The taxpayer is required to disclose various types of information depending on the context and the specific tax forms or situations involved. Here are the key disclosures required by the taxpayer:
- General Tax Return Information:
- Return: The term “return” includes any tax or information return, declaration of estimated tax, or claim for refund required by, or provided for or permitted under, the provisions of the Internal Revenue Code (IRC) which is filed with the Secretary by, on behalf of, or with respect to any person. This includes supporting schedules, attachments, or lists which are supplemental to, or part of, the return so filed (IRC § 6103(b)(1)).
- Return Information: This includes a taxpayer’s identity, the nature, source, or amount of 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 the determination of the existence, or possible existence, of liability (or the amount thereof) of any person under the IRC for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense (IRC § 6103(b)(2)).
- Specific Situations:
- Form 8288 and Form 8288-A: For dispositions of U.S. real property interests by foreign persons, the taxpayer must disclose the amount realized from the sale, the amount of tax withheld, and other relevant details. The forms must include the taxpayer's identifying information, such as name, address, and Taxpayer Identification Number (TIN) (IRM 3.21.25 and IRM 3.21.261).
- Form 8288-B: When seeking a reduced withholding certificate, the taxpayer must disclose detailed information about the transaction and the basis for the reduced withholding request (IRM 3.21.25).
- Form 8805: For foreign partners in a partnership, the taxpayer must disclose the partner’s share of effectively connected taxable income and the amount of tax withheld (IRM 3.21.25).
- Electronic Consents:
- Consent to Disclose or Use Tax Return Information: When a taxpayer consents to the disclosure or use of their tax return information, the consent must include specific mandatory statements and must be signed by the taxpayer. The consent must be knowing and voluntary, and it must specify the duration of the consent (Rev. Proc. 2013-14).
- Freedom of Information Act (FOIA) Requests:
- FOIA Requests: When submitting a FOIA request, the taxpayer must provide sufficient information to establish their identity and right to access the requested records. This may include a signature, address, and one other identifier, or a notarized statement or statement made under penalty of perjury (PMTA 2021-008).
- Confidentiality and Disclosure:
- Confidentiality of Returns and Return Information: Taxpayers must be aware that their tax return information is protected under IRC § 6103, which restricts the disclosure of such information except as authorized by law. Unauthorized disclosure can result in civil and criminal penalties (IRC § 6103, IRC § 7213, IRC § 7213A, and IRC § 7431).
In summary, the taxpayer is required to disclose detailed information on various tax forms, provide consents for specific uses or disclosures of their tax return information, and ensure that their identity and right to access information are properly authenticated in specific contexts such as FOIA requests. The confidentiality of their tax return information is protected by law, and unauthorized disclosures are subject to penalties.
Sources:
§ 6103. Confidentiality and disclosure of returns and return information
§ 6011. General requirement of return, statement, or list
IRM Part 3. Submission Processing. Chapter 21. International Returns and Documents Analysis. Section 25. Miscellaneous Tax Returns
IRM Part 4. Examining Process. Chapter 70. TE/GE Examinations. Section 11. Administrative Matters
IRM Part 3. Submission Processing. Chapter 21. International Returns and Documents Analysis. Section 261. Foreign Investment in Real Property Tax Act (FIRPTA)
Rev. Proc. 2013-14
PMTA 2021-008
