adhere to uniform procedures established
by the Secretary governing information requests
and data matching under this paragraph.
(E) Reimbursement of costs.--The State agency
shall reimburse the Secretary, in accordance
with subsection (k)(3), for the costs incurred
by the Secretary in furnishing the information
requested under this paragraph.
(11) Information comparisons and disclosures to
assist in administration of certain veterans
benefits.--
(A) Furnishing of information by secretary of
veterans affairs.--Subject to the provisions of
this paragraph, the Secretary of Veterans
Affairs shall furnish to the Secretary, on such
periodic basis as determined by the Secretary
of Veterans Affairs in consultation with the
Secretary, information in the custody of the
Secretary of Veterans Affairs for comparison
with information in the National Directory of
New Hires, in order to obtain information in
such Directory with respect to individuals who
are applying for or receiving--
(i) needs-based pension benefits
provided under chapter 15 of title 38,
United States Code, or under any other
law administered by the Secretary of
Veterans Affairs;
(ii) parents' dependency and
indemnity compensation provided under
section 1315 of title 38, United States
Code;
(iii) health care services furnished
under subsections (a)(2)(G), (a)(3), or
(b) of section 1710 of title 38, United
States Code; or
(iv) compensation paid under chapter
11 of title 38, United States Code, at
the 100 percent rate based solely on
unemployability and without regard to
the fact that the disability or
disabilities are not rated as 100
percent disabling under the rating
schedule.
(B) Requirement to seek minimum
information.--The Secretary of Veterans Affairs
shall seek information pursuant to this
paragraph only to the extent necessary to
verify the employment and income of individuals
described in subparagraph (A).
(C) Duties of the secretary.--
(i) Information disclosure.--The
Secretary, in cooperation with the
Secretary of Veterans Affairs, shall
compare information in the National
Directory of New Hires with information
provided by the Secretary of Veterans
Affairs with respect to individuals
described in subparagraph (A), and
shall disclose information in such
Directory regarding such individuals to
the Secretary of Veterans Affairs, in
accordance with this paragraph, for the
purposes specified in this paragraph.
(ii) Condition on disclosure.--The
Secretary shall make disclosures in
accordance with clause (i) only to the
extent that the Secretary determines
that such disclosures do not interfere
with the effective operation of the
program under this part.
(D) Use of information by secretary of
veterans affairs.--The Secretary of Veterans
Affairs may use information resulting from a
data match pursuant to this paragraph only--
(i) for the purposes specified in
subparagraph (B); and
(ii) after removal of personal
identifiers, to conduct analyses of the
employment and income reporting of
individuals described in subparagraph
(A).
(E) Reimbursement of hhs costs.--The
Secretary of Veterans Affairs shall reimburse
the Secretary, in accordance with subsection
(k)(3), for the costs incurred by the Secretary
in furnishing the information requested under
this paragraph.
(F) Consent.--The Secretary of Veterans
Affairs shall not seek, use, or disclose
information under this paragraph relating to an
individual without the prior written consent of
such individual (or of a person legally
authorized to consent on behalf of such
individual).
(G) Expiration of authority.--The authority
under this paragraph shall be in effect as
follows:
(i) During the period beginning on
December 26, 2007, and ending on
November 18, 2011.
(ii) During the period beginning on
the date of the enactment of the
Department of Veterans Affairs Expiring
Authorities Act of 2013 and ending 180
days after that date.
(k) Fees.--
(1) For ssa verification.--The Secretary shall
reimburse the Commissioner of Social Security, at a
rate negotiated between the Secretary and the
Commissioner, for the costs incurred by the
Commissioner in performing the verification services
described in subsection (j).
(2) For information from state directories of new
hires.--The Secretary shall reimburse costs incurred by
State directories of new hires in furnishing
information as required by section 453A(g)(2), at rates
which the Secretary determines to be reasonable (which
rates shall not include payment for the costs of
obtaining, compiling, or maintaining such information).
(3) For information furnished to state and federal
agencies.--A State or Federal agency that receives
information from the Secretary pursuant to this section
or section 452(m) shall reimburse the Secretary for
costs incurred by the Secretary in furnishing the
information, at rates which the Secretary determines to
be reasonable (which rates shall include payment for
the costs of obtaining, verifying, maintaining, and
comparing the information).
(l) Restriction on Disclosure and Use.--
(1) In general.--Information in the Federal Parent
Locator Service, and information resulting from
comparisons using such information, shall not be used
or disclosed except as expressly provided in this
section, subject to section 6103 of the Internal
Revenue Code of 1986.
(2) Penalty for misuse of information in the national
directory of new hires.--The Secretary shall require
the imposition of an administrative penalty (up to and
including dismissal from employment), and a fine of
$1,000, for each act of unauthorized access to,
disclosure of, or use of, information in the National
Directory of New Hires established under subsection (i)
by any officer or employee of the United States or any
other person who knowingly and willfully violates this
paragraph.
(m) Information Integrity and Security.--The Secretary shall
establish and implement safeguards with respect to the entities
established under this section designed to--
(1) ensure the accuracy and completeness of
information in the Federal Parent Locator Service; and
(2) restrict access to confidential information in
the Federal Parent Locator Service to authorized
persons, and restrict use of such information to
authorized purposes.
(n) Federal Government Reporting.--Each department, agency,
and instrumentality of the United States shall on a quarterly
basis report to the Federal Parent Locator Service the name and
social security number of each employee and the wages paid to
the employee during the previous quarter, except that such a
report shall not be filed with respect to an employee of a
department, agency, or instrumentality performing intelligence
or counterintelligence functions, if the head of such
department, agency, or instrumentality has determined that
filing such a report could endanger the safety of the employee
or compromise an ongoing investigation or intelligence mission.
(o) Use of Set-Aside Funds.--Out of any money in the Treasury
of the United States not otherwise appropriated, there is
hereby appropriated to the Secretary for each fiscal year an
amount equal to 2 percent of the total amount paid to the
Federal Government pursuant to a plan approved under this part
during the immediately preceding fiscal year (as determined on
the basis of the most recent reliable data available to the
Secretary as of the end of the third calendar quarter following
the end of such preceding fiscal year) or the amount
appropriated under this paragraph for fiscal year 2002,
whichever is greater, which shall be available for use by the
Secretary, either directly or through grants, contracts, or
interagency agreements, for operation of the Federal Parent
Locator Service under this section, to the extent such costs
are not recovered through user fees. Amounts appropriated under
this subsection shall remain available until expended.
(p) Support Order Defined.--As used in this part, the term
``support order'' means a judgment, decree, or order, whether
temporary, final, or subject to modification, issued by a court
or an administrative agency of competent jurisdiction, for the
support and maintenance of a child, including a child who has
attained the age of majority under the law of the issuing
State, or of the parent with whom the child is living, which
provides for monetary support, health care, arrearages, or
reimbursement, and which may include related costs and fees,
interest and penalties, income withholding, attorneys' fees,
and other relief.
STATE PLAN FOR CHILD AND SPOUSAL SUPPORT
Sec. 454. A State plan for child and spousal support must--
(1) provide that it shall be in effect in all
political subdivisions of the State;
(2) provide for financial participation by the State;
(3) provide for the establishment or designation of a
single and separate organizational unit, which meets
such staffing and organizational requirements as the
Secretary may by regulation prescribe, within the State
to administer the plan;
(4) provide that the State will--
(A) provide services relating to the
establishment of paternity or the
establishment, modification, or enforcement of
child support obligations, as appropriate,
under the plan with respect to--
(i) each child for whom (I)
assistance is provided under the State
program funded under part A of this
title, (II) benefits or services for
foster care maintenance are provided
under the State program funded under
part E of this title, (III) medical
assistance is provided under the State
plan approved under title XIX, or (IV)
cooperation is required pursuant to
section 6(l)(1) of the Food and
Nutrition Act of 2008 (7 U.S.C.
2015(l)(1)), unless, in accordance with
paragraph (29), good cause or other
exceptions exist;
(ii) any other child, if an
individual applies for such services
with respect to the child (except that,
if the individual applying for the
services resides in a foreign
reciprocating country or foreign treaty
country, the State may opt to require
the individual to request the services
through the Central Authority for child
support enforcement in the foreign
reciprocating country or the foreign
treaty country, and if the individual
resides in a foreign country that is
not a foreign reciprocating country or
a foreign treaty country, a State may
accept or reject the application); and
(B) enforce any support obligation
established with respect to--
(i) a child with respect to whom the
State provides services under the plan;
or
(ii) the custodial parent of such a
child;
(5) provide that (A) in any case in which support
payments are collected for an individual with respect
to whom an assignment pursuant to section 408(a)(3) is
effective, such payments shall be made to the State for
distribution pursuant to section 457 and shall not be
paid directly to the family, and the individual will be
notified on a monthly basis (or on a quarterly basis
for so long as the Secretary determines with respect to
a State that requiring such notice on a monthly basis
would impose an unreasonable administrative burden) of
the amount of the support payments collected, and (B)
in any case in which support payments are collected for
an individual pursuant to the assignment made under
section 1912, such payments shall be made to the State
for distribution pursuant to section 1912, except that
this clause shall not apply to such payments for any
month after the month in which the individual ceases to
be eligible for medical assistance;
(6) provide that--
(A) services under the plan shall be made
available to residents of other States on the
same terms as to residents of the State
submitting the plan;
(B)(i) an application fee for furnishing such
services shall be imposed on an individual,
other than an individual receiving assistance
under a State program funded under part A or E,
or under a State plan approved under title XIX,
or who is required by the State to cooperate
with the State agency administering the program
under this part pursuant to subsection (l) or
(m) of section 6 of the Food and Nutrition Act
of 2008, and shall be paid by the individual
applying for such services, or recovered from
the absent parent, or paid by the State out of
its own funds (the payment of which from State
funds shall not be considered as an
administrative cost of the State for the
operation of the plan, and shall be considered
income to the program), the amount of which (I)
will not exceed $25 (or such higher or lower
amount (which shall be uniform for all States)
as the Secretary may determine to be
appropriate for any fiscal year to reflect
increases or decreases in administrative
costs), and (II) may vary among such
individuals on the basis of ability to pay (as
determined by the State); and
(ii) in the case of an individual who has
never received assistance under a State program
funded under part A and for whom the State has
collected at least $550 of support, the State
shall impose an annual fee of $35 for each case
in which services are furnished, which shall be
retained by the State from support collected on
behalf of the individual (but not from the
first $550 so collected), paid by the
individual applying for the services, recovered
from the absent parent, or paid by the State
out of its own funds (the payment of which from
State funds shall not be considered as an
administrative cost of the State for the
operation of the plan, and the fees shall be
considered income to the program);
(C) a fee of not more than $25 may be imposed
in any case where the State requests the
Secretary of the Treasury to withhold past-due
support owed to or on behalf of such individual
from a tax refund pursuant to section
464(a)(2);
(D) a fee (in accordance with regulations of
the Secretary) for performing genetic tests may
be imposed on any individual who is not a
recipient of assistance under a State program
funded under part A; and
(E) any costs in excess of the fees so
imposed may be collected--
(i) from the parent who owes the
child or spousal support obligation
involved; or
(ii) at the option of the State, from
the individual to whom such services
are made available, but only if such
State has in effect a procedure whereby
all persons in such State having
authority to order child or spousal
support are informed that such costs
are to be collected from the individual
to whom such services were made
available;
(7) provide for entering into cooperative
arrangements with appropriate courts and law
enforcement officials and Indian tribes or tribal
organizations (as defined in subsections (e) and (l) of
section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. [450b] 5304)) (A)
to assist the agency administering the plan, including
the entering into of financial arrangements with such
courts and officials in order to assure optimum results
under such program, and (B) with respect to any other
matters of common concern to such courts or officials
and the agency administering the plan;
(8) provide that, for the purpose of establishing
parentage, establishing, setting the amount of,
modifying, or enforcing child support obligations, or
making or enforcing a child custody or visitation
determination, as defined in section 463(d)(1) the
agency administering the plan will establish a service
to locate parents utilizing--
(A) all sources of information and available
records; and
(B) the Federal Parent Locator Service
established under section 453,
and shall, subject to the privacy safeguards required
under paragraph (26), disclose only the information
described in sections 453 and 463 to the authorized
persons specified in such sections for the purposes
specified in such sections;
(9) provide that the State will, in accordance with
standards prescribed by the Secretary, cooperate with
any other State--
(A) in establishing paternity, if necessary;
(B) in locating a noncustodial parent
residing in the State (whether or not
permanently) against whom any action is being
taken under a program established under a plan
approved under this part in another State;
(C) in securing compliance by a noncustodial
parent residing in such State (whether or not
permanently) with an order issued by a court of
competent jurisdiction against such parent for
the support and maintenance of the child or
children or the parent of such child or
children with respect to whom aid is being
provided under the plan of such other State;
(D) in carrying out other functions required
under a plan approved under this part; and
(E) not later than March 1, 1997, in using
the forms promulgated pursuant to section
452(a)(11) for income withholding, imposition
of liens, and issuance of administrative
subpoenas in interstate child support cases;
(10) provide that the State will maintain a full
record of collections and disbursements made under the
plan and have an adequate reporting system;
(11)(A) provide that amounts collected as support
shall be distributed as provided in section 457; and
(B) provide that any payment required to be made
under section 456 or 457 to a family shall be made to
the resident parent, legal guardian, or caretaker
relative having custody of or responsibility for the
child or children;
(12) provide for the establishment of procedures to
require the State to provide individuals who are
applying for or receiving services under the State
plan, or who are parties to cases in which services are
being provided under the State plan--
(A) with notice of all proceedings in which
support obligations might be established or
modified; and
(B) with a copy of any order establishing or
modifying a child support obligation, or (in
the case of a petition for modification) a
notice of determination that there should be no
change in the amount of the child support
award, within 14 days after issuance of such
order or determination;
(13) provide that the State will comply with such
other requirements and standards as the Secretary
determines to be necessary to the establishment of an
effective program for locating noncustodial parents,
establishing paternity, obtaining support orders, and
collecting support payments and provide that
information requests by parents who are residents of
other States be treated with the same priority as
requests by parents who are residents of the State
submitting the plan;
(14)(A) comply with such bonding requirements, for
employees who receive, disburse, handle, or have access
to, cash, as the Secretary shall by regulations
prescribe;
(B) maintain methods of administration which are
designed to assure that persons responsible for
handling cash receipts shall not participate in
accounting or operating functions which would permit
them to conceal in the accounting records the misuse of
cash receipts (except that the Secretary shall by
regulations provide for exceptions to this requirement
in the case of sparsely populated areas where the
hiring of unreasonable additional staff would otherwise
be necessary);
(15) provide for--
(A) a process for annual reviews of and
reports to the Secretary on the State program
operated under the State plan approved under
this part, including such information as may be
necessary to measure State compliance with
Federal requirements for expedited procedures,
using such standards and procedures as are
required by the Secretary, under which the
State agency will determine the extent to which
the program is operated in compliance with this
part; and
(B) a process of extracting from the
automated data processing system required by
paragraph (16) and transmitting to the
Secretary data and calculations concerning the
levels of accomplishment (and rates of
improvement) with respect to applicable
performance indicators (including paternity
establishment percentages) to the extent
necessary for purposes of sections 452(g) and
458;
(16) provide for the establishment and operation by
the State agency, in accordance with an (initial and
annually updated) advance automated data processing
planning document approved under section 452(d), of a
statewide automated data processing and information
retrieval system meeting the requirements of section
454A designed effectively and efficiently to assist
management in the administration of the State plan, so
as to control, account for, and monitor all the factors
in the support enforcement collection and paternity
determination process under such plan;
(17) provide that the State will have in effect an
agreement with the Secretary entered into pursuant to
section 463 for the use of the Parent Locator Service
established under section 453, and provide that the
State will accept and transmit to the Secretary
requests for information authorized under the
provisions of the agreement to be furnished by such
Service to authorized persons, will impose and collect
(in accordance with regulations of the Secretary) a fee
sufficient to cover the costs to the State and to the
Secretary incurred by reason of such requests, will
transmit to the Secretary from time to time (in
accordance with such regulations) so much of the fees
collected as are attributable to such costs to the
Secretary so incurred, and during the period that such
agreement is in effect will otherwise comply with such
agreement and regulations of the Secretary with respect
thereto;
(18) provide that the State has in effect procedures
necessary to obtain payment of past-due support from
overpayments made to the Secretary of the Treasury as
set forth in section 464, and take all steps necessary
to implement and utilize such procedures;
(19) provide that the agency administering the plan--
(A) shall determine on a periodic basis, from
information supplied pursuant to section 508 of
the Unemployment Compensation Amendments of
1976, whether any individuals receiving
compensation under the State's unemployment
compensation law (including amounts payable
pursuant to any agreement under any Federal
unemployment compensation law) owe child
support obligations which are being enforced by
such agency; and
(B) shall enforce any such child support
obligations which are owed by such an
individual but are not being met--
(i) through an agreement with such
individual to have specified amounts
withheld from compensation otherwise
payable to such individual and by
submitting a copy of any such agreement
to the State agency administering the
unemployment compensation law; or
(ii) in the absence of such an
agreement, by bringing legal process
(as defined in section 459(i)(5) of
this Act) to require the withholding of
amounts from such compensation;
(20) provide, to the extent required by section 466,
that the State (A) shall have in effect all of the laws
to improve child support enforcement effectiveness
which are referred to in that section, and (B) shall
implement the procedures which are prescribed in or
pursuant to such laws;
(21)(A) at the option of the State, impose a late
payment fee on all overdue support (as defined in
section 466(e)) under any obligation being enforced
under this part, in an amount equal to a uniform
percentage determined by the State (not less than 3
percent nor more than 6 percent) of the overdue
support, which shall be payable by the noncustodial
parent owing the overdue support; and
(B) assure that the fee will be collected in addition
to, and only after full payment of, the overdue
support, and that the imposition of the late payment
fee shall not directly or indirectly result in a
decrease in the amount of the support which is paid to
the child (or spouse) to whom, or on whose behalf, it
is owed;
(22) in order for the State to be eligible to receive
any incentive payments under section 458, provide that,
if one or more political subdivisions of the State
participate in the costs of carrying out activities
under the State plan during any period, each such
subdivision shall be entitled to receive an appropriate
share (as determined by the State) of any such
incentive payments made to the State for such period,
taking into account the efficiency and effectiveness of
the activities carried out under the State plan by such
political subdivision;
(23) provide that the State will regularly and
frequently publicize, through public service
announcements, the availability of child support
enforcement services under the plan and otherwise,
including information as to any application fees for
such services and a telephone number or postal address
at which further information may be obtained and will
publicize the availability and encourage the use of
procedures for voluntary establishment of paternity and
child support by means the State deems appropriate;
(24) provide that the State will have in effect an
automated data processing and information retrieval
system--
(A) by October 1, 1997, which meets all
requirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988; and
(B) by October 1, 2000, which meets all
requirements of this part enacted on or before
the date of the enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, except that such
deadline shall be extended by 1 day for each
day (if any) by which the Secretary fails to
meet the deadline imposed by section 344(a)(3)
of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996;
(25) provide that if a family with respect to which
services are provided under the plan ceases to receive
assistance under the State program funded under part A,
the State shall provide appropriate notice to the
family and continue to provide such services, subject
to the same conditions and on the same basis as in the
case of other individuals to whom services are
furnished under the plan, except that an application or
other request to continue services shall not be
required of such a family and paragraph (6)(B) shall
not apply to the family;
(26) have in effect safeguards, applicable to all
confidential information handled by the State agency,
that are designed to protect the privacy rights of the
parties, including--
(A) safeguards against unauthorized use or
disclosure of information relating to
proceedings or actions to establish paternity,
or to establish, or modify, or enforce support,
or to make or enforce a child custody
determination;
(B) prohibitions against the release of
information on the whereabouts of 1 party or
the child to another party against whom a
protective order with respect to the former
party or the child has been entered;
(C) prohibitions against the release of
information on the whereabouts of 1 party or
the child to another person if the State has
reason to believe that the release of the
information to that person may result in
physical or emotional harm to the party or the
child;
(D) in cases in which the prohibitions under
subparagraphs (B) and (C) apply, the
requirement to notify the Secretary, for
purposes of section 453(b)(2), that the State
has reasonable evidence of domestic violence or
child abuse against a party or the child and
that the disclosure of such information could
be harmful to the party or the child; and
(E) procedures providing that when the
Secretary discloses information about a parent
or child to a State court or an agent of a
State court described in section 453(c)(2) or
463(d)(2)(B), and advises that court or agent
that the Secretary has been notified that there
is reasonable evidence of domestic violence or
child abuse pursuant to section 453(b)(2), the
court shall determine whether disclosure to any
other person of information received from the
Secretary could be harmful to the parent or
child and, if the court determines that
disclosure to any other person could be
harmful, the court and its agents shall not
make any such disclosure;
(27) provide that, on and after October 1, 1998, the
State agency will--
(A) operate a State disbursement unit in
accordance with section 454B; and
(B) have sufficient State staff (consisting
of State employees) and (at State option)
contractors reporting directly to the State
agency to--
(i) monitor and enforce support
collections through the unit in cases
being enforced by the State pursuant to
section 454(4) (including carrying out
the automated data processing
responsibilities described in section
454A(g)); and
(ii) take the actions described in
section 466(c)(1) in appropriate cases;
(28) provide that, on and after October 1, 1997, the
State will operate a State Directory of New Hires in
accordance with section 453A;
(29) provide that the State agency responsible for
administering the State plan--
(A) shall make the determination (and
redetermination at appropriate intervals) as to
whether an individual who has applied for or is
receiving assistance under the State program
funded under part A, the State program under
part E, the State program under title XIX, or
the supplemental nutrition assistance program,
as defined under section 3(h) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012(h)), is
cooperating in good faith with the State in
establishing the paternity of, or in
establishing, modifying, or enforcing a support
order for, any child of the individual by
providing the State agency with the name of,
and such other information as the State agency
may require with respect to, the noncustodial
parent of the child, subject to good cause and
other exceptions which--
(i) in the case of the State program
funded under part A, the State program
under part E, or the State program
under title XIX shall, at the option of
the State, be defined, taking into
account the best interests of the
child, and applied in each case, by the
State agency administering such
program; and
(ii) in the case of the supplemental
nutrition assistance program, as
defined under section 3(h) of the Food
and Nutrition Act of 2008 (7 U.S.C.
