What is 'return information' under IRC 6103(b)(2) and does it include audit workpapers?

The definition of 'return information' in IRC 6103(b)(2) is deliberately broad. It encompasses: any information a taxpayer provides to the IRS in connection with a return or investigation; any information the IRS gathers about the taxpayer's liability from any source; the fact that a return was or was not filed; the fact that a return is under examination; the results of any audit or investigation; any IRS determination, ruling, or notice related to the taxpayer's liability; and information regarding a person's tax-exempt status. This definition is broad enough to include audit workpapers, examination reports, revenue agent reports, and even informal notes taken by an IRS examiner during a conversation with the taxpayer. 'Return information' does not require a filed return as its source -- information gathered by the IRS independently (from summonses, third-party reports, or its own investigation) is also return information. Verify the current scope of IRC 6103(b)(2) at IRS.gov and in the current IRC text before advising a client.

When can the IRS share return information with other federal government agencies?

The IRS may share return information with other federal agencies only under a specific exception in IRC 6103. The two most significant provisions are IRC 6103(h) and IRC 6103(l). IRC 6103(h) permits disclosure to IRS and Department of Justice personnel who need the information for federal tax administration, including civil tax litigation and criminal tax prosecution. This is the statutory basis for IRS referrals to DOJ Tax Division. IRC 6103(l) is a collection of specific statutory exceptions that permit disclosure for non-tax government purposes: these include disclosure to the Social Security Administration, the Department of Labor, and certain other agencies for specifically enumerated program purposes. Each subsection of 6103(l) is separately authorized and narrowly scoped. There is no general authority for the IRS to share return information with non-tax-administration federal agencies. Routine or bulk data-sharing with agencies whose purposes are not specifically enumerated in the IRC would require express new statutory authority. Practitioners should direct clients with concerns about government data access to IRS Publication 1 and the specific IRC 6103 subsections that govern any disclosure they are concerned about. Verify all current inter-agency disclosure authorities at IRS.gov.

Does IRC 6103 protect information about a taxpayer that was provided to the IRS by a third party rather than by the taxpayer?

Yes. The definition of 'return information' in IRC 6103(b)(2) explicitly includes information gathered by the IRS with respect to a taxpayer's liability from any source -- not only information the taxpayer submitted directly. This means that W-2 and 1099 data reported by employers and payers, information obtained through IRS summonses to banks or brokers, information provided by informants, information gathered in the course of an audit of a third party who did business with the taxpayer, and information gathered through international information exchange agreements are all 'return information' and are protected under IRC 6103. This is a critical point for practitioners to understand: a client cannot bypass IRC 6103's protections by arguing that the information at issue was not actually submitted by the taxpayer on a return. The fact that the IRS gathered the information in connection with the taxpayer's tax liability is sufficient to make it return information. Verify the current scope of IRC 6103(b)(2) and its application to third-party-sourced information at IRS.gov and in the current IRC text.

What is IRC 6103(e) and who qualifies as a person with a material interest?

IRC 6103(e) permits the IRS to disclose return information to certain persons who have a 'material interest' in the return, even without formal authorization through Form 8821 or Form 2848. The persons enumerated in IRC 6103(e) include: the taxpayer whose return is at issue; in the case of a joint return, either spouse; in the case of a deceased taxpayer, the executor or administrator of the estate; partners in a partnership (with respect to partnership return information); shareholders of an S corporation holding at least 1 percent of the outstanding stock (with respect to the S corporation's return); and certain other persons with a legally cognizable interest in the information. The 'material interest' exception is narrower than it may initially appear: it does not extend to any person who has a business or financial relationship with the taxpayer, only to the specific categories listed in the statute. A business partner who is not a partner in a partnership for federal tax purposes does not qualify under IRC 6103(e). Verify the current list of qualifying persons and any applicable conditions at IRS.gov and in the current IRC text before advising clients about their rights to access another person's return information.

What is IRC 6103(h) and how is it used for IRS referrals to the Department of Justice?

IRC 6103(h) is the primary statutory authorization for the IRS to share return information with the Department of Justice and other federal officers and employees for tax administration purposes. IRC 6103(h)(1) permits disclosure to IRS officers and employees whose official duties require knowledge of the information. IRC 6103(h)(2) permits disclosure to officers and employees of the DOJ who are personally and directly engaged in the preparation for, or conduct of, federal grand jury or federal judicial proceedings pertaining to tax administration. IRC 6103(h)(3) permits disclosure to a federal agency investigating tax-related crimes. IRC 6103(h) is the statutory basis for the IRS-DOJ referral mechanism in criminal tax cases: when the IRS's Criminal Investigation (CI) division has developed a case and refers it to the DOJ Tax Division for prosecution, it does so under IRC 6103(h). Practitioners who suspect their client may be under criminal investigation should understand that the IRS may share detailed return information with DOJ criminal prosecutors under IRC 6103(h) before any charges are filed. The referral and the scope of information shared are generally not disclosed to the taxpayer or their representative until the investigation is more advanced. Verify current IRC 6103(h) requirements and referral procedures at IRS.gov and with qualified legal counsel.

What is IRC 6103(l) and what non-tax government disclosures does it authorize?

IRC 6103(l) is a collection of specific statutory exceptions that authorize the IRS to disclose return information to federal agencies for purposes outside of direct tax administration. Each subsection of IRC 6103(l) is separately enacted and narrowly limited to the specific program or agency described. Examples of disclosures authorized by IRC 6103(l) include: disclosure to the Social Security Administration for purposes of administering Social Security and Medicare programs (IRC 6103(l)(1)); disclosure to the Department of Labor for purposes of administering employment programs (IRC 6103(l)(2)); disclosure to certain federal agencies for purposes of verifying income in connection with federal financial assistance programs; and disclosure to the Pension Benefit Guaranty Corporation for pension program purposes. The key point for practitioners is that there is no general or residual authority for the IRS to share return information with any federal agency that has a legitimate interest in tax compliance or taxpayer financial data. Each sharing arrangement must be traceable to a specific subsection of IRC 6103(l) or another enumerated IRC 6103 exception. Practitioners should verify at IRS.gov which agencies have specific IRC 6103(l) access and what limitations apply to each type of disclosure.

What is the role of IRC 6103(p) procedural requirements for all disclosures?

IRC 6103(p) establishes the procedural safeguards that must accompany all authorized disclosures of return information under IRC 6103. These requirements apply to every federal agency, state agency, and other entity that receives return information under any IRC 6103 exception. The core procedural requirements under IRC 6103(p) include: maintaining the information under conditions designed to protect confidentiality no less stringent than those applicable to IRS employees; establishing procedures for access control and information security; notifying the IRS of any unauthorized disclosure; reporting annually to the Joint Committee on Taxation regarding the safeguards in place; and permitting the IRS to audit the receiving agency's compliance. An agency that fails to comply with IRC 6103(p) requirements may lose its access to return information entirely, and its employees may face IRC 7213 criminal penalties. For practitioners, IRC 6103(p) is relevant because it creates a visible compliance infrastructure around authorized disclosures: if a client has questions about what safeguards a particular agency maintains around their tax information, IRC 6103(p) is the statutory source of those requirements. Verify current IRC 6103(p) requirements and the IRS's published safeguard procedures at IRS.gov.

IRC 6103 Tax Return Confidentiality Disclosure Guide

Q: How does a taxpayer authorize the IRS to disclose return information to a third party?

IRC 6103(c) is the primary consent-based disclosure provision. It permits the IRS to disclose return information to a designated third party if the taxpayer has consented in writing. The consent must be explicit and in writing; a verbal authorization is not sufficient for IRS disclosure purposes. In practice, taxpayer consent for third-party disclosure is accomplished using either Form 2848 (Power of Attorney and Declaration of Representative, which authorizes a representative to act on the taxpayer's behalf before the IRS) or Form 8821 (Tax Information Authorization, which authorizes a designee to receive and inspect return information but does not grant authority to represent the taxpayer). A Form 8821 is typically used when a lender, estate attorney, divorce attorney, or business partner needs access to the taxpayer's tax information without needing to represent the taxpayer. The consent under IRC 6103(c) is limited to what is specified in the authorization form; it does not constitute a blanket authorization for all future disclosures. Verify current form requirements and authorization scope at IRS.gov.

Q: What is the difference between Form 4506, Form 4506-T, and Form 4506-C?

These three forms each request different things from the IRS and serve different purposes. Form 4506 (Request for Copy of Tax Return) requests an actual copy of a filed tax return, including all schedules and attachments. It is used by taxpayers, their representatives, or third parties (with the taxpayer's consent) who need the physical return document. Processing typically takes several weeks, and a fee applies. Form 4506-T (Request for Transcript of Tax Return) requests a transcript of tax information rather than a copy of the actual return. Transcripts come in several varieties: a tax return transcript (summarizes most line items from the original return), a tax account transcript (shows basic data and any account adjustments), a record of account transcript (combines the two), and a wage and income transcript (shows information reported by third parties, such as W-2s and 1099s). Form 4506-T is free and available to taxpayers and authorized representatives. Form 4506-C (IVES Request for Transcript of Tax Return) is used by mortgage lenders, financial institutions, and other authorized Income Verification Express Service (IVES) participants to request transcripts directly. IVES participants have a separate registration and usage agreement with the IRS. Practitioners must use the correct form for the client's situation. Verify current form requirements, fees, and processing times at IRS.gov.

Q: What are the criminal penalties for unauthorized disclosure under IRC 7213?

IRC 7213 establishes criminal penalties for the willful unauthorized disclosure of return information. An officer or employee of the United States (or a person described in IRC 6103(n), meaning a contractor with access to return information under a contract with the IRS) who willfully discloses return information in violation of IRC 6103 commits a felony. The penalty is a fine of up to $5,000, imprisonment of up to 5 years, or both, plus the costs of prosecution. If the violator is a federal employee, the conviction results in dismissal from office or discharge from employment. IRC 7213A, added later, covers the willful unauthorized inspection of return information (i.e., looking at information without a legitimate reason to do so, even without disclosing it to anyone else). IRC 7213A is a misdemeanor punishable by fines of up to $1,000, imprisonment of up to 1 year, or both. These criminal provisions apply not only to IRS employees but also to federal contractors, certain state agency employees with access to federal return information, and persons who receive return information through a proper IRC 6103(c) consent disclosure and then re-disclose it to unauthorized parties. Verify current penalty amounts and the full scope of IRC 7213 and 7213A at IRS.gov and in the current IRC text.