2012(h)), shall be defined and applied
in each case under that program in
accordance with section 6(l)(2) of the
Food and Nutrition Act of 2008 (7
U.S.C. 2015(l)(2));
(B) shall require the individual to supply
additional necessary information and appear at
interviews, hearings, and legal proceedings;
(C) shall require the individual and the
child to submit to genetic tests pursuant to
judicial or administrative order;
(D) may request that the individual sign a
voluntary acknowledgment of paternity, after
notice of the rights and consequences of such
an acknowledgment, but may not require the
individual to sign an acknowledgment or
otherwise relinquish the right to genetic tests
as a condition of cooperation and eligibility
for assistance under the State program funded
under part A, the State program under part E,
the State program under title XIX, or the
supplemental nutrition assistance program, as
defined under section 3(h) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012(h)); and
(E) shall promptly notify the individual and
the State agency administering the State
program funded under part A, the State agency
administering the State program under part E,
the State agency administering the State
program under title XIX, or the State agency
administering the supplemental nutrition
assistance program, as defined under section
3(h) of the Food and Nutrition Act of 2008 (7
U.S.C. 2012(h)), of each such determination,
and if noncooperation is determined, the basis
therefor;
(30) provide that the State shall use the definitions
established under section 452(a)(5) in collecting and
reporting information as required under this part;
(31) provide that the State agency will have in
effect a procedure for certifying to the Secretary, for
purposes of the procedure under section 452(k),
determinations that individuals owe arrearages of child
support in an amount exceeding $2,500, under which
procedure--
(A) each individual concerned is afforded
notice of such determination and the
consequences thereof, and an opportunity to
contest the determination; and
(B) the certification by the State agency is
furnished to the Secretary in such format, and
accompanied by such supporting documentation,
as the Secretary may require;
(32)(A) provide that any request for services under
this part by a foreign reciprocating country, a foreign
treaty country, or a foreign country with which the
State has an arrangement described in section 459A(d)
shall be treated as a request by a State;
(B) provide, at State option, notwithstanding
paragraph (4) or any other provision of this part, for
services under the plan for enforcement of a spousal
support order not described in paragraph (4)(B) entered
by such a country (or subdivision); and
(C) provide that no applications will be required
from, and no costs will be assessed for such services
against, the foreign reciprocating country, foreign
treaty country, or foreign individual (but costs may at
State option be assessed against the obligor);
(33) provide that a State that receives funding
pursuant to section 428 and that has within its borders
Indian country (as defined in section 1151 of title 18,
United States Code) may enter into cooperative
agreements with an Indian tribe or tribal organization
(as defined in subsections (e) and (l) of section 4 of
the Indian Self-Determination and Education Assistance
Act (25 U.S.C. [450b] 5304)), if the Indian tribe or
tribal organization demonstrates that such tribe or
organization has an established tribal court system or
a Court of Indian Offenses with the authority to
establish paternity, establish, modify, or enforce
support orders, or to enter support orders in
accordance with child support guidelines established or
adopted by such tribe or organization, under which the
State and tribe or organization shall provide for the
cooperative delivery of child support enforcement
services in Indian country and for the forwarding of
all collections pursuant to the functions performed by
the tribe or organization to the State agency, or
conversely, by the State agency to the tribe or
organization, which shall distribute such collections
in accordance with such agreement; and
(34) include an election by the State to apply
section 457(a)(2)(B) of this Act or former section
457(a)(2)(B) of this Act (as in effect for the State
immediately before the date this paragraph first
applies to the State) to the distribution of the
amounts which are the subject of such sections and, for
so long as the State elects to so apply such former
section, the amendments made by subsection (b)(1) of
section 7301 of the Deficit Reduction Act of 2005 shall
not apply with respect to the State, notwithstanding
subsection (e) of such section 7301.
The State may allow the jurisdiction which makes the collection
involved to retain any application fee under paragraph (6)(B)
or any late payment fee under paragraph (21). Nothing in
paragraph (33) shall void any provision of any cooperative
agreement entered into before the date of the enactment of such
paragraph, nor shall such paragraph deprive any State of
jurisdiction over Indian country (as so defined) that is
lawfully exercised under section 402 of the Act entitled ``An
Act to prescribe penalties for certain acts of violence or
intimidation, and for other purposes'', approved April 11, 1968
(25 U.S.C. 1322).
* * * * * * *
COLLECTION OF PAST-DUE SUPPORT FROM FEDERAL TAX REFUNDS
Sec. 464. (a)(1) Upon receiving notice from a State agency
administering a plan approved under this part that a named
individual owes past-due support which has been assigned to
such State pursuant to section 408(a)(3) or section 471(a)(17),
the Secretary of the Treasury shall determine whether any
amounts, as refunds of Federal taxes paid, are payable to such
individual (regardless of whether such individual filed a tax
return as a married or unmarried individual). If the Secretary
of the Treasury finds that any such amount is payable, he shall
withhold from such refunds an amount equal to the past-due
support, shall concurrently send notice to such individual that
the withholding has been made (including in or with such notice
a notification to any other person who may have filed a joint
return with such individual of the steps which such other
person may take in order to secure his or her proper share of
the refund), and shall pay such amount to the State agency
(together with notice of the individual's home address) for
distribution in accordance with section 457. This subsection
may be executed by the disbursing official of the Department of
the Treasury.
(2)(A) Upon receiving notice from a State agency
administering a plan approved under this part that a named
individual owes past-due support which such State has agreed to
collect under paragraph (4)(A)(ii) or (32) of section 454, and
that the State agency has sent notice to such individual in
accordance with paragraph (3)(A), the Secretary of the Treasury
shall determine whether any amounts, as refunds of Federal
taxes paid, are payable to such individual (regardless of
whether such individual filed a tax return as a married or
unmarried individual). If the Secretary of the Treasury finds
that any such amount is payable, he shall withhold from such
refunds an amount equal to such past-due support, and shall
concurrently send notice to such individual that the
withholding has been made, including in or with such notice a
notification to any other person who may have filed a joint
return with such individual of the steps which such other
person may take in order to secure his or her proper share of
the refund. The Secretary of the Treasury shall pay the amount
withheld to the State agency, and the State shall pay to the
Secretary of the Treasury any fee imposed by the Secretary of
the Treasury to cover the costs of the withholding and any
required notification. The State agency shall, subject to
paragraph (3)(B), distribute such amount to or on behalf of the
child to whom the support was owed in accordance with section
457. This subsection may be executed by the Secretary of the
Department of the Treasury or his designee.
(B) This paragraph shall apply only with respect to refunds
payable under section 6402 of the Internal Revenue Code of 1954
after December 31, 1985.
(3)(A) Prior to notifying the Secretary of the Treasury under
paragraph (1) or (2) that an individual owes past-due support,
the State shall send notice to such individual that a
withholding will be made from any refund otherwise payable to
such individual. The notice shall also (i) instruct the
individual owing the past-due support of the steps which may be
taken to contest the State's determination that past-due
support is owed or the amount of the past-due support, and (ii)
provide information, as may be prescribed by the Secretary of
Health and Human Services by regulation in consultation with
the Secretary of the Treasury, with respect to procedures to be
followed, in the case of a joint return, to protect the share
of the refund which may be payable to another person.
(B) If the Secretary of the Treasury determines that an
amount should be withheld under paragraph (1) or (2), and that
the refund from which it should be withheld is based upon a
joint return, the Secretary of the Treasury shall notify the
State that the withholding is being made from a refund based
upon a joint return, and shall furnish to the State the names
and addresses of each taxpayer filing such joint return. In the
case of a withholding under paragraph (2), the State may delay
distribution of the amount withheld until the State has been
notified by the Secretary of the Treasury that the other person
filing the joint return has received his or her proper share of
the refund, but such delay may not exceed six months.
(C) If the other person filing the joint return with the
named individual owing the past-due support takes appropriate
action to secure his or her proper share of a refund from which
a withholding was made under paragraph (1) or (2), the
Secretary of the Treasury shall pay such share to such other
person. The Secretary of the Treasury shall deduct the amount
of such payment from amounts subsequently payable to the State
agency to which the amount originally withheld from such refund
was paid.
(D) In any case in which an amount was withheld under
paragraph (1) or (2) and paid to a State, and the State
subsequently determines that the amount certified as past-due
support was in excess of the amount actually owed at the time
the amount withheld is to be distributed to or on behalf of the
child, the State shall pay the excess amount withheld to the
named individual thought to have owed the past-due support (or,
in the case of amounts withheld on the basis of a joint return,
jointly to the parties filing such return).
(b)(1) The Secretary of the Treasury shall issue regulations,
approved by the Secretary of Health and Human Services,
prescribing the time or times at which States must submit
notices of past-due support, the manner in which such notices
must be submitted, and the necessary information that must be
contained in or accompany the notices. The regulations shall be
consistent with the provisions of subsection (a)(3), shall
specify the minimum amount of past-due support to which the
offset procedure established by subsection (a) may be applied,
and the fee that a State must pay to reimburse the Secretary of
the Treasury for the full cost of applying the offset
procedure, and shall provide that the Secretary of the Treasury
will advise the Secretary of Health and Human Services, not
less frequently than annually, of the States which have
furnished notices of past-due support under subsection (a), the
number of cases in each State with respect to which such
notices have been furnished, the amount of support sought to be
collected under this subsection by each State, and the amount
of such collections actually made in the case of each State.
Any fee paid to the Secretary of the Treasury pursuant to this
subsection may be used to reimburse appropriations which bore
all or part of the cost of applying such procedure.
(2) In the case of withholdings made under subsection (a)(2),
the regulations promulgated pursuant to this subsection shall
include the following requirements:
(A) The withholding shall apply only in the case
where the State determines that the amount of the past-
due support which will be owed at the time the
withholding is to be made, based upon the pattern of
payment of support and other enforcement actions being
pursued to collect the past-due support, is equal to or
greater than $500. The State may limit the $500
threshold amount to amounts of past-due support accrued
since the time that the State first began to enforce
the child support order involved under the State plan,
and may limit the application of the withholding to
past-due support accrued since such time.
(B) The fee which the Secretary of the Treasury may
impose to cover the costs of the withholding and
notification may not exceed $25 per case submitted.
(c) In this part the term ``past-due support'' means the
amount of a delinquency, determined under a court order, or an
order of an administrative process established under State law,
for support and maintenance of a child (whether or not a
minor), or of a child (whether or not a minor) and the parent
with whom the child is living.
(d) Applicability to Indian Tribes and Tribal Organizations
Receiving a Grant Under This Part.--This section, except for
the requirement to distribute amounts in accordance with
section 457, shall apply to an Indian tribe or tribal
organization receiving a grant under section 455(f) in the same
manner in which this section applies to a State with a plan
approved under this part.
* * * * * * *
----------
INTERNAL REVENUE CODE OF 1986
* * * * * * *
Subtitle F--Procedure and Administration
* * * * * * *
CHAPTER 61--INFORMATION AND RETURNS
* * * * * * *
Subchapter B--MISCELLANEOUS PROVISIONS
* * * * * * *
SEC. 6103. CONFIDENTIALITY AND DISCLOSURE OF RETURNS AND RE-
TURN INFORMATION.
(a) General rule.--Returns and return information shall be
confidential, and except as authorized by this title--
(1) no officer or employee of the United States,
(2) no officer or employee of any State, any local
law enforcement agency receiving information under
subsection (i)(1)(C) or (7)(A), [any local child
support enforcement agency] any tribal or local child
support enforcement agency, or any local agency
administering a program listed in subsection (l)(7)(D)
who has or had access to returns or return information
under this section or section 6104(c), and
(3)no other person (or officer or employee thereof)
who has or had access to returns or return information
under subsection (c), subsection (e)(1)(D)(iii),
paragraph (10), (13), (14), or (15) of subsection (k),
paragraph (6), (8), (10), (12), (13) (other than
subparagraphs (D)(v) and (D)(vi) thereof), (16), (19),
(20), or (21) of subsection (l), paragraph (2) or
(4)(B) of subsection (m), or subsection (n),
shall disclose any return or return information obtained by him
in any manner in connection with his service as such an officer
or an employee or otherwise or under the provisions of this
section. For purposes of this subsection, the term ``officer or
employee'' includes a former officer or employee.
(b) Definitions.--For purposes of this section--
(1) Return.--The term ``return'' means any tax or
information return, declaration of estimated tax, or
claim for refund required by, or provided for or
permitted under, the provisions of this title which is
filed with the Secretary by, on behalf of, or with
respect to any person, and any amendment or supplement
thereto, including supporting schedules, attachments,
or lists which are supplemental to, or part of, the
return so filed.
(2) Return information.--The term ``return
information'' means--
(A) a taxpayer's identity, the nature,
source, or amount of his income, payments,
receipts, deductions, exemptions, credits,
assets, liabilities, net worth, tax liability,
tax withheld, deficiencies, overassessments, or
tax payments, whether the taxpayer's return
was, is being, or will be examined or subject
to other investigation or processing, or any
other data, received by, recorded by, prepared
by, furnished to, or collected by the Secretary
with respect to a return or with respect to the
determination of the existence, or possible
existence, of liability (or the amount thereof)
of any person under this title for any tax,
penalty, interest, fine, forfeiture, or other
imposition, or offense,
(B) any part of any written determination or
any background file document relating to such
written determination (as such terms are
defined in section 6110(b)) which is not open
to public inspection under section 6110,
(C) any advance pricing agreement entered
into by a taxpayer and the Secretary and any
background information related to such
agreement or any application for an advance
pricing agreement, and
(D) any agreement under section 7121, and any
similar agreement, and any background
information related to such an agreement or
request for such an agreement,
but such term does not include data in a form which
cannot be associated with, or otherwise identify,
directly or indirectly, a particular taxpayer. Nothing
in the preceding sentence, or in any other provision of
law, shall be construed to require the disclosure of
standards used or to be used for the selection of
returns for examination, or data used or to be used for
determining such standards, if the Secretary determines
that such disclosure will seriously impair assessment,
collection, or enforcement under the internal revenue
laws.
(3) Taxpayer return information.--The term ``taxpayer
return information'' means return information as
defined in paragraph (2) which is filed with, or
furnished to, the Secretary by or on behalf of the
taxpayer to whom such return information relates.
(4) Tax administration.--The term ``tax
administration''--
(A) means--
(i) the administration, management,
conduct, direction, and supervision of
the execution and application of the
internal revenue laws or related
statutes (or equivalent laws and
statutes of a State) and tax
conventions to which the United States
is a party, and
(ii) the development and formulation
of Federal tax policy relating to
existing or proposed internal revenue
laws, related statutes, and tax
conventions, and
(B) includes assessment, collection,
enforcement, litigation, publication, and
statistical gathering functions under such
laws, statutes, or conventions.
(5) State.--
(A) In general.--The term ``State'' means--
(i) any of the 50 States, the
District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the
Commonwealth of the Northern Mariana
Islands,
(ii) for purposes of subsections
(a)(2), (b)(4), (d)(1), (h)(4), and
(p), any municipality--
(I) with a population in
excess of 250,000 (as
determined under the most
recent decennial United States
census data available),
(II) which imposes a tax on
income or wages, and
(III) with which the
Secretary (in his sole
discretion) has entered into an
agreement regarding disclosure,
and
(iii) for purposes of subsections
(a)(2), (b)(4), (d)(1), (h)(4), and
(p), any governmental entity--
(I) which is formed and
operated by a qualified group
of municipalities, and
(II) with which the Secretary
(in his sole discretion) has
entered into an agreement
regarding disclosure.
(B) Regional income tax agencies.--For
purposes of subparagraph (A)(iii)--
(i) Qualified group of
municipalities.--The term ``qualified
group of municipalities'' means, with
respect to any governmental entity, 2
or more municipalities--
(I) each of which imposes a
tax on income or wages,
(II) each of which, under the
authority of a State statute,
administers the laws relating
to the imposition of such taxes
through such entity, and
(III) which collectively have
a population in excess of
250,000 (as determined under
the most recent decennial
United States census data
available).
(ii) References to State law, etc..--
For purposes of applying subparagraph
(A)(iii) to the subsections referred to
in such subparagraph, any reference in
such subsections to State law,
proceedings, or tax returns shall be
treated as references to the law,
proceedings, or tax returns, as the
case may be, of the municipalities
which form and operate the governmental
entity referred to in such
subparagraph.
(iii) Disclosure to contractors and
other agents.--Notwithstanding any
other provision of this section, no
return or return information shall be
disclosed to any contractor or other
agent of a governmental entity referred
to in subparagraph (A)(iii) unless such
entity, to the satisfaction of the
Secretary--
(I) has requirements in
effect which require each such
contractor or other agent which
would have access to returns or
return information to provide
safeguards (within the meaning
of subsection (p)(4)) to
protect the confidentiality of
such returns or return
information,
(II) agrees to conduct an on-
site review every 3 years (or a
mid-point review in the case of
contracts or agreements of less
than 3 years in duration) of
each contractor or other agent
to determine compliance with
such requirements,
(III) submits the findings of
the most recent review
conducted under subclause (II)
to the Secretary as part of the
report required by subsection
(p)(4)(E), and
(IV) certifies to the
Secretary for the most recent
annual period that such
contractor or other agent is in
compliance with all such
requirements.
The certification required by subclause (IV)
shall include the name and address of each
contractor and other agent, a description of
the contract or agreement with such contractor
or other agent, and the duration of such
contract or agreement. The requirements of this
clause shall not apply to disclosures pursuant
to subsection (n) for purposes of Federal tax
administration and a rule similar to the rule
of subsection (p)(8)(B) shall apply for
purposes of this clause.
(6) Taxpayer identity.--The term ``taxpayer
identity'' means the name of a person with respect to
whom a return is filed, his mailing address, his
taxpayer identifying number (as described in section
6109), or a combination thereof.
(7) Inspection.--The terms ``inspected'' and
``inspection'' mean any examination of a return or
return information.
(8) Disclosure.--The term ``disclosure'' means the
making known to any person in any manner whatever a
return or return information.
(9) Federal agency.--The term ``Federal agency''
means an agency within the meaning of section 551(1) of
title 5, United States Code.
(10) Chief executive officer.--The term ``chief
executive officer'' means, with respect to any
municipality, any elected official and the chief
official (even if not elected) of such municipality.
(11) Terrorist incident, threat, or activity.--The
term ``terrorist incident, threat, or activity'' means
an incident, threat, or activity involving an act of
domestic terrorism (as defined in section 2331(5) of
title 18, United States Code) or international
terrorism (as defined in section 2331(1) of such
title).
(c) Disclosure of returns and return information to designee
of taxpayer.--The Secretary may, subject to such requirements
and conditions as he may prescribe by regulations, disclose the
return of any taxpayer, or return information with respect to
such taxpayer, to such person or persons as the taxpayer may
designate in a request for or consent to such disclosure, or to
any other person at the taxpayer's request to the extent
necessary to comply with a request for information or
assistance made by the taxpayer to such other person. However,
return information shall not be disclosed to such person or
persons if the Secretary determines that such disclosure would
seriously impair Federal tax administration. Persons designated
by the taxpayer under this subsection to receive return
information shall not use the information for any purpose other
than the express purpose for which consent was granted and
shall not disclose return information to any other person
without the express permission of, or request by, the taxpayer.
(d) Disclosure to State tax officials and State and local law
enforcement agencies.--
(1) In general.--Returns and return information with
respect to taxes imposed by chapters 1, 2, 6, 11, 12,
21, 23, 24, 31, 32, 44, 51, and 52 and subchapter D of
chapter 36 shall be open to inspection by, or
disclosure to, any State agency, body, or commission,
or its legal representative, which is charged under the
laws of such State with responsibility for the
administration of State tax laws for the purpose of,
and only to the extent necessary in, the administration
of such laws, including any procedures with respect to
locating any person who may be entitled to a refund.
Such inspection shall be permitted, or such disclosure
made, only upon written request by the head of such
agency, body, or commission, and only to the
representatives of such agency, body, or commission
designated in such written request as the individuals
who are to inspect or to receive the returns or return
information on behalf of such agency, body, or
commission. Such representatives shall not include any
individual who is the chief executive officer of such
State or who is neither an employee or legal
representative of such agency, body, or commission nor
a person described in subsection (n). However, such
return information shall not be disclosed to the extent
that the Secretary determines that such disclosure
would identify a confidential informant or seriously
impair any civil or criminal tax investigation.