Q: What civil damages are available under IRC 7431 for unauthorized disclosure?

IRC 7431 provides a civil cause of action for taxpayers whose return information has been disclosed in violation of IRC 6103. A taxpayer may bring a civil action for damages against the United States in federal district court. The damages available under IRC 7431 are the greater of: (1) actual damages sustained by the taxpayer as a result of the unauthorized disclosure; or (2) liquidated damages of $1,000 per act of unauthorized disclosure. In addition, the court may award punitive damages if the unauthorized disclosure was willful or the result of gross negligence. Attorney fees and litigation costs are also available to a prevailing plaintiff. The action must generally be brought within 2 years after the date of discovery of the unauthorized disclosure (verify current statute of limitations at IRS.gov). IRC 7431 applies to unauthorized inspections (violations of IRC 7213A) as well as unauthorized disclosures. Practitioners should advise clients who discover a potential unauthorized disclosure to document the incident promptly, preserve evidence, and consult qualified legal counsel about their options under IRC 7431. Verify all current damage amounts, limitations periods, and filing requirements at IRS.gov and in the current IRC text.

Q: Can the IRS share return information with state tax authorities?

Yes, but only under specific statutory authority and subject to procedural requirements. IRC 6103(d) permits the IRS to disclose return information to officers and employees of state tax agencies for the purpose of state tax administration. This is a well-established exception that enables information sharing between the IRS and state revenue departments, including notification of federal audit adjustments that may affect state tax liability. IRC 6103(k)(4) also permits disclosure to state agencies for certain other specifically authorized purposes. All such disclosures are subject to the procedural requirements in IRC 6103(p), which requires that the receiving agency maintain the information under conditions and procedures designed to ensure confidentiality that are not less stringent than those applicable to federal employees. A state agency that improperly discloses information it received from the IRS under IRC 6103(d) may cause its state employees to be subject to federal criminal penalties under IRC 7213, and the state agency's access to federal information may be terminated. Practitioners whose clients are under federal examination should advise them that a federal adjustment may trigger a notification to the relevant state tax authority. Verify current IRC 6103(d) requirements and notification procedures at IRS.gov.

Q: What are the practitioner's obligations under Circular 230 regarding confidential client information?

Circular 230 (31 C.F.R. Part 10, governing practice before the IRS) imposes confidentiality obligations on federally authorized tax practitioners (EAs, CPAs, attorneys, and others) that operate alongside, but are distinct from, IRC 6103. Section 10.20 of Circular 230 addresses a practitioner's duty to submit records and information requested by the IRS -- it does not authorize disclosure of a client's confidential information to third parties in violation of IRC 6103 or the practitioner's professional ethical obligations. A practitioner who discloses client information (whether return information obtained from the IRS or information provided directly by the client) to an unauthorized third party without the client's consent may violate Circular 230, applicable state ethics rules, and, depending on the circumstances, IRC 7213 (if the information constitutes return information the practitioner received from the IRS under a specific IRC 6103 exception). Practitioners should be especially careful when receiving subpoenas or third-party summonses seeking client information: the correct response is to involve qualified legal counsel, assert applicable privileges, and follow the client's instructions, rather than voluntarily producing information without a court order. Verify current Circular 230 requirements at the Office of Professional Responsibility (OPR) section of IRS.gov.

Q: How does IRC 6103 interact with the IRS summons power under IRC 7602?

IRC 6103 and IRC 7602 operate in adjacent but distinct domains. IRC 7602 governs the IRS's authority to compel production of information and testimony from taxpayers and third parties. IRC 6103 governs what the IRS may do with return information once it has it, and in particular who else the IRS may share that information with. When the IRS issues a summons under IRC 7602 and receives return information in response, that information becomes 'return information' subject to IRC 6103's confidentiality requirements and may only be shared with third parties under an applicable IRC 6103 exception. Conversely, IRC 6103 does not limit the IRS's ability to use return information in its own examinations, audits, and collection activities -- internal IRS use in the course of tax administration is not a 'disclosure' within the meaning of IRC 6103. The most significant interaction between the two statutes occurs in criminal tax cases: when the IRS refers a matter to the DOJ for criminal prosecution under IRC 6103(h), it may disclose return information to DOJ attorneys and investigative agents who need it for the prosecution. Practitioners representing clients in both civil and potential criminal matters should understand this referral mechanism and how it affects what information the IRS may share with law enforcement. Verify current interaction between IRC 6103 and IRC 7602 at IRS.gov and with qualified legal counsel.

1. What Is IRC 6103 and Why Does It Matter to Practitioners?

IRC 6103 is the foundational confidentiality statute for federal tax information. It establishes a general rule: returns and return information are confidential and may not be disclosed by the IRS, or by officers or employees of the United States, except as specifically authorized by the Internal Revenue Code. The statute then enumerates a series of exceptions -- each one a carefully bounded authorization, not a general grant of discretion.

For tax practitioners, IRC 6103 is relevant in at least four recurring situations. First, when a client wants to know what information the IRS can share with other government agencies or third parties. Second, when a practitioner needs to obtain a client's tax records from the IRS and must use the correct authorization form. Third, when a client receives a summons or subpoena seeking tax information, requiring the practitioner to understand what protections exist. Fourth, when a practitioner receives or shares return information in the course of representing a client, creating potential liability under IRC 7213 and IRC 7431.