(2) Disclosure to State audit agencies.--
(A) In general.--Any returns or return
information obtained under paragraph (1) by any
State agency, body, or commission may be open
to inspection by, or disclosure to, officers
and employees of the State audit agency for the
purpose of, and only to the extent necessary
in, making an audit of the State agency, body,
or commission referred to in paragraph (1).
(B) State audit agency.--For purposes of
subparagraph (A), the term ``State audit
agency'' means any State agency, body, or
commission which is charged under the laws of
the State with the responsibility of auditing
State revenues and programs.
(3) Exception for reimbursement under section 7624.--
Nothing in this section shall be construed to prevent
the Secretary from disclosing to any State or local law
enforcement agency which may receive a payment under
section 7624 the amount of the recovered taxes with
respect to which such a payment may be made.
(4) Availability and use of death information.--
(A) In general.--No returns or return
information may be disclosed under paragraph
(1) to any agency, body, or commission of any
State (or any legal representative thereof)
during any period during which a contract
meeting the requirements of subparagraph (B) is
not in effect between such State and the
Secretary of Health and Human Services.
(B) Contractual requirements.--A contract
meets the requirements of this subparagraph
if--
(i) such contract requires the State
to furnish the Secretary of Health and
Human Services information concerning
individuals with respect to whom death
certificates (or equivalent documents
maintained by the State or any
subdivision thereof) have been
officially filed with it, and
(ii) such contract does not include
any restriction on the use of
information obtained by such Secretary
pursuant to such contract, except that
such contract may provide that such
information is only to be used by the
Secretary (or any other Federal agency)
for purposes of ensuring that Federal
benefits or other payments are not
erroneously paid to deceased
individuals.
Any information obtained by the Secretary of
Health and Human Services under such a contract
shall be exempt from disclosure under section
552 of title 5, United States Code, and from
the requirements of section 552a of such title
5.
(C) Special exception.--The provisions of
subparagraph (A) shall not apply to any State
which on July 1, 1993, was not, pursuant to a
contract, furnishing the Secretary of Health
and Human Services information concerning
individuals with respect to whom death
certificates (or equivalent documents
maintained by the State or any subdivision
thereof) have been officially filed with it.
(5) Disclosure for combined employment tax
reporting.--
(A) In general.--The Secretary may disclose
taxpayer identity information and signatures to
any agency, body, or commission of any State
for the purpose of carrying out with such
agency, body, or commission a combined Federal
and State employment tax reporting program
approved by the Secretary. Subsections (a)(2)
and (p)(4) and sections 7213 and 7213A shall
not apply with respect to disclosures or
inspections made pursuant to this paragraph.
(B) Termination.--The Secretary may not make
any disclosure under this paragraph after
December 31, 2007.
(6) Limitation on disclosure regarding regional
income tax agencies treated as States.--For purposes of
paragraph (1), inspection by or disclosure to an entity
described in subsection (b)(5)(A)(iii) shall be for the
purpose of, and only to the extent necessary in, the
administration of the laws of the member municipalities
in such entity relating to the imposition of a tax on
income or wages. Such entity may not redisclose any
return or return information received pursuant to
paragraph (1) to any such member municipality.
(e) Disclosure to persons having material interest.--
(1) In general.--The return of a person shall, upon
written request, be open to inspection by or disclosure
to--
(A) in the case of the return of an
individual--
(i) that individual,
(ii) the spouse of that individual if
the individual and such spouse have
signified their consent to consider a
gift reported on such return as made
one-half by him and one-half by the
spouse pursuant to the provisions of
section 2513; or
(iii) the child of that individual
(or such child's legal representative)
to the extent necessary to comply with
the provisions of section 1(g);
(B) in the case of an income tax return filed
jointly, either of the individuals with respect
to whom the return is filed;
(C) in the case of the return of a
partnership, any person who was a member of
such partnership during any part of the period
covered by the return;
(D) in the case of the return of a
corporation or a subsidiary thereof--
(i) any person designated by
resolution of its board of directors or
other similar governing body,
(ii) any officer or employee of such
corporation upon written request signed
by any principal officer and attested
to by the secretary or other officer,
(iii) any bona fide shareholder of
record owning 1 percent or more of the
outstanding stock of such corporation,
(iv) if the corporation was an S
corporation, any person who was a
shareholder during any part of the
period covered by such return during
which an election under section 1362(a)
was in effect, or
(v) if the corporation has been
dissolved, any person authorized by
applicable State law to act for the
corporation or any person who the
Secretary finds to have a material
interest which will be affected by
information contained therein;
(E) in the case of the return of an estate--
(i) the administrator, executor, or
trustee of such estate, and
(ii) any heir at law, next of kin, or
beneficiary under the will, of the
decedent, but only if the Secretary
finds that such heir at law, next of
kin, or beneficiary has a material
interest which will be affected by
information contained therein; and
(F) in the case of the return of a trust--
(i) the trustee or trustees, jointly
or separately, and
(ii) any beneficiary of such trust,
but only if the Secretary finds that
such beneficiary has a material
interest which will be affected by
information contained therein.
(2) Incompetency.--If an individual described in
paragraph (1) is legally incompetent, the applicable
return shall, upon written request, be open to
inspection by or disclosure to the committee, trustee,
or guardian of his estate.
(3) Deceased individuals.--The return of a decedent
shall, upon written request, be open to inspection by
or disclosure to--
(A) the administrator, executor, or trustee
of his estate, and
(B) any heir at law, next of kin, or
beneficiary under the will, of such decedent,
or a donee of property, but only if the
Secretary finds that such heir at law, next of
kin, beneficiary, or donee has a material
interest which will be affected by information
contained therein.
(4) Title 11 cases and receivership proceedings.--
If--
(A) there is a trustee in a title 11 case in
which the debtor is the person with respect to
whom the return is filed, or
(B) substantially all of the property of the
person with respect to whom the return is filed
is in the hands of a receiver,
such return or returns for prior years of such person
shall, upon written request, be open to inspection by
or disclosure to such trustee or receiver, but only if
the Secretary finds that such trustee or receiver, in
his fiduciary capacity, has a material interest which
will be affected by information contained therein.
(5) Individual's title 11 case.--
(A) In general.--In any case to which section
1398 applies (determined without regard to
section 1398(b)(1)), any return of the debtor
for the taxable year in which the case
commenced or any preceding taxable year shall,
upon written request, be open to inspection by
or disclosure to the trustee in such case.
(B) Return of estate available to debtor.--
Any return of an estate in a case to which
section 1398 applies shall, upon written
request, be open to inspection by or disclosure
to the debtor in such case.
(C) Special rule for involuntary cases.--In
an involuntary case, no disclosure shall be
made under subparagraph (A) until the order for
relief has been entered by the court having
jurisdiction of such case unless such court
finds that such disclosure is appropriate for
purposes of determining whether an order for
relief should be entered.
(6) Attorney in fact.--Any return to which this
subsection applies shall, upon written request, also be
open to inspection by or disclosure to the attorney in
fact duly authorized in writing by any of the persons
described in paragraph (1), (2), (3), (4), (5), (8), or
(9) to inspect the return or receive the information on
his behalf, subject to the conditions provided in such
paragraphs.
(7) Return information.--Return information with
respect to any taxpayer may be open to inspection by or
disclosure to any person authorized by this subsection
to inspect any return of such taxpayer if the Secretary
determines that such disclosure would not seriously
impair Federal tax administration.
(8) Disclosure of collection activities with respect
to joint return.--If any deficiency of tax with respect
to a joint return is assessed and the individuals
filing such return are no longer married or no longer
reside in the same household, upon request in writing
by either of such individuals, the Secretary shall
disclose in writing to the individual making the
request whether the Secretary has attempted to collect
such deficiency from such other individual, the general
nature of such collection activities, and the amount
collected. The preceding sentence shall not apply to
any deficiency which may not be collected by reason of
section 6502.
(9) Disclosure of certain information where more than
1 person subject to penalty under section 6672.--If the
Secretary determines that a person is liable for a
penalty under section 6672(a) with respect to any
failure, upon request in writing of such person, the
Secretary shall disclose in writing to such person--
(A) the name of any other person whom the
Secretary has determined to be liable for such
penalty with respect to such failure, and
(B) whether the Secretary has attempted to
collect such penalty from such other person,
the general nature of such collection
activities, and the amount collected.
(10) Limitation on certain disclosures under this
subsection.--In the case of an inspection or disclosure
under this subsection relating to the return of a
partnership, S corporation, trust, or an estate, the
information inspected or disclosed shall not include
any supporting schedule, attachment, or list which
includes the taxpayer identity information of a person
other than the entity making the return or the person
conducting the inspection or to whom the disclosure is
made.
(11) Disclosure of information regarding status of
investigation of violation of this section.--In the
case of a person who provides to the Secretary
information indicating a violation of section 7213,
7213A, or 7214 with respect to any return or return
information of such person, the Secretary may disclose
to such person (or such person's designee)--
(A) whether an investigation based on the
person's provision of such information has been
initiated and whether it is open or closed,
(B) whether any such investigation
substantiated such a violation by any
individual, and
(C) whether any action has been taken with
respect to such individual (including whether a
referral has been made for prosecution of such
individual).
(f) Disclosure to Committees of Congress.--
(1) Committee on Ways and Means, Committee on
Finance, and Joint Committee on Taxation.--Upon written
request from the chairman of the Committee on Ways and
Means of the House of Representatives, the chairman of
the Committee on Finance of the Senate, or the chairman
of the Joint Committee on Taxation, the Secretary shall
furnish such committee with any return or return
information specified in such request, except that any
return or return information which can be associated
with, or otherwise identify, directly or indirectly, a
particular taxpayer shall be furnished to such
committee only when sitting in closed executive session
unless such taxpayer otherwise consents in writing to
such disclosure.
(2) Chief of Staff of Joint Committee on Taxation.--
Upon written request by the Chief of Staff of the Joint
Committee on Taxation, the Secretary shall furnish him
with any return or return information specified in such
request. Such Chief of Staff may submit such return or
return information to any committee described in
paragraph (1), except that any return or return
information which can be associated with, or otherwise
identify, directly or indirectly, a particular taxpayer
shall be furnished to such committee only when sitting
in closed executive session unless such taxpayer
otherwise consents in writing to such disclosure.
(3) Other committees.--Pursuant to an action by, and
upon written request by the chairman of, a committee of
the Senate or the House of Representatives (other than
a committee specified in paragraph (1)) specially
authorized to inspect any return or return information
by a resolution of the Senate or the House of
Representatives or, in the case of a joint committee
(other than the joint committee specified in paragraph
(1)) by concurrent resolution, the Secretary shall
furnish such committee, or a duly authorized and
designated subcommittee thereof, sitting in closed
executive session, with any return or return
information which such resolution authorizes the
committee or subcommittee to inspect. Any resolution
described in this paragraph shall specify the purpose
for which the return or return information is to be
furnished and that such information cannot reasonably
be obtained from any other source.
(4) Agents of committees and submission of
information to Senate or House of Representatives.--
(A) Committees described in paragraph (1).--
Any committee described in paragraph (1) or the
Chief of Staff of the Joint Committee on
Taxation shall have the authority, acting
directly, or by or through such examiners or
agents as the chairman of such committee or
such chief of staff may designate or appoint,
to inspect returns and return information at
such time and in such manner as may be
determined by such chairman or chief of staff.
Any return or return information obtained by or
on behalf of such committee pursuant to the
provisions of this subsection may be submitted
by the committee to the Senate or the House of
Representatives, or to both. The Joint
Committee on Taxation may also submit such
return or return information to any other
committee described in paragraph (1), except
that any return or return information which can
be associated with, or otherwise identify,
directly or indirectly, a particular taxpayer
shall be furnished to such committee only when
sitting in closed executive session unless such
taxpayer otherwise consents in writing to such
disclosure.
(B) Other committees.--Any committee or
subcommittee described in paragraph (3) shall
have the right, acting directly, or by or
through no more than four examiners or agents,
designated or appointed in writing in equal
numbers by the chairman and ranking minority
member of such committee or subcommittee, to
inspect returns and return information at such
time and in such manner as may be determined by
such chairman and ranking minority member. Any
return or return information obtained by or on
behalf of such committee or subcommittee
pursuant to the provisions of this subsection
may be submitted by the committee to the Senate
or the House of Representatives, or to both,
except that any return or return information
which can be associated with, or otherwise
identify, directly or indirectly, a particular
taxpayer, shall be furnished to the Senate or
the House of Representatives only when sitting
in closed executive session unless such
taxpayer otherwise consents in writing to such
disclosure.
(5) Disclosure by whistleblower.--Any person who
otherwise has or had access to any return or return
information under this section may disclose such return
or return information to a committee referred to in
paragraph (1) or any individual authorized to receive
or inspect information under paragraph (4)(A) if such
person believes such return or return information may
relate to possible misconduct, maladministration, or
taxpayer abuse.
(g) Disclosure to President and certain other persons.--
(1) In general.--Upon written request by the
President, signed by him personally, the Secretary
shall furnish to the President, or to such employee or
employees of the White House Office as the President
may designate by name in such request, a return or
return information with respect to any taxpayer named
in such request. Any such request shall state--
(A) the name and address of the taxpayer
whose return or return information is to be
disclosed,
(B) the kind of return or return information
which is to be disclosed,
(C) the taxable period or periods covered by
such return or return information, and
(D) the specific reason why the inspection or
disclosure is requested.
(2) Disclosure of return information as to
Presidential appointees and certain other Federal
Government appointees.--The Secretary may disclose to a
duly authorized representative of the Executive Office
of the President or to the head of any Federal agency,
upon written request by the President or head of such
agency, or to the Federal Bureau of Investigation on
behalf of and upon written request by the President or
such head, return information with respect to an
individual who is designated as being under
consideration for appointment to a position in the
executive or judicial branch of the Federal Government.
Such return information shall be limited to whether
such individual--
(A) has filed returns with respect to the
taxes imposed under chapter 1 for not more than
the immediately preceding 3 years;
(B) has failed to pay any tax within 10 days
after notice and demand, or has been assessed
any penalty under this title for negligence, in
the current year or immediately preceding 3
years;
(C) has been or is under investigation for
possible criminal offenses under the internal
revenue laws and the results of any such
investigation; or
(D) has been assessed any civil penalty under
this title for fraud.
Within 3 days of the receipt of any request for any
return information with respect to any individual under
this paragraph, the Secretary shall notify such
individual in writing that such information has been
requested under the provisions of this paragraph.
(3) Restriction on disclosure.--The employees to whom
returns and return information are disclosed under this
subsection shall not disclose such returns and return
information to any other person except the President or
the head of such agency without the personal written
direction of the President or the head of such agency.
(4) Restriction on disclosure to certain employees.--
Disclosure of returns and return information under this
subsection shall not be made to any employee whose
annual rate of basic pay is less than the annual rate
of basic pay specified for positions subject to section
5316 of title 5, United States Code.
(5) Reporting requirements.--Within 30 days after the
close of each calendar quarter, the President and the
head of any agency requesting returns and return
information under this subsection shall each file a
report with the Joint Committee on Taxation setting
forth the taxpayers with respect to whom such requests
were made during such quarter under this subsection,
the returns or return information involved, and the
reasons for such requests. The President shall not be
required to report on any request for returns and
return information pertaining to an individual who was
an officer or employee of the executive branch of the
Federal Government at the time such request was made.
Reports filed pursuant to this paragraph shall not be
disclosed unless the Joint Committee on Taxation
determines that disclosure thereof (including
identifying details) would be in the national interest.
Such reports shall be maintained by the Joint Committee
on Taxation for a period not exceeding 2 years unless,
within such period, the Joint Committee on Taxation
determines that a disclosure to the Congress is
necessary.
(h) Disclosure to certain Federal officers and employees for
purposes of tax administration, etc..--
(1) Department of the Treasury.--Returns and return
information shall, without written request, be open to
inspection by or disclosure to officers and employees
of the Department of the Treasury whose official duties
require such inspection or disclosure for tax
administration purposes.
(2) Department of Justice.--In a matter involving tax
administration, a return or return information shall be
open to inspection by or disclosure to officers and
employees of the Department of Justice (including
United States attorneys) personally and directly
engaged in, and solely for their use in, any proceeding
before a Federal grand jury or preparation for any
proceeding (or investigation which may result in such a
proceeding) before a Federal grand jury or any Federal
or State court, but only if--
(A) the taxpayer is or may be a party to the
proceeding, or the proceeding arose out of, or
in connection with, determining the taxpayer's
civil or criminal liability, or the collection
of such civil liability in respect of any tax
imposed under this title;
(B) the treatment of an item reflected on
such return is or may be related to the
resolution of an issue in the proceeding or
investigation; or
(C) such return or return information relates
or may relate to a transactional relationship
between a person who is or may be a party to
the proceeding and the taxpayer which affects,
or may affect, the resolution of an issue in
such proceeding or investigation.
(3) Form of request.--In any case in which the
Secretary is authorized to disclose a return or return
information to the Department of Justice pursuant to
the provisions of this subsection--
(A) if the Secretary has referred the case to
the Department of Justice, or if the proceeding
is authorized by subchapter B of chapter 76,
the Secretary may make such disclosure on his
own motion, or
(B) if the Secretary receives a written
request from the Attorney General, the Deputy
Attorney General, or an Assistant Attorney
General for a return of, or return information
relating to, a person named in such request and
setting forth the need for the disclosure, the
Secretary shall disclose return or return the
information so requested.
(4) Disclosure in judicial and administrative tax
proceedings.--A return or return information may be
disclosed in a Federal or State judicial or
administrative proceeding pertaining to tax
administration, but only--
(A) if the taxpayer is a party to the
proceeding, or the proceeding arose out of, or
in connection with, determining the taxpayer's
civil or criminal liability, or the collection
of such civil liability, in respect of any tax
imposed under this title;
(B) if the treatment of an item reflected on
such return is directly related to the
resolution of an issue in the proceeding;
(C) if such return or return information
directly relates to a transactional
relationship between a person who is a party to
the proceeding and the taxpayer which directly
affects the resolution of an issue in the
proceeding; or
(D) to the extent required by order of a
court pursuant to section 3500 of title 18,
United States Code, or rule 16 of the Federal
Rules of Criminal Procedure, such court being
authorized in the issuance of such order to
give due consideration to congressional policy
favoring the confidentiality of returns and
return information as set forth in this title.
However, such return or return information shall not be
disclosed as provided in subparagraph (A), (B), or (C)
if the Secretary determines that such disclosure would
identify a confidential informant or seriously impair a
civil or criminal tax investigation.
(5) Withholding of tax from social security
benefits.--Upon written request of the payor agency,
the Secretary may disclose available return information
from the master files of the Internal Revenue Service
with respect to the address and status of an individual
as a nonresident alien or as a citizen or resident of
the United States to the Social Security Administration
or the Railroad Retirement Board (whichever is
appropriate) for purposes of carrying out its
responsibilities for withholding tax under section 1441
from social security benefits (as defined in section
86(d)).
(6) Internal Revenue Service Oversight Board.--
(A) In general.--Notwithstanding paragraph
(1), and except as provided in subparagraph
(B), no return or return information may be
disclosed to any member of the Oversight Board
described in subparagraph (A) or (D) of section
7802(b)(1) or to any employee or detailee of
such Board by reason of their service with the
Board. Any request for information not
permitted to be disclosed under the preceding
sentence, and any contact relating to a
specific taxpayer, made by any such individual
to an officer or employee of the Internal
Revenue Service shall be reported by such
officer or employee to the Secretary, the
Treasury Inspector General for Tax
Administration, and the Joint Committee on
Taxation.
(B) Exception for reports to the Board.--If--
(i) the Commissioner or the Treasury
Inspector General for Tax
Administration prepares any report or
other matter for the Oversight Board in
order to assist the Board in carrying
out its duties; and
(ii) the Commissioner or such
Inspector General determines it is
necessary to include any return or
return information in such report or
other matter to enable the Board to
carry out such duties,
such return or return information (other than
information regarding taxpayer identity) may be
disclosed to members, employees, or detailees
of the Board solely for the purpose of carrying
out such duties.
(i) Disclosure to Federal officers or employees for
administration of Federal laws not relating to tax
administration.--
(1) Disclosure of returns and return information for
use in criminal investigations.--
(A) In general.--Except as provided in
paragraph (6), any return or return information
with respect to any specified taxable period or
periods shall, pursuant to and upon the grant
of an ex parte order by a Federal district
court judge or magistrate judge under
subparagraph (B), be open (but only to the
extent necessary as provided in such order) to
inspection by, or disclosure to, officers and
employees of any Federal agency who are
personally and directly engaged in--
(i) preparation for any judicial or
administrative proceeding pertaining to
the enforcement of a specifically
designated Federal criminal statute
(not involving tax administration) to
which the United States or such agency
is or may be a party, or pertaining to
the case of a missing or exploited
child,
(ii) any investigation which may
result in such a proceeding, or
(iii) any Federal grand jury
proceeding pertaining to enforcement of
such a criminal statute to which the
United States or such agency is or may
be a party, or to such a case of a
missing or exploited child,
solely for the use of such officers and
employees in such preparation, investigation,
or grand jury proceeding.