In 2026, practitioners have also noted an increase in client questions about what federal agencies can access their tax records and under what authority. The correct response to those questions is grounded in IRC 6103: the IRS may share return information with other agencies only under a specific statutory exception, and there is no general authority for routine data-sharing with agencies whose purposes are not specifically enumerated in the Code. Practitioners should direct clients to IRS Publication 1 and the relevant IRC 6103 subsections for a factual answer, and verify all current sharing arrangements at IRS.gov.

Critical: "Return Information" Is Broader Than the Tax Return Itself

IRC 6103(b)(2) defines "return information" to include any information a taxpayer provides to the IRS, any information gathered by the IRS with respect to the taxpayer's liability (from any source, including third-party summonses and informants), and even the fact that a return was or was not filed. A practitioner who discloses ANY of this information without authorization may be subject to IRC 7213 criminal penalties -- even if the actual tax return was never disclosed. The scope of protected information is substantially broader than most practitioners and clients assume. Verify the current definition at IRS.gov and in the current IRC text before advising clients.

2. What Constitutes "Return Information" Under IRC 6103(b)(2)

The definition of "return information" in IRC 6103(b)(2) is deliberately and broadly written. It encompasses:

Any information a taxpayer provides to the IRS in connection with a return or an investigation into their tax liability.
Any information the IRS gathers about the taxpayer's liability from any source -- including third-party summonses, informants, international information exchanges, and independent IRS investigation.
The fact that a return was or was not filed.
The fact that a taxpayer's return is under examination.
The results of any audit or examination, including the revenue agent report (RAR).
Any determination, ruling, or notice the IRS issues regarding the taxpayer's liability.
Information regarding a person's tax-exempt status under IRC 501(c).
Taxpayer identity information (name, address, TIN), which is itself separately defined in IRC 6103(b)(6).

The practical implication: "return information" does not require a filed return as its origin. An IRS examiner's handwritten notes from a phone call with a third party, a FBAR filing obtained by the IRS, a wage and income transcript compiled from third-party 1099s, and a tax lien notice are all "return information." This breadth has direct consequences for practitioners who receive information from the IRS through authorized channels: the authorization covers the original purpose, not open-ended downstream disclosure.

Audit workpapers held by the IRS are return information. Examination files are return information. The fact that the IRS referred a case to the DOJ is return information. The practitioner must assume that anything touching the IRS's knowledge of a client's tax liability falls within the protected category, and seek specific authorization before sharing it.

Practitioner Alert: IRC 6103(c) Consent Is the Primary Authorization Tool

A client who wants the practitioner to discuss their tax matters with a third party -- a lender, estate attorney, divorce attorney, or business partner -- must provide written consent. The correct mechanism is either Form 2848 (Power of Attorney, which authorizes representation before the IRS) or Form 8821 (Tax Information Authorization, which authorizes a designee to receive and inspect return information without representation authority). A blanket verbal consent is not sufficient for IRS disclosure purposes under IRC 6103(c). The authorization must identify the specific type of return information covered, the period covered, and the designee. Verify current Form 2848 and Form 8821 requirements at IRS.gov.

IRC 6103(c) is the practitioner's primary tool for enabling third-party access to a client's tax information. It permits the IRS to disclose return information to a person designated by the taxpayer, provided the taxpayer has consented in writing in such manner and time as the Secretary may prescribe. The implementing regulations and IRS guidance prescribe the Form 2848 and Form 8821 as the standard vehicles for this consent.

Form 2848: Power of Attorney and Declaration of Representative

Form 2848 authorizes a representative to act on the taxpayer's behalf before the IRS, including receiving and inspecting return information. It is the appropriate form when the practitioner needs to represent the client in correspondence, audits, appeals, or collection proceedings. A Form 2848 automatically revokes prior powers of attorney for the same tax periods unless the practitioner indicates otherwise. It must be signed by the taxpayer and countersigned by the representative, and the representative must be qualified to practice before the IRS (an attorney, CPA, enrolled agent, or other person described in Circular 230).

Form 8821: Tax Information Authorization

Form 8821 authorizes a designee to inspect and receive return information for the specific tax years and tax forms identified in the form. Unlike Form 2848, it does not authorize representation -- the designee cannot sign documents, represent the taxpayer, or receive tax refunds on the taxpayer's behalf. Form 8821 is the appropriate form when a lender, title company, estate attorney, or other third party needs to review tax information without becoming the taxpayer's representative. It is also sometimes used by practitioners who only need information access, not representation authority.

Scope and Limitations of IRC 6103(c) Consent

The consent authorized by IRC 6103(c) is limited to the scope stated in the authorization. A Form 8821 authorizing access to Form 1040 returns for 2021 through 2023 does not authorize disclosure of information about a 2024 return, nor does it authorize disclosure of information from an unrelated audit. Practitioners should confirm that the authorization on file covers the specific information at issue before relying on IRC 6103(c) to share it with a third party. Relatedly, an IRC 6103(c) consent does not authorize the recipient to re-disclose the information further: the third-party designee who receives information under a Form 8821 is subject to the same confidentiality obligations, and unauthorized re-disclosure is a potential IRC 7213A misdemeanor.

Practitioner Alert: Form 4506 vs. 4506-T vs. 4506-C

Form 4506 requests an actual copy of a filed tax return, including all schedules and attachments. A fee applies, and processing can take several weeks. Use this when the client (or a court) needs the physical return document, not just a summary of its contents.

Form 4506-T requests a transcript of tax information. Several transcript types are available: a tax return transcript (summarizes most line items from the original return), a tax account transcript (basic data and account adjustments), a record of account (combines both), and a wage and income transcript (third-party reported amounts such as W-2s and 1099s). Form 4506-T is free and is the appropriate form for most practitioners and taxpayers needing transcript-level access.

Form 4506-C is reserved for mortgage lenders, financial institutions, and other entities participating in the IRS's Income Verification Express Service (IVES) program. IVES participants have a separate IRS registration agreement and use Form 4506-C to obtain transcripts efficiently for income verification in loan underwriting. Practitioners who are not IVES participants should not use Form 4506-C. Verify current requirements and IVES participation rules at IRS.gov.

4. IRC 6103(e): Disclosure to Persons with a Material Interest

IRC 6103(e) permits the IRS to disclose return information directly to persons who have a "material interest" in the return -- without requiring a Form 8821 or Form 2848. The categories of persons with a material interest are enumerated in the statute and are narrower than they may initially appear:

The taxpayer whose return is at issue (always).
Either spouse on a joint return, with respect to return information from that joint return.
The executor, administrator, or personal representative of a deceased taxpayer's estate, with respect to the decedent's return.
Partners in a partnership, with respect to the partnership return and the partner's distributive share information.
Shareholders of an S corporation holding at least 1 percent of outstanding stock, with respect to the S corporation's return and any shareholder's pro-rata share information.
Certain other persons who have a legal or contractual right in the information, as specified in subsections of IRC 6103(e).

This exception does not extend to general business associates, spouses in cases not involving a joint return, creditors, or any person with merely a financial interest in the taxpayer's affairs. Practitioners advising clients about their right to access another person's return information should verify the current list of qualifying categories at IRS.gov and confirm that the specific relationship qualifies before making a disclosure request.

5. IRC 6103(h): IRS and DOJ Disclosure for Tax Administration

IRC 6103(h) is one of the most consequential exceptions for practitioners advising clients who may be under criminal investigation. It permits the IRS to disclose return information to Department of Justice attorneys and investigative agents who are personally and directly engaged in the preparation for, or conduct of, a proceeding pertaining to tax administration. This covers:

Federal grand jury proceedings related to tax violations.
Federal judicial proceedings (both civil and criminal) involving tax matters.
Criminal investigations conducted by IRS Criminal Investigation (CI) and referred to the DOJ Tax Division.

Practitioner Alert: IRC 6103(h) Is the Statutory Basis for DOJ Criminal Referrals

When the IRS's Criminal Investigation (CI) division develops a case and refers it to the DOJ Tax Division for criminal prosecution or to DOJ Civil Tax for civil litigation, it does so under IRC 6103(h). Return information -- including detailed examination files, revenue agent reports, bank records obtained by summons, and CI investigative reports -- may be shared with DOJ attorneys and investigators before any charges are filed and without notifying the taxpayer. Practitioners who suspect their client may be under criminal investigation should understand this referral mechanism and the role it plays in case development. The moment a practitioner has reason to believe criminal referral is possible, qualified legal counsel (an attorney with criminal tax experience) should be engaged immediately. The interaction between IRC 6103(h) and the IRS's dual function in civil and criminal matters is also addressed in our guide on IRC 7602 IRS summons power and third-party summons. Verify current IRC 6103(h) referral procedures at IRS.gov.

A critical practitioner consideration: the decision to refer a case to DOJ under IRC 6103(h) is internal to the IRS and is not disclosed to the taxpayer or their representative at the time it occurs. The first indication a practitioner may receive that a criminal referral has been made is often a subpoena or a proffer request from DOJ -- at which point the nature of the matter has changed fundamentally. Early recognition of criminal indicators (summonses to third parties, abrupt suspension of a civil examination, requests for bank records) is essential to protecting the client's interests.

6. IRC 6103(k) and (l): Disclosure for Tax Administration and Non-Tax Purposes

IRC 6103(k): Specific Disclosures for Tax Administration

IRC 6103(k) contains a series of specific exceptions allowing the IRS to disclose return information for tax-administration-adjacent purposes that fall outside the core IRS-DOJ referral context of IRC 6103(h). These include disclosure to federal officers and employees for certain background check and security clearance purposes, disclosure to tax practitioners subject to Circular 230 investigations for purposes of professional misconduct proceedings, and disclosure to state agencies involved in tax administration under specific conditions.

IRC 6103(l): Disclosures for Non-Tax Federal Programs

IRC 6103(l) is the primary repository of exceptions for disclosures to federal agencies that have purposes outside direct tax administration. Each subsection of IRC 6103(l) is separately enacted and narrowly scoped. There is no general or residual authority for the IRS to share return information with any federal agency that has a legitimate policy interest in financial data. Each sharing arrangement must trace to a specific IRC 6103(l) subsection. Examples include disclosures to the Social Security Administration for administering Social Security and Medicare programs, disclosures to the Department of Labor for employment program purposes, and disclosures related to federal financial assistance income verification. Practitioners advising clients who are concerned about particular inter-agency data sharing should identify the specific IRC 6103(l) subsection that would need to authorize the sharing in question and verify its current scope at IRS.gov.