(B) Application for order.--The Attorney
General, the Deputy Attorney General, the
Associate Attorney General, any Assistant
Attorney General, any United States attorney,
any special prosecutor appointed under section
593 of title 28, United States Code, or any
attorney in charge of a criminal division
organized crime strike force established
pursuant to section 510 of title 28, United
States Code, may authorize an application to a
Federal district court judge or magistrate
judge for the order referred to in subparagraph
(A). Upon such application, such judge or
magistrate judge may grant such order if he
determines on the basis of the facts submitted
by the applicant that--
(i) there is reasonable cause to
believe, based upon information
believed to be reliable, that a
specific criminal act has been
committed,
(ii) there is reasonable cause to
believe that the return or return
information is or may be relevant to a
matter relating to the commission of
such act, and
(iii) the return or return
information is sought exclusively for
use in a Federal criminal investigation
or proceeding concerning such act (or
any criminal investigation or
proceeding, in the case of a matter
relating to a missing or exploited
child), and the information sought to
be disclosed cannot reasonably be
obtained, under the circumstances, from
another source.
(C) Disclosure to state and local law
enforcement agencies in the case of matters
pertaining to a missing or exploited child.--
(i) In general.--In the case of an
investigation pertaining to a missing
or exploited child, the head of any
Federal agency, or his designee, may
disclose any return or return
information obtained under subparagraph
(A) to officers and employees of any
State or local law enforcement agency,
but only if--
(I) such State or local law
enforcement agency is part of a
team with the Federal agency in
such investigation, and
(II) such information is
disclosed only to such officers
and employees who are
personally and directly engaged
in such investigation.
(ii) Limitation on use of
information.--Information disclosed
under this subparagraph shall be solely
for the use of such officers and
employees in locating the missing
child, in a grand jury proceeding, or
in any preparation for, or
investigation which may result in, a
judicial or administrative proceeding.
(iii) Missing child.--For purposes of
this subparagraph, the term ``missing
child'' shall have the meaning given
such term by section 403 of the Missing
Children's Assistance Act (42 U.S.C.
5772).
(iv) Exploited child.--For purposes
of this subparagraph, the term
``exploited child'' means a minor with
respect to whom there is reason to
believe that a specified offense
against a minor (as defined by section
111(7) of the Sex Offender Registration
and Notification Act (42 U.S.C.
16911(7))) 1 has or is
occurring.
(2) Disclosure of return information other than
taxpayer return information for use in criminal
investigations.--
(A) In general.--Except as provided in
paragraph (6), upon receipt by the Secretary of
a request which meets the requirements of
subparagraph (B) from the head of any Federal
agency or the Inspector General thereof, or, in
the case of the Department of Justice, the
Attorney General, the Deputy Attorney General,
the Associate Attorney General, any Assistant
Attorney General, the Director of the Federal
Bureau of Investigation, the Administrator of
the Drug Enforcement Administration, any United
States attorney, any special prosecutor
appointed under section 593 of title 28, United
States Code, or any attorney in charge of a
criminal division organized crime strike force
established pursuant to section 510 of title
28, United States Code, the Secretary shall
disclose return information (other than
taxpayer return information) to officers and
employees of such agency who are personally and
directly engaged in--
(i) preparation for any judicial or
administrative proceeding described in
paragraph (1)(A)(i),
(ii) any investigation which may
result in such a proceeding, or
(iii) any grand jury proceeding
described in paragraph (1)(A)(iii),
solely for the use of such officers and
employees in such preparation, investigation,
or grand jury proceeding.
(B) Requirements.--A request meets the
requirements of this subparagraph if the
request is in writing and sets forth--
(i) the name and address of the
taxpayer with respect to whom the
requested return information relates;
(ii) the taxable period or periods to
which such return information relates;
(iii) the statutory authority under
which the proceeding or investigation
described in subparagraph (A) is being
conducted; and
(iv) the specific reason or reasons
why such disclosure is, or may be,
relevant to such proceeding or
investigation.
(C) Taxpayer identity.--For purposes of this
paragraph, a taxpayer's identity shall not be
treated as taxpayer return information.
(3) Disclosure of return information to apprise
appropriate officials of criminal or terrorist
activities or emergency circumstances.--
(A) Possible violations of Federal criminal
law.--
(i) In general.--Except as provided
in paragraph (6), the Secretary may
disclose in writing return information
(other than taxpayer return
information) which may constitute
evidence of a violation of any Federal
criminal law (not involving tax
administration) to the extent necessary
to apprise the head of the appropriate
Federal agency charged with the
responsibility of enforcing such law.
The head of such agency may disclose
such return information to officers and
employees of such agency to the extent
necessary to enforce such law.
(ii) Taxpayer identity.--If there is
return information (other than taxpayer
return information) which may
constitute evidence of a violation by
any taxpayer of any Federal criminal
law (not involving tax administration),
such taxpayer's identity may also be
disclosed under clause (i).
(B) Emergency circumstances.--
(i) Danger of death or physical
injury.--Under circumstances involving
an imminent danger of death or physical
injury to any individual, the Secretary
may disclose return information to the
extent necessary to apprise appropriate
officers or employees of any Federal or
State law enforcement agency of such
circumstances.
(ii) Flight from Federal
prosecution.--Under circumstances
involving the imminent flight of any
individual from Federal prosecution,
the Secretary may disclose return
information to the extent necessary to
apprise appropriate officers or
employees of any Federal law
enforcement agency of such
circumstances.
(C) Terrorist activities, etc..--
(i) In general.--Except as provided
in paragraph (6), the Secretary may
disclose in writing return information
(other than taxpayer return
information) that may be related to a
terrorist incident, threat, or activity
to the extent necessary to apprise the
head of the appropriate Federal law
enforcement agency responsible for
investigating or responding to such
terrorist incident, threat, or
activity. The head of the agency may
disclose such return information to
officers and employees of such agency
to the extent necessary to investigate
or respond to such terrorist incident,
threat, or activity.
(ii) Disclosure to the Department of
Justice.--Returns and taxpayer return
information may also be disclosed to
the Attorney General under clause (i)
to the extent necessary for, and solely
for use in preparing, an application
under paragraph (7)(D).
(iii) Taxpayer identity.--For
purposes of this subparagraph, a
taxpayer's identity shall not be
treated as taxpayer return information.
(4) Use of certain disclosed returns and return
information in judicial or administrative
proceedings.--
(A) Returns and taxpayer return
information.--Except as provided in
subparagraph (C), any return or taxpayer return
information obtained under paragraph (1) or
(7)(C) may be disclosed in any judicial or
administrative proceeding pertaining to
enforcement of a specifically designated
Federal criminal statute or related civil
forfeiture (not involving tax administration)
to which the United States or a Federal agency
is a party--
(i) if the court finds that such
return or taxpayer return information
is probative of a matter in issue
relevant in establishing the commission
of a crime or the guilt or liability of
a party, or
(ii) to the extent required by order
of the court pursuant to section 3500
of title 18, United States Code, or
rule 16 of the Federal Rules of
Criminal Procedure.
(B) Return information (other than taxpayer
return information).--Except as provided in
subparagraph (C), any return information (other
than taxpayer return information) obtained
under paragraph (1), (2), (3)(A) or (C), or (7)
may be disclosed in any judicial or
administrative proceeding pertaining to
enforcement of a specifically designated
Federal criminal statute or related civil
forfeiture (not involving tax administration)
to which the United States or a Federal agency
is a party.
(C) Confidential informant; impairment of
investigations.--No return or return
information shall be admitted into evidence
under subparagraph (A)(i) or (B) if the
Secretary determines and notifies the Attorney
General or his delegate or the head of the
Federal agency that such admission would
identify a confidential informant or seriously
impair a civil or criminal tax investigation.
(D) Consideration of confidentiality
policy.--In ruling upon the admissibility of
returns or return information, and in the
issuance of an order under subparagraph
(A)(ii), the court shall give due consideration
to congressional policy favoring the
confidentiality of returns and return
information as set forth in this title.
(E) Reversible error.--The admission into
evidence of any return or return information
contrary to the provisions of this paragraph
shall not, as such, constitute reversible error
upon appeal of a judgment in the proceeding.
(5) Disclosure to locate fugitives from justice.--
(A) In general.--Except as provided in
paragraph (6), the return of an individual or
return information with respect to such
individual shall, pursuant to and upon the
grant of an ex parte order by a Federal
district court judge or magistrate judge under
subparagraph (B), be open (but only to the
extent necessary as provided in such order) to
inspection by, or disclosure to, officers and
employees of any Federal agency exclusively for
use in locating such individual.
(B) Application for order.--Any person
described in paragraph (1)(B) may authorize an
application to a Federal district court judge
or magistrate judge for an order referred to in
subparagraph (A). Upon such application, such
judge or magistrate judge may grant such order
if he determines on the basis of the facts
submitted by the applicant that--
(i) a Federal arrest warrant relating
to the commission of a Federal felony
offense has been issued for an
individual who is a fugitive from
justice,
(ii) the return of such individual or
return information with respect to such
individual is sought exclusively for
use in locating such individual, and
(iii) there is reasonable cause to
believe that such return or return
information may be relevant in
determining the location of such
individual.
(6) Confidential informants; impairment of
investigations.--The Secretary shall not disclose any
return or return information under paragraph (1), (2),
(3)(A) or (C), (5), (7), or (8) if the Secretary
determines (and, in the case of a request for
disclosure pursuant to a court order described in
paragraph (1)(B) or (5)(B), certifies to the court)
that such disclosure would identify a confidential
informant or seriously impair a civil or criminal tax
investigation.
(7) Disclosure upon request of information relating
to terrorist activities, etc..--
(A) Disclosure to law enforcement agencies.--
(i) In general.--Except as provided
in paragraph (6), upon receipt by the
Secretary of a written request which
meets the requirements of clause (iii),
the Secretary may disclose return
information (other than taxpayer return
information) to officers and employees
of any Federal law enforcement agency
who are personally and directly engaged
in the response to or investigation of
any terrorist incident, threat, or
activity.
(ii) Disclosure to State and local
law enforcement agencies.--The head of
any Federal law enforcement agency may
disclose return information obtained
under clause (i) to officers and
employees of any State or local law
enforcement agency but only if such
agency is part of a team with the
Federal law enforcement agency in such
response or investigation and such
information is disclosed only to
officers and employees who are
personally and directly engaged in such
response or investigation.
(iii) Requirements.--A request meets
the requirements of this clause if--
(I) the request is made by
the head of any Federal law
enforcement agency (or his
delegate) involved in the
response to or investigation of
any terrorist incident, threat,
or activity, and
(II) the request sets forth
the specific reason or reasons
why such disclosure may be
relevant to a terrorist
incident, threat, or activity.
(iv) Limitation on use of
information.--Information disclosed
under this subparagraph shall be solely
for the use of the officers and
employees to whom such information is
disclosed in such response or
investigation.
(v) Taxpayer identity.--For purposes
of this subparagraph, a taxpayer's
identity shall not be treated as
taxpayer return information.
(B) Disclosure to intelligence agencies.--
(i) In general.--Except as provided
in paragraph (6), upon receipt by the
Secretary of a written request which
meets the requirements of clause (ii),
the Secretary may disclose return
information (other than taxpayer return
information) to those officers and
employees of the Department of Justice,
the Department of the Treasury, and
other Federal intelligence agencies who
are personally and directly engaged in
the collection or analysis of
intelligence and counterintelligence
information or investigation concerning
any terrorist incident, threat, or
activity. For purposes of the preceding
sentence, the information disclosed
under the preceding sentence shall be
solely for the use of such officers and
employees in such investigation,
collection, or analysis.
(ii) Requirements.--A request meets
the requirements of this subparagraph
if the request--
(I) is made by an individual
described in clause (iii), and
(II) sets forth the specific
reason or reasons why such
disclosure may be relevant to a
terrorist incident, threat, or
activity.
(iii) Requesting individuals.--An
individual described in this
subparagraph is an individual--
(I) who is an officer or
employee of the Department of
Justice or the Department of
the Treasury who is appointed
by the President with the
advice and consent of the
Senate or who is the Director
of the United States Secret
Service, and
(II) who is responsible for
the collection and analysis of
intelligence and
counterintelligence information
concerning any terrorist
incident, threat, or activity.
(iv) Taxpayer identity.--For purposes
of this subparagraph, a taxpayer's
identity shall not be treated as
taxpayer return information.
(C) Disclosure under ex parte orders.--
(i) In general.--Except as provided
in paragraph (6), any return or return
information with respect to any
specified taxable period or periods
shall, pursuant to and upon the grant
of an ex parte order by a Federal
district court judge or magistrate
under clause (ii), be open (but only to
the extent necessary as provided in
such order) to inspection by, or
disclosure to, officers and employees
of any Federal law enforcement agency
or Federal intelligence agency who are
personally and directly engaged in any
investigation, response to, or analysis
of intelligence and counterintelligence
information concerning any terrorist
incident, threat, or activity. Return
or return information opened to
inspection or disclosure pursuant to
the preceding sentence shall be solely
for the use of such officers and
employees in the investigation,
response, or analysis, and in any
judicial, administrative, or grand jury
proceedings, pertaining to such
terrorist incident, threat, or
activity.
(ii) Application for order.--The
Attorney General, the Deputy Attorney
General, the Associate Attorney
General, any Assistant Attorney
General, or any United States attorney
may authorize an application to a
Federal district court judge or
magistrate for the order referred to in
clause (i). Upon such application, such
judge or magistrate may grant such
order if he determines on the basis of
the facts submitted by the applicant
that--
(I) there is reasonable cause
to believe, based upon
information believed to be
reliable, that the return or
return information may be
relevant to a matter relating
to such terrorist incident,
threat, or activity, and
(II) the return or return
information is sought
exclusively for use in a
Federal investigation,
analysis, or proceeding
concerning any terrorist
incident, threat, or activity.
(D) Special rule for ex parte disclosure by
the IRS.--
(i) In general.--Except as provided
in paragraph (6), the Secretary may
authorize an application to a Federal
district court judge or magistrate for
the order referred to in subparagraph
(C)(i). Upon such application, such
judge or magistrate may grant such
order if he determines on the basis of
the facts submitted by the applicant
that the requirements of subparagraph
(C)(ii)(I) are met.
(ii) Limitation on use of
information.--Information disclosed
under clause (i)--
(I) may be disclosed only to
the extent necessary to apprise
the head of the appropriate
Federal law enforcement agency
responsible for investigating
or responding to a terrorist
incident, threat, or activity,
and
(II) shall be solely for use
in a Federal investigation,
analysis, or proceeding
concerning any terrorist
incident, threat, or activity.
The head of such Federal agency may disclose
such information to officers and employees of
such agency to the extent necessary to
investigate or respond to such terrorist
incident, threat, or activity.
(8) Comptroller General.--
(A) Returns available for inspection.--Except
as provided in subparagraph (C), upon written
request by the Comptroller General of the
United States, returns and return information
shall be open to inspection by, or disclosure
to, officers and employees of the Government
Accountability Office for the purpose of, and
to the extent necessary in, making--
(i) an audit of the Internal Revenue
Service, the Bureau of Alcohol,
Tobacco, Firearms, and Explosives,
Department of Justice, or the Tax and
Trade Bureau, Department of the
Treasury, which may be required by
section 713 of title 31, United States
Code, or
(ii) any audit authorized by
subsection (p)(6),
except that no such officer or employee shall,
except to the extent authorized by subsection
(f) or (p)(6), disclose to any person, other
than another officer or employee of such office
whose official duties require such disclosure,
any return or return information described in
section 4424(a) in a form which can be
associated with, or otherwise identify,
directly or indirectly, a particular taxpayer,
nor shall such officer or employee disclose any
other return or return information, except as
otherwise expressly provided by law, to any
person other than such other officer or
employee of such office in a form which can be
associated with, or otherwise identify,
directly or indirectly, a particular taxpayer.
(B) Audits of other agencies.--
(i) In general.--Nothing in this
section shall prohibit any return or
return information obtained under this
title by any Federal agency (other than
an agency referred to in subparagraph
(A)) or by a Trustee as defined in the
District of Columbia Retirement
Protection Act of 1997, for use in any
program or activity from being open to
inspection by, or disclosure to,
officers and employees of the
Government Accountability Office if
such inspection or disclosure is--
(I) for purposes of, and to
the extent necessary in, making
an audit authorized by law of
such program or activity, and
(II) pursuant to a written
request by the Comptroller
General of the United States to
the head of such Federal
agency.
(ii) Information from Secretary.--If
the Comptroller General of the United
States determines that the returns or
return information available under
clause (i) are not sufficient for
purposes of making an audit of any
program or activity of a Federal agency
(other than an agency referred to in
subparagraph (A)), upon written request
by the Comptroller General to the
Secretary, returns and return
information (of the type authorized by
subsection (l) or (m) to be made
available to the Federal agency for use
in such program or activity) shall be
open to inspection by, or disclosure
to, officers and employees of the
Government Accountability Office for
the purpose of, and to the extent
necessary in, making such audit.
(iii) Requirement of notification
upon completion of audit.--Within 90
days after the completion of an audit
with respect to which returns or return
information were opened to inspection
or disclosed under clause (i) or (ii),
the Comptroller General of the United
States shall notify in writing the
Joint Committee on Taxation of such
completion. Such notice shall include--
(I) a description of the use
of the returns and return
information by the Federal
agency involved,
(II) such recommendations
with respect to the use of
returns and return information
by such Federal agency as the
Comptroller General deems
appropriate, and
(III) a statement on the
impact of any such
recommendations on
confidentiality of returns and
return information and the
administration of this title.
(iv) Certain restrictions made
applicable.--The restrictions contained
in subparagraph (A) on the disclosure
of any returns or return information
open to inspection or disclosed under
such subparagraph shall also apply to
returns and return information open to
inspection or disclosed under this
subparagraph.
(C) Disapproval by Joint Committee on
Taxation.--Returns and return information shall
not be open to inspection or disclosed under
subparagraph (A) or (B) with respect to an
audit--
(i) unless the Comptroller General of
the United States notifies in writing
the Joint Committee on Taxation of such
audit, and
(ii) if the Joint Committee on
Taxation disapproves such audit by a
vote of at least two-thirds of its
members within the 30-day period
beginning on the day the Joint
Committee on Taxation receives such
notice.
(j) Statistical use.--
(1) Department of Commerce.--Upon request in writing
by the Secretary of Commerce, the Secretary shall
furnish--
(A) such returns, or return information
reflected thereon, to officers and employees of
the Bureau of the Census, and
(B) such return information reflected on
returns of corporations to officers and
employees of the Bureau of Economic Analysis,
as the Secretary may prescribe by regulation for the
purpose of, but only to the extent necessary in, the
structuring of censuses and national economic accounts
and conducting related statistical activities
authorized by law.
(2) Federal Trade Commission.--Upon request in
writing by the Chairman of the Federal Trade
Commission, the Secretary shall furnish such return
information reflected on any return of a corporation
with respect to the tax imposed by chapter 1 to
officers and employees of the Division of Financial
Statistics of the Bureau of Economics of such
commission as the Secretary may prescribe by regulation
for the purpose of, but only to the extent necessary
in, administration by such division of legally
authorized economic surveys of corporations.
(3) Department of Treasury.--Returns and return
information shall be open to inspection by or
disclosure to officers and employees of the Department
of the Treasury whose official duties require such
inspection or disclosure for the purpose of, but only
to the extent necessary in, preparing economic or
financial forecasts, projections, analyses, and
statistical studies and conducting related activities.
Such inspection or disclosure shall be permitted only
upon written request which sets forth the specific
reason or reasons why such inspection or disclosure is
necessary and which is signed by the head of the bureau
or office of the Department of the Treasury requesting
the inspection or disclosure.
(4) Anonymous form.--No person who receives a return
or return information under this subsection shall
disclose such return or return information to any
person other than the taxpayer to whom it relates
except in a form which cannot be associated with, or
otherwise identify, directly or indirectly, a
particular taxpayer.
(5) Department of Agriculture.--Upon request in
writing by the Secretary of Agriculture, the Secretary
shall furnish such returns, or return information
reflected thereon, as the Secretary may prescribe by
regulation to officers and employees of the Department
of Agriculture whose official duties require access to
such returns or information for the purpose of, but
only to the extent necessary in, structuring,
preparing, and conducting the census of agriculture
pursuant to the Census of Agriculture Act of 1997
(Public Law 105-113).
(6) Congressional Budget Office.--Upon written
request by the Director of the Congressional Budget
Office, the Secretary shall furnish to officers and
employees of the Congressional Budget Office return
information for the purpose of, but only to the extent
necessary for, long-term models of the social security
and medicare programs.
(k) Disclosure of certain returns and return information for
tax administration purposes.--
(1) Disclosure of accepted offers-in-compromise.--
Return information shall be disclosed to members of the
general public to the extent necessary to permit
inspection of any accepted offer-in-compromise under
section 7122 relating to the liability for a tax
imposed by this title.
(2) Disclosure of amount of outstanding lien.--If a
notice of lien has been filed pursuant to section
6323(f), the amount of the outstanding obligation
secured by such lien may be disclosed to any person who
furnishes satisfactory written evidence that he has a
right in the property subject to such lien or intends
to obtain a right in such property.