Client Inquiries About Government Data Access Have Increased in 2026

Practitioners are receiving more client questions about which government agencies can access their tax records and under what authority. The correct answer is grounded in IRC 6103: the IRS may share return information with other federal agencies only under a specific statutory exception, typically an enumerated subsection of IRC 6103(l). There is no general inter-agency data-sharing authority, and routine sharing with non-tax-administration agencies requires express statutory authorization in the Code.

When a client raises concerns about a specific agency or program, the practitioner's first step is to identify whether an IRC 6103 exception covers that agency and program. If no exception applies, disclosure would be unauthorized. Practitioners should direct clients to IRS Publication 1 (Your Rights as a Taxpayer) and to the specific IRC 6103 subsections relevant to their concern. All current inter-agency sharing arrangements and applicable limitations should be verified at IRS.gov before advising clients.

7. IRC 7213: Criminal Penalties for Unauthorized Disclosure

IRC 7213 establishes criminal liability for the willful unauthorized disclosure of returns or return information. The statute reaches a broad set of potential violators:

Officers and employees of the United States, including IRS employees at any level.
Federal contractors with access to return information under IRC 6103(n), including technology contractors and data processing vendors.
State and local government employees who receive federal return information under IRC 6103(d) or other exceptions and improperly disclose it.
Persons who receive return information under an IRC 6103(c) consent disclosure and then re-disclose it to unauthorized third parties.

The penalty for a willful unauthorized disclosure under IRC 7213 is a felony: fines up to $5,000, imprisonment up to 5 years, or both, plus costs of prosecution. Federal employees convicted under IRC 7213 are automatically dismissed from office or discharged from employment.

Critical: IRC 7213 Unauthorized Disclosure Is a Federal Felony

An officer or employee of the United States (or a contractor) who willfully discloses return information in violation of IRC 6103 commits a felony punishable by up to 5 years imprisonment plus fines. Conviction of a federal employee results in mandatory dismissal. IRC 7213A (unauthorized inspection, without disclosure to a third party) is a misdemeanor punishable by up to 1 year imprisonment. A taxpayer who receives return information through a proper IRC 6103(c) consent disclosure and then re-discloses it to an unauthorized party may also be subject to IRC 7213A. The key element is willfulness: accidental or inadvertent disclosure is not a criminal violation, but reckless or deliberate disclosure is. Practitioners who discover that their client's return information has been improperly disclosed should advise the client of their rights under IRC 7431 (civil damages) and consult qualified legal counsel. Verify all current penalty provisions at IRS.gov and in the current IRC text.

IRC 7213A: Unauthorized Inspection

IRC 7213A, added as part of the Internal Revenue Service Restructuring and Reform Act of 1998, closes a gap that existed in the original statute: it prohibits the willful unauthorized inspection of return information, even without disclosure to a third party. An IRS employee who accesses a celebrity's tax file out of curiosity -- without any disclosure to anyone -- commits a misdemeanor under IRC 7213A. This provision has been used extensively in IRS employee discipline cases and has resulted in terminations and criminal convictions. Practitioners whose clients are concerned about potential unauthorized inspection of their records may wish to inquire whether an improper inspection has occurred through the available civil remedy under IRC 7431.

8. IRC 7431: Civil Damages for Unauthorized Disclosure or Inspection

IRC 7431 provides a taxpayer with a private right of action for civil damages when the IRS or its employees (or contractors, state agency employees with access to federal return information, or certain other persons) make an unauthorized disclosure or inspection of return information in violation of IRC 6103 or IRC 7213A. The taxpayer may bring the action in federal district court.

The damages available under IRC 7431 are the greater of:

Actual damages sustained as a result of the unauthorized disclosure or inspection, or
Liquidated damages of $1,000 per act of unauthorized disclosure or inspection (where actual damages cannot be established or are lower).

In addition, the court may award:

Punitive damages if the unauthorized disclosure or inspection was willful or the result of gross negligence.
Attorney fees and costs if the taxpayer prevails.

The action must generally be brought within 2 years of the date of discovery of the unauthorized disclosure or inspection (verify current limitations period at IRS.gov). A taxpayer who suspects an unauthorized disclosure has occurred should document the circumstances promptly, preserve any evidence of how they discovered the disclosure, and consult qualified legal counsel about whether a claim under IRC 7431 is viable.

See our related guides on IRC 7525 federally authorized tax practitioner privilege and IRC 7521 IRS interview rights and taxpayer bill of rights for related taxpayer protection provisions.

9. Form 4506, 4506-T, and 4506-C: Choosing the Correct Request Form

Practitioners routinely need to obtain tax records from the IRS on behalf of clients, and the three primary request forms are frequently confused. Each serves a distinct purpose, and using the wrong form results in delays, rejections, or the wrong type of record being produced.

Feature	Form 4506	Form 4506-T	Form 4506-C (IVES)
What is produced	Actual copy of filed return with all schedules	Transcript (summary) of return data	Transcript (IVES program, expedited)
Fee	Yes (per return year)	No charge	IVES participant fee structure
Processing time	Several weeks (75 days for older years)	Days to 1-2 weeks (online faster)	Expedited (IVES SLA)
Who can use it	Taxpayer, authorized representative	Taxpayer, authorized representative	Registered IVES participants only
Common use case	Court filings, historical tax disputes	Tax preparation, IRS correspondence	Mortgage underwriting, income verification

Transcript types available on Form 4506-T include the tax return transcript (most line items from original return), the tax account transcript (adjustments, balance, and payment history), the record of account (combines both), and the wage and income transcript (W-2s, 1099s, and other third-party reported amounts). The wage and income transcript is particularly useful when preparing back tax returns for clients who no longer have their original information documents.

See also our guide on Form 2848 power of attorney and tax representative authorization for the authorization form required before requesting transcripts on a client's behalf.

10. Circular 230 and IRC 6103: Practitioner Confidentiality Obligations

Circular 230 (31 C.F.R. Part 10) governs practice before the IRS and imposes professional conduct obligations on federally authorized tax practitioners, including enrolled agents, CPAs, attorneys, and enrolled actuaries. Circular 230's confidentiality obligations are distinct from, but operate alongside, IRC 6103.

Section 10.20 of Circular 230 addresses a practitioner's obligation to promptly submit records and information requested by the IRS. This provision does not, however, authorize the practitioner to disclose a client's confidential information to the IRS or to third parties in excess of what is required by the request. A practitioner who receives a summons or information document request (IDR) from the IRS must respond to the compelled portion but should not voluntarily produce information beyond what is required.

The key tension for practitioners is this: Circular 230 requires cooperation with the IRS, but the practitioner also owes a duty of confidentiality to the client under applicable professional ethics rules (state bar rules for attorneys, AICPA standards for CPAs). These duties can create conflicts when the IRS demands broad production. The resolution typically requires involving qualified legal counsel, asserting applicable privileges (IRC 7525, attorney-client, work product), and following the client's instructions about what to produce voluntarily.

A practitioner who discloses return information received from the IRS (through a Form 8821 authorization or another IRC 6103 exception) to a third party not covered by the original authorization may also face IRC 7213 criminal liability, in addition to Circular 230 disciplinary consequences. The two regimes reinforce each other: the Circular 230 duty of confidentiality is broader (covering all client information, not just return information), while IRC 7213 criminal liability is narrower (requiring willfulness and covering only the specific category of "return information"). See our related guides on IRC 7525 federally authorized tax practitioner privilege and IRC 6501 audit statute of limitations for related practitioner obligations.

Practitioner Checklist: Disclosure Situations

Confirm a valid Form 2848 or Form 8821 is on file before disclosing any client tax information to a third party.
Verify that the authorization covers the specific type of return information, tax period, and designee for the disclosure at issue.
When receiving a summons or subpoena seeking client tax information, involve qualified legal counsel immediately and do not produce voluntarily before asserting applicable privileges.
Before re-disclosing return information received from the IRS to any third party, confirm that the third party is named and covered by the original IRC 6103(c) consent.
If you suspect your client's return information has been disclosed without authorization, document the circumstances and advise the client of their rights under IRC 7431.
When representing a client in a matter that has potential criminal dimensions, engage qualified criminal tax counsel before the matter escalates to a DOJ referral under IRC 6103(h).

11. IRC 6103 Disclosure Exceptions Reference Table

The following table summarizes the primary disclosure exceptions in IRC 6103. Each subsection has its own scope, limitations, and procedural requirements. Verify all current provisions at IRS.gov and in the current IRC text before relying on any exception.

Subsection	Disclosed To	Purpose	Consent Required	Form Used	Penalty for Violation
6103(c) Taxpayer Consent	Designated third party named by taxpayer	Any purpose authorized by the taxpayer in the consent	Yes (written)	Form 2848 or Form 8821	IRC 7213 (criminal); IRC 7431 (civil)
6103(d) State Tax Agencies	State revenue departments	State tax administration only	No	None (IRS-initiated per statute)	IRC 7213 (criminal); IRC 7431 (civil)
6103(e) Material Interest	Taxpayer, spouse on joint return, executor, partners, S-corp shareholders (1%+)	Access to own return information	No (statutory right)	Request per IRS procedures	IRC 7213 (criminal); IRC 7431 (civil)
6103(f) Congress	Committee of Congress with jurisdiction	Legislative oversight	No	Congressional request per statute	IRC 7213 (criminal); IRC 7431 (civil)
6103(g) President	President and certain White House staff	Narrowly specified grounds (verify at IRS.gov)	No	Written request per statute	IRC 7213 (criminal); IRC 7431 (civil)
6103(h) IRS and DOJ Tax Administration	IRS officers and employees; DOJ attorneys and investigators	Civil and criminal federal tax administration, including grand jury and prosecution	No	None (internal referral per statute)	IRC 7213 (criminal); IRC 7431 (civil)
6103(i) Federal Law Enforcement (Non-Tax)	Federal law enforcement agencies (specific felony investigations)	Non-tax federal felony investigation (court approval required)	No (court order required)	Ex parte district court application	IRC 7213 (criminal); IRC 7431 (civil)
6103(j) Statistical Use	Census Bureau	Statistical purposes; no individual identification	No	None (statutory)	IRC 7213 (criminal); IRC 7431 (civil)
6103(k) Tax Administration Specific Uses	Federal officers and employees; practitioners under Circular 230 proceedings; certain state agencies	Background checks, security clearances, Circular 230 misconduct proceedings, and specific tax administration uses	Varies by subsection	Varies by subsection	IRC 7213 (criminal); IRC 7431 (civil)
6103(l) Non-Tax Federal Programs	SSA, DOL, HHS, and other specified federal agencies	Social Security, Medicare, employment programs, and other enumerated federal program purposes (each subsection is separately authorized)	No	None (statutory per each subsection)	IRC 7213 (criminal); IRC 7431 (civil)
6103(m) State and Local Prison Officials	State and local correctional institutions	Locating inmates for federal tax collection purposes	No	None (statutory)	IRC 7213 (criminal); IRC 7431 (civil)
6103(n) IRS Contractors	Persons with contracts with the IRS for tax administration services	Performing contracted services for IRS tax administration	No (contract-based)	Contract with IRS per 6103(n)	IRC 7213 (criminal); IRC 7431 (civil)
6103(p) Procedural Safeguards (All Disclosures)	All agencies and persons receiving return information under any 6103 exception	Establishes confidentiality safeguards, access controls, annual reporting, and audit requirements for all recipients	No (compliance obligation)	None (IRS procedures and agreements)	IRC 7213 (criminal); loss of IRS information access