(3) Disclosure of return information to correct
misstatements of fact.--The Secretary may, but only
following approval by the Joint Committee on Taxation,
disclose such return information or any other
information with respect to any specific taxpayer to
the extent necessary for tax administration purposes to
correct a misstatement of fact published or disclosed
with respect to such taxpayer's return or any
transaction of the taxpayer with the Internal Revenue
Service.
(4) Disclosure to competent authority under tax
convention.--A return or return information may be
disclosed to a competent authority of a foreign
government which has an income tax or gift and estate
tax convention, or other convention or bilateral
agreement relating to the exchange of tax information,
with the United States but only to the extent provided
in, and subject to the terms and conditions of, such
convention or bilateral agreement.
(5) State agencies regulating tax return preparers.--
Taxpayer identity information with respect to any tax
return preparer, and information as to whether or not
any penalty has been assessed against such tax return
preparer under section 6694, 6695, or 7216, may be
furnished to any agency, body, or commission lawfully
charged under any State or local law with the
licensing, registration, or regulation of tax return
preparers. Such information may be furnished only upon
written request by the head of such agency, body, or
commission designating the officers or employees to
whom such information is to be furnished. Information
may be furnished and used under this paragraph only for
purposes of the licensing, registration, or regulation
of tax return preparers.
(6) Disclosure by certain officers and employees for
investigative purposes.--An internal revenue officer or
employee and an officer or employee of the Office of
Treasury Inspector General for Tax Administration may,
in connection with his official duties relating to any
audit, collection activity, or civil or criminal tax
investigation or any other offense under the internal
revenue laws, disclose return information to the extent
that such disclosure is necessary in obtaining
information, which is not otherwise reasonably
available, with respect to the correct determination of
tax, liability for tax, or the amount to be collected
or with respect to the enforcement of any other
provision of this title. Such disclosures shall be made
only in such situations and under such conditions as
the Secretary may prescribe by regulation. This
paragraph shall not apply to any disclosure to an
individual providing information relating to any
purpose described in paragraph (1) or (2) of section
7623(a) which is made under paragraph (13)(A).
(7) Disclosure of excise tax registration
information.--To the extent the Secretary determines
that disclosure is necessary to permit the effective
administration of subtitle D, the Secretary may
disclose--
(A) the name, address, and registration
number of each person who is registered under
any provision of subtitle D (and, in the case
of a registered terminal operator, the address
of each terminal operated by such operator),
and
(B) the registration status of any person.
(8) Levies on certain government payments.--
(A) Disclosure of return information in
levies on Financial Management Service.--In
serving a notice of levy, or release of such
levy, with respect to any applicable government
payment, the Secretary may disclose to officers
and employees of the Financial Management
Service--
(i) return information, including
taxpayer identity information,
(ii) the amount of any unpaid
liability under this title (including
penalties and interest), and
(iii) the type of tax and tax period
to which such unpaid liability relates.
(B) Restriction on use of disclosed
information.--Return information disclosed
under subparagraph (A) may be used by officers
and employees of the Financial Management
Service only for the purpose of, and to the
extent necessary in, transferring levied funds
in satisfaction of the levy, maintaining
appropriate agency records in regard to such
levy or the release thereof, notifying the
taxpayer and the agency certifying such payment
that the levy has been honored, or in the
defense of any litigation ensuing from the
honor of such levy.
(C) Applicable government payment.--For
purposes of this paragraph, the term
``applicable government payment'' means--
(i) any Federal payment (other than a
payment for which eligibility is based
on the income or assets (or both) of a
payee) certified to the Financial
Management Service for disbursement,
and
(ii) any other payment which is
certified to the Financial Management
Service for disbursement and which the
Secretary designates by published
notice.
(9) Disclosure of information to administer section
6311.--The Secretary may disclose returns or return
information to financial institutions and others to the
extent the Secretary deems necessary for the
administration of section 6311. Disclosures of
information for purposes other than to accept payments
by checks or money orders shall be made only to the
extent authorized by written procedures promulgated by
the Secretary.
(10) Disclosure of certain returns and return
information to certain prison officials.--
(A) In general.--Under such procedures as the
Secretary may prescribe, the Secretary may
disclose to officers and employees of the
Federal Bureau of Prisons and of any State
agency charged with the responsibility for
administration of prisons any returns or return
information with respect to individuals
incarcerated in Federal or State prison systems
whom the Secretary has determined may have
filed or facilitated the filing of a false or
fraudulent return to the extent that the
Secretary determines that such disclosure is
necessary to permit effective Federal tax
administration.
(B) Disclosure to contractor-run prisons.--
Under such procedures as the Secretary may
prescribe, the disclosures authorized by
subparagraph (A) may be made to contractors
responsible for the operation of a Federal or
State prison on behalf of such Bureau or
agency.
(C) Restrictions on use of disclosed
information.--Any return or return information
received under this paragraph shall be used
only for the purposes of and to the extent
necessary in taking administrative action to
prevent the filing of false and fraudulent
returns, including administrative actions to
address possible violations of administrative
rules and regulations of the prison facility
and in administrative and judicial proceedings
arising from such administrative actions.
(D) Restrictions on redisclosure and
disclosure to legal representatives.--
Notwithstanding subsection (h)--
(i) Restrictions on redisclosure.--
Except as provided in clause (ii), any
officer, employee, or contractor of the
Federal Bureau of Prisons or of any
State agency charged with the
responsibility for administration of
prisons shall not disclose any
information obtained under this
paragraph to any person other than an
officer or employee or contractor of
such Bureau or agency personally and
directly engaged in the administration
of prison facilities on behalf of such
Bureau or agency.
(ii) Disclosure to legal
representatives.--The returns and
return information disclosed under this
paragraph may be disclosed to the duly
authorized legal representative of the
Federal Bureau of Prisons, State
agency, or contractor charged with the
responsibility for administration of
prisons, or of the incarcerated
individual accused of filing the false
or fraudulent return who is a party to
an action or proceeding described in
subparagraph (C), solely in preparation
for, or for use in, such action or
proceeding.
(11) Disclosure of return information to Department
of State for purposes of passport revocation under
section 7345.--
(A) In general.--The Secretary shall, upon
receiving a certification described in section
7345, disclose to the Secretary of State return
information with respect to a taxpayer who has
a seriously delinquent tax debt described in
such section. Such return information shall be
limited to--
(i) the taxpayer identity information
with respect to such taxpayer, and
(ii) the amount of such seriously
delinquent tax debt.
(B) Restriction on disclosure.--Return
information disclosed under subparagraph (A)
may be used by officers and employees of the
Department of State for the purposes of, and to
the extent necessary in, carrying out the
requirements of section 32101 of the FAST Act.
(12) Qualified tax collection contractors.--Persons
providing services pursuant to a qualified tax
collection contract under section 6306 may, if speaking
to a person who has identified himself or herself as
having the name of the taxpayer to which a tax
receivable (within the meaning of such section)
relates, identify themselves as contractors of the
Internal Revenue Service and disclose the business name
of the contractor, and the nature, subject, and reason
for the contact. Disclosures under this paragraph shall
be made only in such situations and under such
conditions as have been approved by the Secretary.
(13) Disclosure to whistleblowers.--
(A) In general.--The Secretary may disclose,
to any individual providing information
relating to any purpose described in paragraph
(1) or (2) of section 7623(a), return
information related to the investigation of any
taxpayer with respect to whom the individual
has provided such information, but only to the
extent that such disclosure is necessary in
obtaining information, which is not otherwise
reasonably available, with respect to the
correct determination of tax liability for tax,
or the amount to be collected with respect to
the enforcement of any other provision of this
title.
(B) Updates on whistleblower
investigations.--The Secretary shall disclose
to an individual providing information relating
to any purpose described in paragraph (1) or
(2) of section 7623(a) the following:
(i) Not later than 60 days after a
case for which the individual has
provided information has been referred
for an audit or examination, a notice
with respect to such referral.
(ii) Not later than 60 days after a
taxpayer with respect to whom the
individual has provided information has
made a payment of tax with respect to
tax liability to which such information
relates, a notice with respect to such
payment.
(iii) Subject to such requirements
and conditions as are prescribed by the
Secretary, upon a written request by
such individual--
(I) information on the status
and stage of any investigation
or action related to such
information, and
(II) in the case of a
determination of the amount of
any award under section
7623(b), the reasons for such
determination.
Clause (iii) shall not apply to any information
if the Secretary determines that disclosure of
such information would seriously impair Federal
tax administration. Information described in
clauses (i), (ii), and (iii) may be disclosed
to a designee of the individual providing such
information in accordance with guidance
provided by the Secretary.
(14) Disclosure of return information for purposes of
cybersecurity and the prevention of identity theft tax
refund fraud.--
(A) In general.--Under such procedures and
subject to such conditions as the Secretary may
prescribe, the Secretary may disclose specified
return information to specified ISAC
participants to the extent that the Secretary
determines such disclosure is in furtherance of
effective Federal tax administration relating
to the detection or prevention of identity
theft tax refund fraud, validation of taxpayer
identity, authentication of taxpayer returns,
or detection or prevention of cybersecurity
threats.
(B) Specified ISAC participants.--For
purposes of this paragraph--
(i) In general.--The term ``specified
ISAC participant'' means--
(I) any person designated by
the Secretary as having primary
responsibility for a function
performed with respect to the
information sharing and
analysis center described in
section 2003(a) of the Taxpayer
First Act, and
(II) any person subject to
the requirements of section
7216 and which is a participant
in such information sharing and
analysis center.
(ii) Information sharing agreement.--
Such term shall not include any person
unless such person has entered into a
written agreement with the Secretary
setting forth the terms and conditions
for the disclosure of information to
such person under this paragraph,
including requirements regarding the
protection and safeguarding of such
information by such person.
(C) Specified return information.--For
purposes of this paragraph, the term
``specified return information'' means--
(i) in the case of a return which is
in connection with a case of potential
identity theft refund fraud--
(I) in the case of such
return filed electronically,
the internet protocol address,
device identification, email
domain name, speed of
completion, method of
authentication, refund method,
and such other return
information related to the
electronic filing
characteristics of such return
as the Secretary may identify
for purposes of this subclause,
and
(II) in the case of such
return prepared by a tax return
preparer, identifying
information with respect to
such tax return preparer,
including the preparer taxpayer
identification number and
electronic filer identification
number of such preparer,
(ii) in the case of a return which is
in connection with a case of a identity
theft refund fraud which has been
confirmed by the Secretary (pursuant to
such procedures as the Secretary may
provide), the information referred to
in subclauses (I) and (II) of clause
(i), the name and taxpayer
identification number of the taxpayer
as it appears on the return, and any
bank account and routing information
provided for making a refund in
connection with such return, and
(iii) in the case of any
cybersecurity threat to the Internal
Revenue Service, information similar to
the information described in subclauses
(I) and (II) of clause (i) with respect
to such threat.
(D) Restriction on use of disclosed
information.--
(i) Designated third parties.--Any
return information received by a person
described in subparagraph (B)(i)(I)
shall be used only for the purposes of
and to the extent necessary in--
(I) performing the function
such person is designated to
perform under such
subparagraph,
(II) facilitating disclosures
authorized under subparagraph
(A) to persons described in
subparagraph (B)(i)(II), and
(III) facilitating
disclosures authorized under
subsection (d) to participants
in such information sharing and
analysis center.
(ii) Return preparers.--Any return
information received by a person
described in subparagraph (B)(i)(II)
shall be treated for purposes of
section 7216 as information furnished
to such person for, or in connection
with, the preparation of a return of
the tax imposed under chapter 1.
(E) Data protection and safeguards.--Return
information disclosed under this paragraph
shall be subject to such protections and
safeguards as the Secretary may require in
regulations or other guidance or in the written
agreement referred to in subparagraph (B)(ii).
Such written agreement shall include a
requirement that any unauthorized access to
information disclosed under this paragraph, and
any breach of any system in which such
information is held, be reported to the
Treasury Inspector General for Tax
Administration.
(15) Disclosures to Social Security Administration to
identify tax receivables not eligible for collection
pursuant to qualified tax collection contracts.--In the
case of any individual involved with a tax receivable
which the Secretary has identified for possible
collection pursuant to a qualified tax collection
contract (as defined in section 6306(b)), the Secretary
may disclose the taxpayer identity and date of birth of
such individual to officers, employees, and contractors
of the Social Security Administration to determine if
such tax receivable is not eligible for collection
pursuant to such a qualified tax collection contract by
reason of section 6306(d)(3)(E).
(l) Disclosure of returns and return information for purposes
other than tax administration.--
(1) Disclosure of certain returns and return
information to Social Security Administration and
Railroad Retirement Board.--The Secretary may, upon
written request, disclose returns and return
information with respect to--
(A) taxes imposed by chapters 2, 21, and 24,
to the Social Security Administration for
purposes of its administration of the Social
Security Act;
(B) a plan to which part I of subchapter D of
chapter 1 applies, to the Social Security
Administration for purposes of carrying out its
responsibility under section 1131 of the Social
Security Act, limited, however to return
information described in section 6057(d); and
(C) taxes imposed by chapter 22, to the
Railroad Retirement Board for purposes of its
administration of the Railroad Retirement Act.
(2) Disclosure of returns and return information to
the Department of Labor and Pension Benefit Guaranty
Corporation.--The Secretary may, upon written request,
furnish returns and return information to the proper
officers and employees of the Department of Labor and
the Pension Benefit Guaranty Corporation for purposes
of, but only to the extent necessary in, the
administration of titles I and IV of the Employee
Retirement Income Security Act of 1974.
(3) Disclosure that applicant for Federal loan has
tax delinquent account.--
(A) In general.--Upon written request, the
Secretary may disclose to the head of the
Federal agency administering any included
Federal loan program whether or not an
applicant for a loan under such program has a
tax delinquent account.
(B) Restriction on disclosure.--Any
disclosure under subparagraph (A) shall be made
only for the purpose of, and to the extent
necessary in, determining the creditworthiness
of the applicant for the loan in question.
(C) Included Federal loan program defined.--
For purposes of this paragraph, the term
``included Federal loan program'' means any
program under which the United States or a
Federal agency makes, guarantees, or insures
loans.
(4) Disclosure of returns and return information for
use in personnel or claimant representative matters.--
The Secretary may disclose returns and return
information--
(A) upon written request--
(i) to an employee or former employee
of the Department of the Treasury, or
to the duly authorized legal
representative of such employee or
former employee, who is or may be a
party to any administrative action or
proceeding affecting the personnel
rights of such employee or former
employee; or
(ii) to any person, or to the duly
authorized legal representative of such
person, whose rights are or may be
affected by an administrative action or
proceeding under section 330 of title
31, United States Code,
solely for use in the action or proceeding, or
in preparation for the action or proceeding,
but only to the extent that the Secretary
determines that such returns or return
information is or may be relevant and material
to the action or proceeding; or
(B) to officers and employees of the
Department of the Treasury for use in any
action or proceeding described in subparagraph
(A), or in preparation for such action or
proceeding, to the extent necessary to advance
or protect the interests of the United States.
(5) Social Security Administration.--Upon written
request by the Commissioner of Social Security, the
Secretary may disclose information returns filed
pursuant to part III of subchapter A of chapter 61 of
this subtitle for the purpose of--
(A) carrying out, in accordance with an
agreement entered into pursuant to section 232
of the Social Security Act, an effective return
processing program; or
(B) providing information regarding the
mortality status of individuals for
epidemiological and similar research in
accordance with section 1106(d) of the Social
Security Act.
(6) Disclosure of return information to Federal,
State, [and local] tribal, and local child support
enforcement agencies.--
(A) Return information from Internal Revenue
Service.--The Secretary may, upon written
request, disclose to the appropriate Federal,
State, [or local] tribal, or local child
support enforcement agency--
(i) available return information from
the master files of the Internal
Revenue Service relating to the social
security account number (or numbers, if
the individual involved has more than
one such number), address, filing
status, amounts and nature of income,
and the number of dependents reported
on any return filed by, or with respect
to, any individual with respect to whom
child support obligations are sought to
be established or enforced pursuant to
the provisions of part D of title IV of
the Social Security Act and with
respect to any individual to whom such
support obligations are owing, and
(ii) available return information
reflected on any return filed by, or
with respect to, any individual
described in clause (i) relating to the
amount of such individual's gross
income (as defined in section 61) or
consisting of the names and addresses
of payors of such income and the names
of any dependents reported on such
return, but only if such return
information is not reasonably available
from any other source.
(B) Disclosure to certain agents.--[The
following] The information disclosed to any
child support enforcement agency under
subparagraph (A) with respect to any individual
with respect to whom child support obligations
are sought to be established or enforced may be
disclosed by such agency to any agent of such
agency which is under contract with such agency
to carry out the purposes described in
subparagraph (C)[:].
[(i) The address and social security
account number (or numbers) of such
individual.
[(ii) The amount of any reduction
under section 6402(c) (relating to
offset of past-due support against
overpayments) in any overpayment
otherwise payable to such individual.]
(C) Restriction on disclosure.--Information
may be disclosed under this paragraph only for
purposes of, and to the extent necessary in,
establishing and collecting child support
obligations from, and locating, individuals
owing such obligations.
(D) State, tribal, or local child support
enforcement agency.--For purposes of this
paragraph, the following shall be treated as a
State, tribal, or local child support
enforcement agency:
(i) Any agency of a State or
political subdivision thereof operating
pursuant to a plan described in section
454 of the Social Security Act which
has been approved by the Secretary of
Health and Human Services under part D
of title IV of such Act.
(ii) Any child support enforcement
agency of an Indian tribe or tribal
organization receiving a grant under
section 455(f) of the Social Security
Act.
(7) Disclosure of return information to Federal,
State, and local agencies administering certain
programs under the Social Security Act, the Food and
Nutrition Act of 2008, or title 38, United States Code,
or certain housing assistance programs.--
(A) Return information from Social Security
Administration.--The Commissioner of Social
Security shall, upon written request, disclose
return information from returns with respect to
net earnings from self-employment (as defined
in section 1402), wages (as defined in section
3121(a) or 3401(a)), and payments of retirement
income, which have been disclosed to the Social
Security Administration as provided by
paragraph (1) or (5) of this subsection, to any
Federal, State, or local agency administering a
program listed in subparagraph (D).
(B) Return information from Internal Revenue
Service.--The Secretary shall, upon written
request, disclose current return information
from returns with respect to unearned income
from the Internal Revenue Service files to any
Federal, State, or local agency administering a
program listed in subparagraph (D).
(C) Restriction on disclosure.--The
Commissioner of Social Security and the
Secretary shall disclose return information
under subparagraphs (A) and (B) only for
purposes of, and to the extent necessary in,
determining eligibility for, or the correct
amount of, benefits under a program listed in
subparagraph (D).
(D) Programs to which rule applies.--The
programs to which this paragraph applies are:
(i) a State program funded under part
A of title IV of the Social Security
Act;
(ii) medical assistance provided
under a State plan approved under title
XIX of the Social Security Act or
subsidies provided under section 1860D-
14 of such Act;
(iii) supplemental security income
benefits provided under title XVI of
the Social Security Act, and federally
administered supplementary payments of
the type described in section 1616(a)
of such Act (including payments
pursuant to an agreement entered into
under section 212(a) of Public Law 93-
66);
(iv) any benefits provided under a
State plan approved under title I, X,
XIV, or XVI of the Social Security Act
(as those titles apply to Puerto Rico,
Guam, and the Virgin Islands);
(v) unemployment compensation
provided under a State law described in
section 3304 of this title;
(vi) assistance provided under the
Food and Nutrition Act of 2008;
(vii) State-administered
supplementary payments of the type
described in section 1616(a) of the
Social Security Act (including payments
pursuant to an agreement entered into
under section 212(a) of Public Law 93-
66);
(viii)(I) any needs-based pension
provided under chapter 15 of title 38,
United States Code, or under any other
law administered by the Secretary of
Veterans Affairs;
(II) parents' dependency and
indemnity compensation provided under
section 1315 of title 38, United States
Code;
(III) health-care services furnished
under sections 1710(a)(2)(G),
1710(a)(3), and 1710(b) of such title;
and
(IV) compensation paid under chapter
11 of title 38, United States Code, at
the 100 percent rate based solely on
unemployability and without regard to
the fact that the disability or
disabilities are not rated as 100
percent disabling under the rating
schedule; and
(ix) any housing assistance program
administered by the Department of
Housing and Urban Development that
involves initial and periodic review of
an applicant's or participant's income,
except that return information may be
disclosed under this clause only on
written request by the Secretary of
Housing and Urban Development and only
for use by officers and employees of
the Department of Housing and Urban
Development with respect to applicants
for and participants in such programs.
Only return information from returns with
respect to net earnings from self-employment
and wages may be disclosed under this paragraph
for use with respect to any program described
in clause (viii)(IV).
(8) Disclosure of certain return information by
Social Security Administration to Federal, State, [and
local] tribal, and local child support enforcement
agencies.--
(A) In general.--Upon written request, the
Commissioner of Social Security shall disclose
directly to officers and employees of a Federal
[or State or local] , State, tribal, or local
child support enforcement agency return
information from returns with respect to social
security account numbers, net earnings from
self-employment (as defined in section 1402),
wages (as defined in section 3121(a) or
3401(a)), and payments of retirement income
which have been disclosed to the Social
Security Administration as provided by
paragraph (1) or (5) of this subsection.
(B) Restriction on disclosure.--The
Commissioner of Social Security shall disclose
return information under subparagraph (A) only
for purposes of, and to the extent necessary
in, establishing and collecting child support
obligations from, and locating, individuals
owing such obligations. For purposes of the
preceding sentence, the term ``child support
obligations'' only includes obligations which
are being [enforced pursuant to a plan
described in section 454 of the Social Security
Act which has been approved by the Secretary of
Health and Human Services under part D of title
IV of such Act] enforced pursuant to the
provisions of part D of title IV of the Social
Security Act. The information disclosed to any
child support enforcement agency under
subparagraph (A) with respect to any individual
with respect to whom child support obligations
are sought to be established or enforced may be
disclosed by such agency to any agent of such
agency which is under contract with such agency
for purposes of, and to the extent necessary
in, establishing and collecting child support
obligations from, and locating, individuals
owing such obligations.
[(C) State or local child support enforcement
agency.--For purposes of this paragraph, the
term ``State or local child support enforcement
agency'' means any agency of a State or
political subdivision thereof operating
pursuant to a plan described in subparagraph
(B).]
(C) State, tribal, or local child support
enforcement agency.--For purposes of this
paragraph, the term ``State, tribal, or local
child support enforcement agency'' has the same
meaning as when used in paragraph (6)(D).
(9) Disclosure of alcohol fuel producers to
administrators of State alcohol laws.--Notwithstanding
any other provision of this section, the Secretary may
disclose--
(A) the name and address of any person who is
qualified to produce alcohol for fuel use under
section 5181, and
(B) the location of any premises to be used
by such person in producing alcohol for fuel,
to any State agency, body, or commission, or its legal
representative, which is charged under the laws of such
State with responsibility for administration of State
alcohol laws solely for use in the administration of
such laws.
(10) Disclosure of certain information to agencies
requesting a reduction under subsection (c), (d), (e),
or (f) of section 6402.--
(A) Return information from Internal Revenue
Service.--The Secretary may, upon receiving a
written request, disclose to officers and
employees of any agency seeking a reduction
under subsection (c), (d), (e), or (f) of
section 6402, to officers and employees of the
Department of Labor for purposes of
facilitating the exchange of data in connection
with a notice submitted under subsection
(f)(5)(C) of section 6402, and to officers and
employees of the Department of the Treasury in
connection with such reduction--
(i) taxpayer identity information
with respect to the taxpayer against
whom such a reduction was made or not
made and with respect to any other
person filing a joint return with such
taxpayer,
(ii) the fact that a reduction has
been made or has not been made under
such subsection with respect to such
taxpayer,
(iii) the amount of such reduction,
(iv) whether such taxpayer filed a
joint return, and
(v) the fact that a payment was made
(and the amount of the payment) to the
spouse of the taxpayer on the basis of
a joint return.
(B) Restriction on use of disclosed
information.--(i) Any officers and employees of
an agency receiving return information under
subparagraph (A) shall use such information
only for the purposes of, and to the extent
necessary in, establishing appropriate agency
records, locating any person with respect to
whom a reduction under subsection (c), (d),
(e), or (f) of section 6402 is sought for
purposes of collecting the debt with respect to
which the reduction is sought, or in the
defense of any litigation or administrative
procedure ensuing from a reduction made under
subsection (c), (d), (e), or (f) of section
6402.
(ii) Notwithstanding clause (i), return
information disclosed to officers and employees
of the Department of Labor may be accessed by
agents who maintain and provide technological
support to the Department of Labor's Interstate
Connection Network (ICON) solely for the
purpose of providing such maintenance and
support.
(iii) The information disclosed to any child
support enforcement agency under subparagraph
(A) with respect to any individual with respect
to whom child support obligations are sought to
be established or enforced may be disclosed by
such agency to any agent of such agency which
is under contract with such agency for purposes
of, and to the extent necessary in,
establishing and collecting child support
obligations from, and locating, individuals
owing such obligations.
(11) Disclosure of return information to carry out
Federal Employees' Retirement System.--
(A) In general.--The Commissioner of Social
Security shall, on written request, disclose to
the Office of Personnel Management return
information from returns with respect to net
earnings from self-employment (as defined in
section 1402), wages (as defined in section
3121(a) or 3401(a)), and payments of retirement
income, which have been disclosed to the Social
Security Administration as provided by
paragraph (1) or (5).
(B) Restriction on disclosure.--The
Commissioner of Social Security shall disclose
return information under subparagraph (A) only
for purposes of, and to the extent necessary
in, the administration of chapters 83 and 84 of
title 5, United States Code.
(12) Disclosure of certain taxpayer identity
information for verification of employment status of
medicare beneficiary and spouse of medicare
beneficiary.--
(A) Return information from Internal Revenue
Service.--The Secretary shall, upon written
request from the Commissioner of Social
Security, disclose to the Commissioner
available filing status and taxpayer identity
information from the individual master files of
the Internal Revenue Service relating to
whether any medicare beneficiary identified by
the Commissioner was a married individual (as
defined in section 7703) for any specified year
after 1986, and, if so, the name of the spouse
of such individual and such spouse's TIN.
(B) Return information from Social Security
Administration.--The Commissioner of Social
Security shall, upon written request from the
Administrator of the Centers for Medicare &
Medicaid Services, disclose to the
Administrator the following information:
(i) The name and TIN of each medicare
beneficiary who is identified as having
received wages (as defined in section
3401(a)), above an amount (if any)
specified by the Secretary of Health
and Human Services, from a qualified
employer in a previous year.
(ii) For each medicare beneficiary
who was identified as married under
subparagraph (A) and whose spouse is
identified as having received wages,
above an amount (if any) specified by
the Secretary of Health and Human
Services, from a qualified employer in
a previous year--
(I) the name and TIN of the
medicare beneficiary, and
(II) the name and TIN of the
spouse.
(iii) With respect to each such
qualified employer, the name, address,
and TIN of the employer and the number
of individuals with respect to whom
written statements were furnished under
section 6051 by the employer with
respect to such previous year.
(C) Disclosure by Centers for Medicare &
Medicaid Services.--With respect to the
information disclosed under subparagraph (B),
the Administrator of the Centers for Medicare &
Medicaid Services may disclose--
(i) to the qualified employer
referred to in such subparagraph the
name and TIN of each individual
identified under such subparagraph as
having received wages from the employer
(hereinafter in this subparagraph
referred to as the ``employee'') for
purposes of determining during what
period such employee or the employee's
spouse may be (or have been) covered
under a group health plan of the
employer and what benefits are or were
covered under the plan (including the
name, address, and identifying number
of the plan),
(ii) to any group health plan which
provides or provided coverage to such
an employee or spouse, the name of such
employee and the employee's spouse (if
the spouse is a medicare beneficiary)
and the name and address of the
employer, and, for the purpose of
presenting a claim to the plan--
(I) the TIN of such employee
if benefits were paid under
title XVIII of the Social
Security Act with respect to
the employee during a period in
which the plan was a primary
plan (as defined in section
1862(b)(2)(A) of the Social
Security Act), and
(II) the TIN of such spouse
if benefits were paid under
such title with respect to the
spouse during such period, and
(iii) to any agent of such
Administrator the information referred
to in subparagraph (B) for purposes of
carrying out clauses (i) and (ii) on
behalf of such Administrator.
(D) Special rules.--
(i) Restrictions on disclosure.--
Information may be disclosed under this
paragraph only for purposes of, and to
the extent necessary in, determining
the extent to which any medicare
beneficiary is covered under any group
health plan.
(ii) Timely response to requests.--
Any request made under subparagraph (A)
or (B) shall be complied with as soon
as possible but in no event later than
120 days after the date the request was
made.
(E) Definitions.--For purposes of this
paragraph--
(i) Medicare beneficiary.--The term
``medicare beneficiary'' means an
individual entitled to benefits under
part A, or enrolled under part B, of
title XVIII of the Social Security Act,
but does not include such an individual
enrolled in part A under section 1818.
(ii) Group health plan.--The term
``group health plan'' means any group
health plan (as defined in section
5000(b)(1)).
(iii) Qualified employer.--The term
``qualified employer'' means, for a
calendar year, an employer which has
furnished written statements under
section 6051 with respect to at least
20 individuals for wages paid in the
year.
(13) Disclosure of return information to carry out
the Higher Education Act of 1965.--
(A) Applications and recertifications for
income-contingent or income-based repayment.--
The Secretary shall, upon written request from
the Secretary of Education, disclose to any
authorized person, only for the purpose of (and
to the extent necessary in) determining
eligibility for, or repayment obligations
under, income-contingent or income-based
repayment plans under title IV of the Higher
Education Act of 1965 with respect to loans
under part D of such title, the following
return information from returns (for any
taxable year specified by the Secretary of
Education as relevant to such purpose) of an
individual certified by the Secretary of
Education as having provided approval under
section 494(a)(2) of such Act (as in effect on
the date of enactment of this paragraph) for
such disclosure:
(i) Taxpayer identity information.
(ii) Filing status.
(iii) Adjusted gross income.
(iv) Total number of exemptions
claimed, if applicable.
(v) Number of dependents taken into
account in determining the credit
allowed under section 24.
(vi) If applicable, the fact that
there was no return filed.
(B) Discharge of loan based on total and
permanent disability.--The Secretary shall,
upon written request from the Secretary of
Education, disclose to any authorized person,
only for the purpose of (and to the extent
necessary in) monitoring and reinstating loans
under title IV of the Higher Education Act of
1965 that were discharged based on a total and
permanent disability (within the meaning of
section 437(a) of such Act), the following
return information from returns (for any
taxable year specified by the Secretary of
Education as relevant to such purpose) of an
individual certified by the Secretary of
Education as having provided approval under
section 494(a)(3) of such Act (as in effect on
the date of enactment of this paragraph) for
such disclosure:
(i) The return information described
in clauses (i), (ii), and (vi) of
subparagraph (A).
(ii) The return information described
in subparagraph (C)(ii).
(C) Federal student financial aid.--The
Secretary shall, upon written request from the
Secretary of Education, disclose to any
authorized person, only for the purpose of (and
to the extent necessary in) determining
eligibility for, and amount of, Federal student
financial aid under a program authorized under
subpart 1 of part A, part C, or part D of title
IV of the Higher Education Act of 1965 the
following return information from returns (for
the taxable year used for purposes of section
480(a) of such Act) of an individual certified
by the Secretary of Education as having
provided approval under section 494(a)(1) of
such Act (as in effect on the date of enactment
of this paragraph) for such disclosure:
(i) Return information described in
clauses (i) through (vi) of
subparagraph (A).
(ii) The amount of any net earnings
from self-employment (as defined in
section 1402(a)), wages (as defined in
section 3121(a) or 3401(a)), and
taxable income from a farming business
(as defined in section 263A(e)(4)).
(iii) Amount of total income tax.
(iv) Amount of any credit allowed
under section 25A.
(v) Amount of individual retirement
account distributions not included in
adjusted gross income.
(vi) Amount of individual retirement
account contributions and payments to
self-employed SEP, Keogh, and other
qualified plans which were deducted
from income.
(vii) Amount of tax-exempt interest
received.
(viii) Amounts from retirement
pensions and annuities not included in
adjusted gross income.
(ix) If applicable, the fact that any
of the following schedules (or
equivalent successor schedules) were
filed with the return:
(I) Schedule A.
(II) Schedule B.
(III) Schedule D.
(IV) Schedule E.
(V) Schedule F.
(VI) Schedule H.
(x) If applicable, the amount
reported on Schedule C (or an
equivalent successor schedule) as net
profit or loss.
(D) Additional uses of disclosed
information.--
(i) In general.--In addition to the
purposes for which information is
disclosed under subparagraphs (A), (B),
and (C), return information so
disclosed may be used by an authorized
person, with respect to income-
contingent or income-based repayment
plans, awards of Federal student
financial aid under a program
authorized under subpart 1 of part A,
part C, or part D of title IV of the
Higher Education Act of 1965, and
discharges of loans based on a total
and permanent disability (within the
meaning of section 437(a) of such Act),
for purposes of--
(I) reducing the net cost of
improper payments under such
plans, relating to such awards,
or relating to such discharges,
(II) oversight activities by
the Office of Inspector General
of the Department of Education
as authorized by the Inspector
General Act of 1978, and
(III) conducting analyses and
forecasts for estimating costs
related to such plans, awards,
or discharges.
(ii) Limitation.--The purposes
described in clause (i) shall not
include the conduct of criminal
investigations or prosecutions.
(iii) Redisclosure to institutions of
higher education, State higher
education agencies, and designated
scholarship organizations.--Authorized
persons may redisclose return
information received under subparagraph
(C), solely for the use in the
application, award, and administration
of financial aid awarded by the Federal
government or awarded by a person
described in subclause (I), (II), or
(III), to the following persons:
(I) An institution of higher
education participating in a
program under subpart 1 of part
A, part C, or part D of title
IV of the Higher Education Act
of 1965.
(II) A State higher education
agency.
(III) A scholarship
organization which is an entity
designated (prior to the date
of the enactment of this
clause) by the Secretary of
Education under section
483(a)(3)(E) of such Act.
This clause shall only apply to the extent
that the taxpayer with respect to whom the
return information relates provides written
consent for such redisclosure to the Secretary
of Education. Under such terms and conditions
as may be prescribed by the Secretary, after
consultation with the Department of Education,
an institution of higher education described in
subclause (I) or a State higher education
agency described in subclause (II) may
designate a contractor of such institution or
state agency to receive return information on
behalf of such institution or state agency to
administer aspects of the institution's or
state agency's activities for the application,
award, and administration of such financial
aid.
(iv) Redisclosure to Office of
Inspector General, independent
auditors, and contractors.--Any return
information which is redisclosed under
clause (iii)--
(I) may be further disclosed
by persons described in
subclauses (I), (II), or (III)
of clause (iii) or persons
designated in the last sentence
of clause (iii) to the Office
of Inspector General of the
Department of Education and
independent auditors conducting
audits of such person's
administration of the programs
for which the return
information was received, and
(II) may be further disclosed
by persons described in
subclauses (I), (II), or (III)
of clause (iii) to contractors
of such entities,
but only to the extent necessary in carrying
out the purposes described in such clause
(iii).
(v) Redisclosure to family members.--
In addition to the purposes for which
information is disclosed and used under
subparagraphs (A) and (C), or
redisclosed under clause (iii), any
return information so disclosed or
redisclosed may be further disclosed to
any individual certified by the
Secretary of Education as having
provided approval under paragraph (1)
or (2) of section 494(a) of the Higher
Education Act of 1965, as the case may
be, for disclosure related to the
income-contingent or income-based
repayment plan under subparagraph (A)
or the eligibility for, and amount of,
Federal student financial aid described
in subparagraph (C).
(vi) Redisclosure of FAFSA
information.--Return information
received under subparagraph (C) may be
redisclosed in accordance with
subsection (c) of section 494 of the
Higher Education Act of 1965 (as in
effect on the date of enactment of the
COVID-related Tax Relief Act of 2020)
to carry out the purposes specified in
such subsection.
(E) Authorized person.--For purposes of this
paragraph, the term ``authorized person''
means, with respect to information disclosed
under subparagraph (A), (B), or (C), any person
who--
(i) is an officer, employee, or
contractor, of the Department of
Education, and
(ii) is specifically authorized and
designated by the Secretary of
Education for purposes of such
subparagraph (applied separately with
respect to each such subparagraph).
(F) Joint returns.--In the case of a joint
return, any disclosure authorized under
subparagraph (A), (B), or (C), and any
redisclosure authorized under clause (iii),
(iv) (v), or (vi) of subparagraph (D), with
respect to an individual shall be treated for
purposes of this paragraph as applying with
respect to the taxpayer.
(14) Disclosure of return information to United
States Customs Service.--The Secretary may, upon
written request from the Commissioner of the United
States Customs Service, disclose to officers and
employees of the Department of the Treasury such return
information with respect to taxes imposed by chapters 1
and 6 as the Secretary may prescribe by regulations,
solely for the purpose of, and only to the extent
necessary in--
(A) ascertaining the correctness of any entry
in audits as provided for in section 509 of the
Tariff Act of 1930 (19 U.S.C. 1509), or
(B) other actions to recover any loss of
revenue, or to collect duties, taxes, and fees,
determined to be due and owing pursuant to such
audits.
(15) Disclosure of returns filed under section
6050I.--The Secretary may, upon written request,
disclose to officers and employees of--
(A) any Federal agency,
(B) any agency of a State or local
government, or
(C) any agency of the government of a foreign
country,
information contained on returns filed under section
6050I. Any such disclosure shall be made on the same
basis, and subject to the same conditions, as apply to
disclosures of information on reports filed under
section 5313 of title 31, United States Code; except
that no disclosure under this paragraph shall be made
for purposes of the administration of any tax law.
(16) Disclosure of return information for purposes of
administering the District of Columbia Retirement
Protection Act of 1997.--
(A) In general.--Upon written request
available return information (including such
information disclosed to the Social Security
Administration under paragraph (1) or (5) of
this subsection), relating to the amount of
wage income (as defined in section 3121(a) or
3401(a)), the name, address, and identifying
number assigned under section 6109, of payors
of wage income, taxpayer identity (as defined
in section 6103(b)(6)), and the occupational
status reflected on any return filed by, or
with respect to, any individual with respect to
whom eligibility for, or the correct amount of,
benefits under the District of Columbia
Retirement Protection Act of 1997, is sought to
be determined, shall be disclosed by the
Commissioner of Social Security, or to the
extent not available from the Social Security
Administration, by the Secretary, to any duly
authorized officer or employee of the
Department of the Treasury, or a Trustee or any
designated officer or employee of a Trustee (as
defined in the District of Columbia Retirement
Protection Act of 1997), or any actuary engaged
by a Trustee under the terms of the District of
Columbia Retirement Protection Act of 1997,
whose official duties require such disclosure,
solely for the purpose of, and to the extent
necessary in, determining an individual's
eligibility for, or the correct amount of,
benefits under the District of Columbia
Retirement Protection Act of 1997.
(B) Disclosure for use in judicial or
administrative proceedings.--Return information
disclosed to any person under this paragraph
may be disclosed in a judicial or
administrative proceeding relating to the
determination of an individual's eligibility
for, or the correct amount of, benefits under
the District of Columbia Retirement Protection
Act of 1997.
(17) Disclosure to National Archives and Records
Administration.--The Secretary shall, upon written
request from the Archivist of the United States,
disclose or authorize the disclosure of returns and
return information to officers and employees of the
National Archives and Records Administration for
purposes of, and only to the extent necessary in, the
appraisal of records for destruction or retention. No
such officer or employee shall, except to the extent
authorized by subsection (f), (i)(8), or (p), disclose
any return or return information disclosed under the
preceding sentence to any person other than to the
Secretary, or to another officer or employee of the
National Archives and Records Administration whose
official duties require such disclosure for purposes of
such appraisal.
(18) Disclosure of return information for purposes of
carrying out a program for advance payment of credit
for health insurance costs of eligible individuals.--
The Secretary may disclose to providers of health
insurance for any certified individual (as defined in
section 7527(c)) return information with respect to
such certified individual only to the extent necessary
to carry out the program established by section 7527
(relating to advance payment of credit for health
insurance costs of eligible individuals).
(19) Disclosure of return information for purposes of
providing transitional assistance under medicare
discount card program.--
(A) In general.--The Secretary, upon written
request from the Secretary of Health and Human
Services pursuant to carrying out section
1860D-31 of the Social Security Act, shall
disclose to officers, employees, and
contractors of the Department of Health and
Human Services with respect to a taxpayer for
the applicable year--
(i)(I) whether the adjusted gross
income, as modified in accordance with
specifications of the Secretary of
Health and Human Services for purposes
of carrying out such section, of such
taxpayer and, if applicable, such
taxpayer's spouse, for the applicable
year, exceeds the amounts specified by
the Secretary of Health and Human
Services in order to apply the 100 and
135 percent of the poverty lines under
such section, (II) whether the return
was a joint return, and (III) the
applicable year, or
(ii) if applicable, the fact that
there is no return filed for such
taxpayer for the applicable year.
(B) Definition of applicable year.--For the
purposes of this subsection, the term
``applicable year'' means the most recent
taxable year for which information is available
in the Internal Revenue Service's taxpayer data
information systems, or, if there is no return
filed for such taxpayer for such year, the
prior taxable year.
(C) Restriction on use of disclosed
information.--Return information disclosed
under this paragraph may be used only for the
purposes of determining eligibility for and
administering transitional assistance under
section 1860D-31 of the Social Security Act.
(20) Disclosure of return information to carry out
Medicare part B premium subsidy adjustment and part D
base beneficiary premium increase.--
(A) In general.--The Secretary shall, upon
written request from the Commissioner of Social
Security, disclose to officers, employees, and
contractors of the Social Security
Administration return information of a taxpayer
whose premium (according to the records of the
Secretary) may be subject to adjustment under
section 1839(i) or increase under section
1860D-13(a)(7) of the Social Security Act. Such
return information shall be limited to--
(i) taxpayer identity information
with respect to such taxpayer,
(ii) the filing status of such
taxpayer,
(iii) the adjusted gross income of
such taxpayer,
(iv) the amounts excluded from such
taxpayer's gross income under sections
135 and 911 to the extent such
information is available,
(v) the interest received or accrued
during the taxable year which is exempt
from the tax imposed by chapter 1 to
the extent such information is
available,
(vi) the amounts excluded from such
taxpayer's gross income by sections 931
and 933 to the extent such information
is available,
(vii) such other information relating
to the liability of the taxpayer as is
prescribed by the Secretary by
regulation as might indicate in the
case of a taxpayer who is an individual
described in subsection (i)(4)(B)(iii)
of section 1839 of the Social Security
Act that the amount of the premium of
the taxpayer under such section may be
subject to adjustment under subsection
(i) of such section or increase under
section 1860D-13(a)(7) of such Act and
the amount of such adjustment, and
(viii) the taxable year with respect
to which the preceding information
relates.
(B) Restriction on use of disclosed
information.--
(i) In general.--Return information
disclosed under subparagraph (A) may be
used by officers, employees, and
contractors of the Social Security
Administration only for the purposes
of, and to the extent necessary in,
establishing the appropriate amount of
any premium adjustment under such
section 1839(i) or increase under such
section 1860D-13(a)(7) or for the
purpose of resolving taxpayer appeals
with respect to any such premium
adjustment or increase.
(ii) Disclosure to other agencies.--
Officers, employees, and contractors of
the Social Security Administration may
disclose--
(I) the taxpayer identity
information and the amount of
the premium subsidy adjustment
or premium increase with
respect to a taxpayer described
in subparagraph (A) to
officers, employees, and
contractors of the Centers for
Medicare and Medicaid Services,
to the extent that such
disclosure is necessary for the
collection of the premium
subsidy amount or the increased
premium amount,
(II) the taxpayer identity
information and the amount of
the premium subsidy adjustment
or the increased premium amount
with respect to a taxpayer
described in subparagraph (A)
to officers and employees of
the Office of Personnel
Management and the Railroad
Retirement Board, to the extent
that such disclosure is
necessary for the collection of
the premium subsidy amount or
the increased premium amount,
(III) return information with
respect to a taxpayer described
in subparagraph (A) to officers
and employees of the Department
of Health and Human Services to
the extent necessary to resolve
administrative appeals of such
premium subsidy adjustment or
increased premium, and
(IV) return information with
respect to a taxpayer described
in subparagraph (A) to officers
and employees of the Department
of Justice for use in judicial
proceedings to the extent
necessary to carry out the
purposes described in clause
(i).
(21) Disclosure of return information to carry out
eligibility requirements for certain programs.--
(A) In general.--The Secretary, upon written
request from the Secretary of Health and Human
Services, shall disclose to officers,
employees, and contractors of the Department of
Health and Human Services return information of
any taxpayer whose income is relevant in
determining any premium tax credit under
section 36B or any cost-sharing reduction under
section 1402 of the Patient Protection and
Affordable Care Act or eligibility for
participation in a State medicaid program under
title XIX of the Social Security Act, a State's
children's health insurance program under title
XXI of the Social Security Act, or a basic
health program under section 1331 of Patient
Protection and Affordable Care Act. Such return
information shall be limited to--
(i) taxpayer identity information
with respect to such taxpayer,
(ii) the filing status of such
taxpayer,
(iii) the number of individuals for
whom a deduction is allowed under
section 151 with respect to the
taxpayer (including the taxpayer and
the taxpayer's spouse),
(iv) the modified adjusted gross
income (as defined in section 36B) of
such taxpayer and each of the other
individuals included under clause (iii)
who are required to file a return of
tax imposed by chapter 1 for the
taxable year,
(v) such other information as is
prescribed by the Secretary by
regulation as might indicate whether
the taxpayer is eligible for such
credit or reduction (and the amount
thereof), and
(vi) the taxable year with respect to
which the preceding information relates
or, if applicable, the fact that such
information is not available.
(B) Information to exchange and State
agencies.--The Secretary of Health and Human
Services may disclose to an Exchange
established under the Patient Protection and
Affordable Care Act or its contractors, or to a
State agency administering a State program
described in subparagraph (A) or its
contractors, any inconsistency between the
information provided by the Exchange or State
agency to the Secretary and the information
provided to the Secretary under subparagraph
(A).
(C) Restriction on use of disclosed
information.--Return information disclosed
under subparagraph (A) or (B) may be used by
officers, employees, and contractors of the
Department of Health and Human Services, an
Exchange, or a State agency only for the
purposes of, and to the extent necessary in--
(i) establishing eligibility for
participation in the Exchange, and
verifying the appropriate amount of,
any credit or reduction described in
subparagraph (A),
(ii) determining eligibility for
participation in the State programs
described in subparagraph (A).
(22) Disclosure of return information to Department
of Health and Human Services for purposes of enhancing
Medicare program integrity.--
(A) In general.--The Secretary shall, upon
written request from the Secretary of Health
and Human Services, disclose to officers and
employees of the Department of Health and Human
Services return information with respect to a
taxpayer who has applied to enroll, or
reenroll, as a provider of services or supplier
under the Medicare program under title XVIII of
the Social Security Act. Such return
information shall be limited to--
(i) the taxpayer identity information
with respect to such taxpayer;
(ii) the amount of the delinquent tax
debt owed by that taxpayer; and
(iii) the taxable year to which the
delinquent tax debt pertains.
(B) Restriction on disclosure.--Return
information disclosed under subparagraph (A)
may be used by officers and employees of the
Department of Health and Human Services for the
purposes of, and to the extent necessary in,
establishing the taxpayer's eligibility for
enrollment or reenrollment in the Medicare
program, or in any administrative or judicial
proceeding relating to, or arising from, a
denial of such enrollment or reenrollment, or
in determining the level of enhanced oversight
to be applied with respect to such taxpayer
pursuant to section 1866(j)(3) of the Social
Security Act.
(C) Delinquent tax debt.--For purposes of
this paragraph, the term ``delinquent tax
debt'' means an outstanding debt under this
title for which a notice of lien has been filed
pursuant to section 6323, but the term does not
include a debt that is being paid in a timely
manner pursuant to an agreement under section
6159 or 7122, or a debt with respect to which a
collection due process hearing under section
6330 is requested, pending, or completed and no
payment is required.
(m) Disclosure of taxpayer identity information.--
(1) Tax refunds.--The Secretary may disclose taxpayer
identity information to the press and other media for
purposes of notifying persons entitled to tax refunds
when the Secretary, after reasonable effort and lapse
of time, has been unable to locate such persons.
(2) Federal claims.--
(A) In general.--Except as provided in
subparagraph (B), the Secretary may, upon
written request, disclose the mailing address
of a taxpayer for use by officers, employees,
or agents of a Federal agency for purposes of
locating such taxpayer to collect or compromise
a Federal claim against the taxpayer in
accordance with sections 3711, 3717, and 3718
of title 31.
(B) Special rule for consumer reporting
agency.--In the case of an agent of a Federal
agency which is a consumer reporting agency
(within the meaning of section 603(f) of the
Fair Credit Reporting Act (15 U.S.C.
1681a(f))), the mailing address of a taxpayer
may be disclosed to such agent under
subparagraph (A) only for the purpose of
allowing such agent to prepare a commercial
credit report on the taxpayer for use by such
Federal agency in accordance with sections
3711, 3717, and 3718 of title 31.
(3) National Institute for Occupational Safety and
Health.--Upon written request, the Secretary may
disclose the mailing address of taxpayers to officers
and employees of the National Institute for
Occupational Safety and Health solely for the purpose
of locating individuals who are, or may have been,
exposed to occupational hazards in order to determine
the status of their health or to inform them of the
possible need for medical care and treatment.
(4) Individuals who owe an overpayment of Federal
Pell Grants or who have defaulted on student loans
administered by the Department of Education.--
(A) In general.--Upon written request by the
Secretary of Education, the Secretary may
disclose the mailing address of any taxpayer--
(i) who owes an overpayment of a
grant awarded to such taxpayer under
subpart 1 of part A of title IV of the
Higher Education Act of 1965, or
(ii) who has defaulted on a loan--
(I) made under part B, D, or
E of title IV of the Higher
Education Act of 1965, or
(II) made pursuant to section
3(a)(1) of the Migration and
Refugee Assistance Act of 1962
to a student at an institution
of higher education,
for use only by officers, employees, or agents
of the Department of Education for purposes of
locating such taxpayer for purposes of
collecting such overpayment or loan.
(B) Disclosure to educational institutions,
etc..--Any mailing address disclosed under
subparagraph (A)(i) may be disclosed by the
Secretary of Education to--
(i) any lender, or any State or
nonprofit guarantee agency, which is
participating under part B or D of
title IV of the Higher Education Act of
1965, or
(ii) any educational institution with
which the Secretary of Education has an
agreement under subpart 1 of part A, or
part D or E, of title IV of such Act,
for use only by officers, employees, or agents
of such lender, guarantee agency, or
institution whose duties relate to the
collection of student loans for purposes of
locating individuals who have defaulted on
student loans made under such loan programs for
purposes of collecting such loans.
(5) Individuals who have defaulted on student loans
administered by the Department of Health and Human
Services.--
(A) In general.--Upon written request by the
Secretary of Health and Human Services, the
Secretary may disclose the mailing address of
any taxpayer who has defaulted on a loan made
under part C 1 of title VII of the
Public Health Service Act or under subpart II
of part B of title VIII of such Act, for use
only by officers, employees, or agents of the
Department of Health and Human Services for
purposes of locating such taxpayer for purposes
of collecting such loan.
(B) Disclosure to schools and eligible
lenders.--Any mailing address disclosed under
subparagraph (A) may be disclosed by the
Secretary of Health and Human Services to--
(i) any school with which the
Secretary of Health and Human Services
has an agreement under subpart II
1 of part C of title VII of
the Public Health Service Act or
subpart II 1 of part B of
title VIII of such Act, or
(ii) any eligible lender (within the
meaning of section 737(4) 1
of such Act) participating under
subpart I 1 of part C of
title VII of such Act,
for use only by officers, employees, or agents
of such school or eligible lender whose duties
relate to the collection of student loans for
purposes of locating individuals who have
defaulted on student loans made under such
subparts for the purposes of collecting such
loans.
(6) Blood Donor Locator Service.--
(A) In general.--Upon written request
pursuant to section 1141 of the Social Security
Act, the Secretary shall disclose the mailing
address of taxpayers to officers and employees
of the Blood Donor Locator Service in the
Department of Health and Human Services.
(B) Restriction on disclosure.--The Secretary
shall disclose return information under
subparagraph (A) only for purposes of, and to
the extent necessary in, assisting under the
Blood Donor Locator Service authorized persons
(as defined in section 1141(h)(1) of the Social
Security Act) in locating blood donors who, as
indicated by donated blood or products derived
therefrom or by the history of the subsequent
use of such blood or blood products, have or
may have the virus for acquired immune
deficiency syndrome, in order to inform such
donors of the possible need for medical care
and treatment.
(C) Safeguards.--The Secretary shall destroy
all related blood donor records (as defined in
section 1141(h)(2) of the Social Security Act)
in the possession of the Department of the
Treasury upon completion of their use in making
the disclosure required under subparagraph (A),
so as to make such records undisclosable.
(7) Social security account statement furnished by
Social Security Administration.--Upon written request
by the Commissioner of Social Security, the Secretary
may disclose the mailing address of any taxpayer who is
entitled to receive a social security account statement
pursuant to section 1143(c) of the Social Security Act,
for use only by officers, employees or agents of the
Social Security Administration for purposes of mailing
such statement to such taxpayer.
(n) Certain other persons.--Pursuant to regulations
prescribed by the Secretary, returns and return information may
be disclosed to any person, including any person described in
section 7513(a), to the extent necessary in connection with the
processing, storage, transmission, and reproduction of such
returns and return information, the programming, maintenance,
repair, testing, and procurement of equipment, and the
providing of other services, for purposes of tax
administration.
(o) Disclosure of returns and return information with respect
to certain taxes.--
(1) Taxes imposed by subtitle E.--
(A) In general.--Returns and return
information with respect to taxes imposed by
subtitle E (relating to taxes on alcohol,
tobacco, and firearms) shall be open to
inspection by or disclosure to officers and
employees of a Federal agency whose official
duties require such inspection or disclosure.
(B) Use in certain proceedings.--Returns and
return information disclosed to a Federal
agency under subparagraph (A) may be used in an
action or proceeding (or in preparation for
such action or proceeding) brought under
section 625 of the American Jobs Creation Act
of 2004 for the collection of any unpaid
assessment or penalty arising under such Act.
(2) Taxes imposed by chapter 35.--Returns and return
information with respect to taxes imposed by chapter 35
(relating to taxes on wagering) shall, notwithstanding
any other provision of this section, be open to
inspection by or disclosure only to such person or
persons and for such purpose or purposes as are
prescribed by section 4424.
(3) Taxes imposed by section 4481.--Returns and
return information with respect to taxes imposed by
section 4481 shall be open to inspection by or
disclosure to officers and employees of United States
Customs and Border Protection of the Department of
Homeland Security whose official duties require such
inspection or disclosure for purposes of administering
such section.
(p) Procedure and recordkeeping.--
(1) Manner, time, and place of inspections.--Requests
for the inspection or disclosure of a return or return
information and such inspection or disclosure shall be
made in such manner and at such time and place as shall
be prescribed by the Secretary.
(2) Procedure.--
(A) Reproduction of returns.--A reproduction
or certified reproduction of a return shall,
upon written request, be furnished to any
person to whom disclosure or inspection of such
return is authorized under this section. A
reasonable fee may be prescribed for furnishing
such reproduction or certified reproduction.
(B) Disclosure of return information.--Return
information disclosed to any person under the
provisions of this title may be provided in the
form of written documents, reproductions of
such documents, films or photoimpressions, or
electronically produced tapes, disks, or
records, or by any other mode or means which
the Secretary determines necessary or
appropriate. A reasonable fee may be prescribed
for furnishing such return information.
(C) Use of reproductions.--Any reproduction
of any return, document, or other matter made
in accordance with this paragraph shall have
the same legal status as the original, and any
such reproduction shall, if properly
authenticated, be admissible in evidence in any
judicial or administrative proceeding as if it
were the original, whether or not the original
is in existence.
(3) Records of inspection and disclosure.--
(A) System of recordkeeping.--Except as
otherwise provided by this paragraph, the
Secretary shall maintain a permanent system of
standardized records or accountings of all
requests for inspection or disclosure of
returns and return information (including the
reasons for and dates of such requests) and of
returns and return information inspected or
disclosed under this section and section
6104(c). Notwithstanding the provisions of
section 552a(c) of title 5, United States Code,
the Secretary shall not be required to maintain
a record or accounting of requests for
inspection or disclosure of returns and return
information, or of returns and return
information inspected or disclosed, under the
authority of subsection (c), (e), (f)(5),
(h)(1), (3)(A), or (4), (i)(4), or (8)(A)(ii),
(k)(1), (2), (6), (8), or (9), (l)(1), (4)(B),
(5), (7), (8), (9), (10), (11), (12),
(13)(D)(iv), (13)(D)(v), (13)(D)(vi) 2
(14), (15), (16), (17), or (18), (m), or (n).
The records or accountings required to be
maintained under this paragraph shall be
available for examination by the Joint
Committee on Taxation or the Chief of Staff of
such joint committee. Such record or accounting
shall also be available for examination by such
person or persons as may be, but only to the
extent, authorized to make such examination
under section 552a(c)(3) of title 5, United
States Code.
(B) Report by the Secretary.--The Secretary
shall, within 90 days after the close of each
calendar year, furnish to the Joint Committee
on Taxation a report with respect to, or
summary of, the records or accountings
described in subparagraph (A) in such form and
containing such information as such joint
committee or the Chief of Staff of such joint
committee may designate. Such report or summary
shall not, however, include a record or
accounting of any request by the President
under subsection (g) for, or the disclosure in
response to such request of, any return or
return information with respect to any
individual who, at the time of such request,
was an officer or employee of the executive
branch of the Federal Government. Such report
or summary, or any part thereof, may be
disclosed by such joint committee to such
persons and for such purposes as the joint
committee may, by record vote of a majority of
the members of the joint committee, determine.
(C) Public report on disclosures.--The
Secretary shall, within 90 days after the close
of each calendar year, furnish to the Joint
Committee on Taxation for disclosure to the
public a report with respect to the records or
accountings described in subparagraph (A)
which--
(i) provides with respect to each
Federal agency, each agency, body, or
commission described in subsection (d),
(i)(3)(B)(i) or (7)(A)(ii), or (l)(6),
and the Government Accountability
Office the number of--
(I) requests for disclosure
of returns and return
information,
(II) instances in which
returns and return information
were disclosed pursuant to such
requests or otherwise,
(III) taxpayers whose
returns, or return information
with respect to whom, were
disclosed pursuant to such
requests, and
(ii) describes the general purposes
for which such requests were made.
(4) Safeguards.--Any Federal agency described in
subsection (h)(2), (h)(5), (i)(1), (2), (3), (5), or
(7), (j)(1), (2), or (5), (k)(8), (10), (11), or (15),
(l)(1), (2), (3), (5), (10), (11), (13)(A), (13)(B),
(13)(C), (13)(D)(i), (14), (17), or (22), (o)(1)(A), or
(o)(3), the Government Accountability Office, the
Congressional Budget Office, or any agency, body, or
commission described in subsection (d), (i)(1)(C),
(3)(B)(i), or (7)(A)(ii), or (k)(10), (l)(6), (7), (8),
(9), (12), (15), or (16), any appropriate State officer
(as defined in section 6104(c)), or any other person
described in subsection (k)(10) or (15), [subsection
(l)(10), (13)(A), (13)(B), (13)(C), (13)(D)(i), (16),
(18), (19), or (20), or any entity] subsection (l)(6),
(8), (10), (13)(A), (13)(B), (13)(C), (13)(D)(i), (16),
(18), (19), or (20), or any Indian tribe or tribal
organization receiving a grant under section 455(f) of
the Social Security Act, or any entity described in
subsection (l)(21), shall, as a condition for receiving
returns or return information--
(A) establish and maintain, to the
satisfaction of the Secretary, a permanent
system of standardized records with respect to
any request, the reason for such request, and
the date of such request made by or of it and
any disclosure of return or return information
made by or to it;
(B) establish and maintain, to the
satisfaction of the Secretary, a secure area or
place in which such returns or return
information shall be stored;
(C) restrict, to the satisfaction of the
Secretary, access to the returns or return
information only to persons whose duties or
responsibilities require access and to whom
disclosure may be made under the provisions of
this title;
(D) provide such other safeguards which the
Secretary determines (and which he prescribes
in regulations) to be necessary or appropriate
to protect the confidentiality of the returns
or return information;
(E) furnish a report to the Secretary, at
such time and containing such information as
the Secretary may prescribe, which describes
the procedures established and utilized by such
agency, body, or commission, the Government
Accountability Office, or the Congressional
Budget Office for ensuring the confidentiality
of returns and return information required by
this paragraph; and
(F) upon completion of use of such returns or
return information--
(i) in the case of an agency, body,
or commission described in subsection
(d), (i)(3)(B)(i), (k)(10), or (l)(6),
(7), (8), (9), or (16), any appropriate
State officer (as defined in section
6104(c)), or any other person described
in subsection (k)(10) or (15) or
[subsection (l)(10)] subsection (l)(6),
(8), (10), (13)(A), (13)(B), (13)(C),
(13)(D)(i), (16), (18), (19), or (20)
return to the Secretary such returns or
return information (along with any
copies made therefrom) or make such
returns or return information
undisclosable in any manner and furnish
a written report to the Secretary
describing such manner,
(ii) in the case of an agency
described in subsection (h)(2), (h)(5),
(i)(1), (2), (3), (5) or (7), (j)(1),
(2), or (5), (k)(8), (10), (11), or
(15), (l)(1), (2), (3), (5), (10),
(11), (12), (13)(A), (13)(B), (13)(C),
(13)(D)(i), (14), (15), (17), or (22),,
(o)(1)(A), or (o)(3) or any entity
described in subsection (l)(21), the
Government Accountability Office, or
the Congressional Budget Office,
either--
(I) return to the Secretary
such returns or return
information (along with any
copies made therefrom),
(II) otherwise make such
returns or return information
undisclosable, or
(III) to the extent not so
returned or made undisclosable,
ensure that the conditions of
subparagraphs (A), (B), (C),
(D), and (E) of this paragraph
continue to be met with respect
to such returns or return
information, and
(iii) in the case of the Department
of Health and Human Services for
purposes of subsection (m)(6), destroy
all such return information upon
completion of its use in providing the
notification for which the information
was obtained, so as to make such
information undisclosable;
except that the conditions of subparagraphs (A), (B),
(C), (D), and (E) shall cease to apply with respect to
any return or return information if, and to the extent
that, such return or return information is disclosed in
the course of any judicial or administrative proceeding
and made a part of the public record thereof. If the
Secretary determines that any such agency, body, or
commission, including an agency, an appropriate State
officer (as defined in section 6104(c)), or any other
person described in subsection (k)(10) or (15) or
[subsection (l)(10), (13)(A), (13)(B), (13)(C),
(13)(D)(i), (16), (18), (19), or (20) or any entity]
subsection (l)(6), (8), (10), (13)(A), (13)(B),
(13)(C), (13)(D)(i), (16), (18), (19), or (20), or any
Indian tribe or tribal organization receiving a grant
under section 455(f) of the Social Security Act, or any
entity described in subsection (l)(21), or the
Government Accountability Office or the Congressional
Budget Office, has failed to, or does not, meet the
requirements of this paragraph, he may, after any
proceedings for review established under paragraph (7),
take such actions as are necessary to ensure such
requirements are met, including refusing to disclose
returns or return information to such agency, body, or
commission, including an agency, an appropriate State
officer (as defined in section 6104(c)), or any other
person described in subsection (k)(10) or (15) or
[subsection (l)(10), (13)(A), (13)(B), (13)(C),
(13)(D)(i), (16), (18), (19), or (20) or any entity]
subsection (l)(6), (8), (10), (13)(A), (13)(B),
(13)(C), (13)(D)(i), (16), (18), (19), or (20), or any
Indian tribe or tribal organization receiving a grant
under section 455(f) of the Social Security Act, or any
entity described in subsection (l)(21), or the
Government Accountability Office or the Congressional
Budget Office, until he determines that such
requirements have been or will be met. In the case of
any agency which receives any mailing address under
paragraph (2), (4), (6), or (7) of subsection (m) and
which discloses any such mailing address to any agent
or which receives any information under paragraph
(6)(A), (8), (10), (12)(B), or (16) of subsection (l)
and which discloses any such information to any agent,
or any person including an agent described in
subsection (l)(10), (13)(A), (13)(B), (13)(C),
(13)(D)(i), or (16), this paragraph shall apply to such
agency and each such agent or other person (except
that, in the case of an agent, or any person including
an agent described in subsection (l)(10), (13)(A),
(13)(B), (13)(C), (13)(D)(i), or (16), any report to
the Secretary or other action with respect to the
Secretary shall be made or taken through such agency).
For purposes of applying this paragraph in any case to
which subsection (m)(6) applies, the term ``return
information'' includes related blood donor records (as
defined in section 1141(h)(2) of the Social Security
Act).
(5) Report on procedures and safeguards.--After the
close of each calendar year, the Secretary shall
furnish to each committee described in subsection
(f)(1) a report which describes the procedures and
safeguards established and utilized by such agencies,
bodies, or commissions, the Government Accountability
Office, and the Congressional Budget Office for
ensuring the confidentiality of returns and return
information as required by this subsection. Such report
shall also describe instances of deficiencies in, and
failure to establish or utilize, such procedures.
(6) Audit of procedures and safeguards.--
(A) Audit by Comptroller General.--The
Comptroller General may audit the procedures
and safeguards established by such agencies,
bodies, or commissions and the Congressional
Budget Office pursuant to this subsection to
determine whether such safeguards and
procedures meet the requirements of this
subsection and ensure the confidentiality of
returns and return information. The Comptroller
General shall notify the Secretary before any
such audit is conducted.
(B) Records of inspection and reports by the
Comptroller General.--The Comptroller General
shall--
(i) maintain a permanent system of
standardized records and accountings of
returns and return information
inspected by officers and employees of
the Government Accountability Office
under subsection (i)(8)(A)(ii) and
shall, within 90 days after the close
of each calendar year, furnish to the
Secretary a report with respect to, or
summary of, such records or accountings
in such form and containing such
information as the Secretary may
prescribe, and
(ii) furnish an annual report to each
committee described in subsection (f)
and to the Secretary setting forth his
findings with respect to any audit
conducted pursuant to subparagraph (A).
The Secretary may disclose to the Joint
Committee any report furnished to him under
clause (i).
(7) Administrative review.--The Secretary shall by
regulations prescribe procedures which provide for
administrative review of any determination under
paragraph (4) that any agency, body, or commission
described in subsection (d) has failed to meet the
requirements of such paragraph.
(8) State law requirements.--
(A) Safeguards.--Notwithstanding any other
provision of this section, no return or return
information shall be disclosed after December
31, 1978, to any officer or employee of any
State which requires a taxpayer to attach to,
or include in, any State tax return a copy of
any portion of his Federal return, or
information reflected on such Federal return,
unless such State adopts provisions of law
which protect the confidentiality of the copy
of the Federal return (or portion thereof)
attached to, or the Federal return information
reflected on, such State tax return.
(B) Disclosure of returns or return
information in State returns.--Nothing in
subparagraph (A) or paragraph (9) shall be
construed to prohibit the disclosure by an
officer or employee of any State of any copy of
any portion of a Federal return or any
information on a Federal return which is
required to be attached or included in a State
return to another officer or employee of such
State (or political subdivision of such State)
if such disclosure is specifically authorized
by State law.
(9) Disclosure to contractors and other agents.--
Notwithstanding any other provision of this section, no
return or return information shall be disclosed to any
contractor or other agent of a Federal, State, [or
local] tribal, or local agency unless such agency, to
the satisfaction of the Secretary--
(A) has requirements in effect which require
each such contractor or other agent which would
have access to returns or return information to
provide safeguards (within the meaning of
paragraph (4)) to protect the confidentiality
of such returns or return information,
(B) agrees to conduct an on-site review every
3 years (or a mid-point review in the case of
contracts or agreements of less than 3 years in
duration) of each contractor or other agent to
determine compliance with such requirements,
(C) submits the findings of the most recent
review conducted under subparagraph (B) to the
Secretary as part of the report required by
paragraph (4)(E), and
(D) certifies to the Secretary for the most
recent annual period that such contractor or
other agent is in compliance with all such
requirements.
The certification required by subparagraph (D) shall
include the name and address of each contractor or
other agent, a description of the contract or agreement
with such contractor or other agent, and the duration
of such contract or agreement. The requirements of this
paragraph shall not apply to disclosures pursuant to
subsection (n) for purposes of Federal tax
administration.
(q) Regulations.--The Secretary is authorized to prescribe
such other regulations as are necessary to carry out the
provisions of this section.
* * * * * * *
CHAPTER 65--ABATEMENTS, CREDITS, AND
REFUNDS
Subchapter A--PROCEDURE IN GENERAL
* * * * * * *
SEC. 6402. AUTHORITY TO MAKE CREDITS OR REFUNDS.
(a) General rule.--In the case of any overpayment, the
Secretary, within the applicable period of limitations, may
credit the amount of such overpayment, including any interest
allowed thereon, against any liability in respect of an
internal revenue tax on the part of the person who made the
overpayment and shall, subject to subsections (c), (d), (e),
and (f), refund any balance to such person.
(b) Credits against estimated tax.--The Secretary is
authorized to prescribe regulations providing for the crediting
against the estimated income tax for any taxable year of the
amount determined by the taxpayer or the Secretary to be an
overpayment of the income tax for a preceding taxable year.
(c) Offset of past-due support against overpayments.--The
amount of any overpayment to be refunded to the person making
the overpayment shall be reduced by the amount of any past-due
support (as defined in section 464(c) of the Social Security
Act) owed by that person of which the Secretary has been
notified by a State in accordance with section 464 of such Act.
The Secretary shall remit the amount by which the overpayment
is so reduced to the State collecting such support and notify
the person making the overpayment that so much of the
overpayment as was necessary to satisfy his obligation for
past-due support has been paid to the State. The Secretary
shall apply a reduction under this subsection first to an
amount certified by the State as past due support under section
464 of the Social Security Act before any other reductions
allowed by law. This subsection shall be applied to an
overpayment prior to its being credited to a person's future
liability for an internal revenue tax. For purposes of this
subsection, any reference to a State shall include a reference
to any Indian tribe or tribal organization receiving a grant
under section 455(f) of the Social Security Act.
(d) Collection of debts owed to Federal agencies.--
(1) In general.--Upon receiving notice from any
Federal agency that a named person owes a past-due
legally enforceable debt (other than past-due support
subject to the provisions of subsection (c)) to such
agency, the Secretary shall--
(A) reduce the amount of any overpayment
payable to such person by the amount of such
debt;
(B) pay the amount by which such overpayment
is reduced under subparagraph (A) to such
agency; and
(C) notify the person making such overpayment
that such overpayment has been reduced by an
amount necessary to satisfy such debt.
(2) Priorities for offset.--Any overpayment by a
person shall be reduced pursuant to this subsection
after such overpayment is reduced pursuant to
subsection (c) with respect to past-due support
collected pursuant to an assignment under section
408(a)(3) of the Social Security Act (42 U.S.C.
608(a)(3)) and before such overpayment is reduced
pursuant to subsections (e) and (f) and before such
overpayment is credited to the future liability for tax
of such person pursuant to subsection (b). If the
Secretary receives notice from a Federal agency or
agencies of more than one debt subject to paragraph (1)
that is owed by a person to such agency or agencies,
any overpayment by such person shall be applied against
such debts in the order in which such debts accrued.
(3) Treatment of OASDI overpayments.--
(A) Requirements.--Paragraph (1) shall apply
with respect to an OASDI overpayment only if
the requirements of paragraphs (1) and (2) of
section 3720A(f) of title 31, United States
Code, are met with respect to such overpayment.
(B) Notice; protection of other persons
filing joint return.--
(i) Notice.--In the case of a debt
consisting of an OASDI overpayment, if
the Secretary determines upon receipt
of the notice referred to in paragraph
(1) that the refund from which the
reduction described in paragraph (1)(A)
would be made is based upon a joint
return, the Secretary shall--
(I) notify each taxpayer
filing such joint return that
the reduction is being made
from a refund based upon such
return, and
(II) include in such
notification a description of
the procedures to be followed,
in the case of a joint return,
to protect the share of the
refund which may be payable to
another person.
(ii) Adjustments based on protections
given to other taxpayers on joint
return.--If the other person filing a
joint return with the person owing the
OASDI overpayment takes appropriate
action to secure his or her proper
share of the refund subject to
reduction under this subsection, the
Secretary shall pay such share to such
other person. The Secretary shall
deduct the amount of such payment from
amounts which are derived from
subsequent reductions in refunds under
this subsection and are payable to a
trust fund referred to in subparagraph
(C).
(C) Deposit of amount of reduction into
appropriate trust fund.--In lieu of payment,
pursuant to paragraph (1)(B), of the amount of
any reduction under this subsection to the
Commissioner of Social Security, the Secretary
shall deposit such amount in the Federal Old-
Age and Survivors Insurance Trust Fund or the
Federal Disability Insurance Trust Fund,
whichever is certified to the Secretary as
appropriate by the Commissioner of Social
Security.
(D) OASDI overpayment.--For purposes of this
paragraph, the term ``OASDI overpayment'' means
any overpayment of benefits made to an
individual under title II of the Social
Security Act.
(e) Collection of past-due, legally enforceable State income
tax obligations.--
(1) In general.--Upon receiving notice from any State
that a named person owes a past-due, legally
enforceable State income tax obligation to such State,
the Secretary shall, under such conditions as may be
prescribed by the Secretary--
(A) reduce the amount of any overpayment
payable to such person by the amount of such
State income tax obligation;
(B) pay the amount by which such overpayment
is reduced under subparagraph (A) to such State
and notify such State of such person's name,
taxpayer identification number, address, and
the amount collected; and
(C) notify the person making such overpayment
that the overpayment has been reduced by an
amount necessary to satisfy a past-due, legally
enforceable State income tax obligation.
If an offset is made pursuant to a joint return, the
notice under subparagraph (B) shall include the names,
taxpayer identification numbers, and addresses of each
person filing such return.
(2) Offset permitted only against residents of State
seeking offset.--Paragraph (1) shall apply to an
overpayment by any person for a taxable year only if
the address shown on the Federal return for such
taxable year of the overpayment is an address within
the State seeking the offset.
(3) Priorities for offset.--Any overpayment by a
person shall be reduced pursuant to this subsection--
(A) after such overpayment is reduced
pursuant to--
(i) subsection (a) with respect to
any liability for any internal revenue
tax on the part of the person who made
the overpayment;
(ii) subsection (c) with respect to
past-due support; and
(iii) subsection (d) with respect to
any past-due, legally enforceable debt
owed to a Federal agency; and
(B) before such overpayment is credited to
the future liability for any Federal internal
revenue tax of such person pursuant to
subsection (b).
If the Secretary receives notice from one or more
agencies of the State of more than one debt subject to
paragraph (1) or subsection (f) that is owed by such
person to such an agency, any overpayment by such
person shall be applied against such debts in the order
in which such debts accrued.
(4) Notice; consideration of evidence.--No State may
take action under this subsection until such State--
(A) notifies by certified mail with return
receipt the person owing the past-due State
income tax liability that the State proposes to
take action pursuant to this section;
(B) gives such person at least 60 days to
present evidence that all or part of such
liability is not past-due or not legally
enforceable;
(C) considers any evidence presented by such
person and determines that an amount of such
debt is past-due and legally enforceable; and
(D) satisfies such other conditions as the
Secretary may prescribe to ensure that the
determination made under subparagraph (C) is
valid and that the State has made reasonable
efforts to obtain payment of such State income
tax obligation.
(5) Past-due, legally enforceable State income tax
obligation.--For purposes of this subsection, the term
``past-due, legally enforceable State income tax
obligation'' means a debt--
(A)(i) which resulted from--
(I) a judgment rendered by a court of
competent jurisdiction which has
determined an amount of State income
tax to be due; or
(II) a determination after an
administrative hearing which has
determined an amount of State income
tax to be due; and
(ii) which is no longer subject to judicial
review; or
(B) which resulted from a State income tax
which has been assessed but not collected, the
time for redetermination of which has expired,
and which has not been delinquent for more than
10 years.
For purposes of this paragraph, the term ``State income
tax'' includes any local income tax administered by the
chief tax administration agency of the State.
(6) Regulations.--The Secretary shall issue
regulations prescribing the time and manner in which
States must submit notices of past-due, legally
enforceable State income tax obligations and the
necessary information that must be contained in or
accompany such notices. The regulations shall specify
the types of State income taxes and the minimum amount
of debt to which the reduction procedure established by
paragraph (1) may be applied. The regulations may
require States to pay a fee to reimburse the Secretary
for the cost of applying such procedure. Any fee paid
to the Secretary pursuant to the preceding sentence
shall be used to reimburse appropriations which bore
all or part of the cost of applying such procedure.
(7) Erroneous payment to State.--Any State receiving
notice from the Secretary that an erroneous payment has
been made to such State under paragraph (1) shall pay
promptly to the Secretary, in accordance with such
regulations as the Secretary may prescribe, an amount
equal to the amount of such erroneous payment (without
regard to whether any other amounts payable to such
State under such paragraph have been paid to such
State).
(f) Collection of unemployment compensation debts.--
(1) In general.--Upon receiving notice from any State
that a named person owes a covered unemployment
compensation debt to such State, the Secretary shall,
under such conditions as may be prescribed by the
Secretary--
(A) reduce the amount of any overpayment
payable to such person by the amount of such
covered unemployment compensation debt;
(B) pay the amount by which such overpayment
is reduced under subparagraph (A) to such State
and notify such State of such person's name,
taxpayer identification number, address, and
the amount collected; and
(C) notify the person making such overpayment
that the overpayment has been reduced by an
amount necessary to satisfy a covered
unemployment compensation debt.
If an offset is made pursuant to a joint return, the
notice under subparagraph (C) shall include information
related to the rights of a spouse of a person subject
to such an offset.
(2) Priorities for offset.--Any overpayment by a
person shall be reduced pursuant to this subsection--
(A) after such overpayment is reduced
pursuant to--
(i) subsection (a) with respect to
any liability for any internal revenue
tax on the part of the person who made
the overpayment;
(ii) subsection (c) with respect to
past-due support; and
(iii) subsection (d) with respect to
any past-due, legally enforceable debt
owed to a Federal agency; and
(B) before such overpayment is credited to
the future liability for any Federal internal
revenue tax of such person pursuant to
subsection (b).
If the Secretary receives notice from a State or States
of more than one debt subject to paragraph (1) or
subsection (e) that is owed by a person to such State
or States, any overpayment by such person shall be
applied against such debts in the order in which such
debts accrued.
(3) Notice; consideration of evidence.--No State may
take action under this subsection until such State--
(A) notifies the person owing the covered
unemployment compensation debt that the State
proposes to take action pursuant to this
section;
(B) provides such person at least 60 days to
present evidence that all or part of such
liability is not legally enforceable or is not
a covered unemployment compensation debt;
(C) considers any evidence presented by such
person and determines that an amount of such
debt is legally enforceable and is a covered
unemployment compensation debt; and
(D) satisfies such other conditions as the
Secretary may prescribe to ensure that the
determination made under subparagraph (C) is
valid and that the State has made reasonable
efforts to obtain payment of such covered
unemployment compensation debt.
(4) Covered unemployment compensation debt.--For
purposes of this subsection, the term ``covered
unemployment compensation debt'' means--
(A) a past-due debt for erroneous payment of
unemployment compensation due to fraud or the
person's failure to report earnings which has
become final under the law of a State certified
by the Secretary of Labor pursuant to section
3304 and which remains uncollected;
(B) contributions due to the unemployment
fund of a State for which the State has
determined the person to be liable and which
remain uncollected; and
(C) any penalties and interest assessed on
such debt.
(5) Regulations.--
(A) In general.--The Secretary may issue
regulations prescribing the time and manner in
which States must submit notices of covered
unemployment compensation debt and the
necessary information that must be contained in
or accompany such notices. The regulations may
specify the minimum amount of debt to which the
reduction procedure established by paragraph
(1) may be applied.
(B) Fee payable to Secretary.--The
regulations may require States to pay a fee to
the Secretary, which may be deducted from
amounts collected, to reimburse the Secretary
for the cost of applying such procedure. Any
fee paid to the Secretary pursuant to the
preceding sentence shall be used to reimburse
appropriations which bore all or part of the
cost of applying such procedure.
(C) Submission of notices through Secretary
of Labor.--The regulations may include a
requirement that States submit notices of
covered unemployment compensation debt to the
Secretary via the Secretary of Labor in
accordance with procedures established by the
Secretary of Labor. Such procedures may require
States to pay a fee to the Secretary of Labor
to reimburse the Secretary of Labor for the
costs of applying this subsection. Any such fee
shall be established in consultation with the
Secretary of the Treasury. Any fee paid to the
Secretary of Labor may be deducted from amounts
collected and shall be used to reimburse the
appropriation account which bore all or part of
the cost of applying this subsection.
(6) Erroneous payment to State.--Any State receiving
notice from the Secretary that an erroneous payment has
been made to such State under paragraph (1) shall pay
promptly to the Secretary, in accordance with such
regulations as the Secretary may prescribe, an amount
equal to the amount of such erroneous payment (without
regard to whether any other amounts payable to such
State under such paragraph have been paid to such
State).
(g) Review of reductions.--No court of the United States
shall have jurisdiction to hear any action, whether legal or
equitable, brought to restrain or review a reduction authorized
by subsection (c), (d), (e), or (f). No such reduction shall be
subject to review by the Secretary in an administrative
proceeding. No action brought against the United States to
recover the amount of any such reduction shall be considered to
be a suit for refund of tax. This subsection does not preclude
any legal, equitable, or administrative action against the
Federal agency or State to which the amount of such reduction
was paid or any such action against the Commissioner of Social
Security which is otherwise available with respect to
recoveries of overpayments of benefits under section 204 of the
Social Security Act.
(h) Federal agency.--For purposes of this section, the term
``Federal agency'' means a department, agency, or
instrumentality of the United States, and includes a Government
corporation (as such term is defined in section 103 of title 5,
United States Code).
(i) Treatment of payments to States.--The Secretary may
provide that, for purposes of determining interest, the payment
of any amount withheld under subsection (c), (e), or (f) to a
State shall be treated as a payment to the person or persons
making the overpayment.
(j) Cross reference.--For procedures relating to agency
notification of the Secretary, see section 3721 of title 31,
United States Code.
(k) Refunds to certain fiduciaries of insolvent members of
affiliated groups.--Notwithstanding any other provision of law,
in the case of an insolvent corporation which is a member of an
affiliated group of corporations filing a consolidated return
for any taxable year and which is subject to a statutory or
court-appointed fiduciary, the Secretary may by regulation
provide that any refund for such taxable year may be paid on
behalf of such insolvent corporation to such fiduciary to the
extent that the Secretary determines that the refund is
attributable to losses or credits of such insolvent
corporation.
(l) Explanation of reason for refund disallowance.--In the
case of a disallowance of a claim for refund, the Secretary
shall provide the taxpayer with an explanation for such
disallowance.
(m) Earliest date for certain refunds.--No credit or refund
of an overpayment for a taxable year shall be made to a
taxpayer before the 15th day of the second month following the
close of such taxable year if a credit is allowed to such
taxpayer under section 24 (by reason of subsection (d) thereof)
or 32 for such taxable year.
(n) Misdirected direct deposit refund.--Not later than the
date which is 6 months after the date of the enactment of the
Taxpayer First Act, the Secretary shall prescribe regulations
to establish procedures to allow for--
(1) taxpayers to report instances in which a refund
made by the Secretary by electronic funds transfer was
not transferred to the account of the taxpayer;
(2) coordination with financial institutions for the
purpose of--
(A) identifying the accounts to which
transfers described in paragraph (1) were made;
and
(B) recovery of the amounts so transferred;
and
(3) the refund to be delivered to the correct account
of the taxpayer.
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