Verify all current provisions, limitations, and procedural requirements at IRS.gov and in the current text of the Internal Revenue Code before advising clients.

Questions About Your Tax Return Confidentiality Rights?

Americas Tax practitioners advise clients and professionals on IRS disclosure issues, IRC 6103 authorization requirements, and the appropriate response when return information may have been shared without proper authority. Contact us to discuss your situation.

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12. Frequently Asked Questions: IRC 6103 Tax Return Confidentiality

What is IRC 6103 and what does it protect?

IRC 6103 is the general confidentiality statute for federal tax information. It establishes that tax returns and return information are confidential and may not be disclosed by the IRS, or by officers or employees of the United States, except as specifically authorized by the Internal Revenue Code. The statute protects both the return itself and all "return information" as broadly defined in IRC 6103(b)(2), which includes virtually any information the IRS gathers about a taxpayer's tax liability from any source. Taxpayers may have civil remedies under IRC 7431 for unauthorized disclosure, and willful unauthorized disclosure by government personnel is a felony under IRC 7213. Verify current scope at IRS.gov.

What is "return information" and does it include audit workpapers?

Yes. The IRC 6103(b)(2) definition of "return information" is deliberately broad and includes any information a taxpayer provides to the IRS, any information the IRS gathers about the taxpayer's liability from any source (including third-party summonses, informants, and international exchanges), the fact that a return was or was not filed, the fact that an examination is underway, and the results of any audit. IRS audit workpapers, revenue agent reports, examination files, and even informal examiner notes are all return information. The definition is not limited to information the taxpayer submitted directly on a return. Verify current scope at IRS.gov and in the current IRC text.

How does a taxpayer authorize disclosure to a third party?

Under IRC 6103(c), the taxpayer must provide written consent. In practice this is done using Form 2848 (Power of Attorney, which authorizes representation before the IRS) or Form 8821 (Tax Information Authorization, which authorizes a designee to receive and inspect return information without representation authority). A verbal consent is not sufficient. The authorization must identify the specific return information covered, the tax periods, and the designated third party. The designated person is then authorized to receive the specified information from the IRS but may not re-disclose it to unauthorized parties. Verify current form requirements at IRS.gov.

What is the difference between Form 4506, Form 4506-T, and Form 4506-C?

Form 4506 requests an actual copy of a filed tax return (including all schedules); a fee applies and processing takes weeks. Form 4506-T requests a transcript of tax information (not the return itself); it is free and available in several types including the tax return transcript, tax account transcript, record of account, and wage and income transcript. Form 4506-C is used exclusively by mortgage lenders and financial institutions participating in the IRS's Income Verification Express Service (IVES) program for expedited transcript delivery; non-IVES participants should not use this form. Practitioners must select the correct form for the client's situation to avoid delays and rejections. Verify current requirements at IRS.gov.

When can the IRS share return information with other government agencies?

Only under a specific statutory exception in IRC 6103. There is no general authority for the IRS to share return information with non-tax-administration agencies. The primary exceptions are IRC 6103(h) (IRS and DOJ for tax administration, including criminal prosecution referrals), IRC 6103(l) (specific enumerated non-tax federal programs such as Social Security and Department of Labor employment programs), and IRC 6103(d) (state tax agencies for state tax administration). Each exception is separately authorized and narrowly scoped. Practitioners should direct clients with concerns to IRS Publication 1 and the specific IRC 6103 subsection applicable to the sharing arrangement in question. Verify all current inter-agency authorities at IRS.gov.

What are the criminal penalties for unauthorized disclosure under IRC 7213?

IRC 7213 makes willful unauthorized disclosure of return information a federal felony punishable by fines up to $5,000, imprisonment up to 5 years, or both, plus costs of prosecution. Federal employees convicted under IRC 7213 are mandatorily dismissed from office. The statute applies to IRS employees, federal contractors with access to return information under IRC 6103(n), state agency employees with access to federal information, and persons who receive return information through a valid IRC 6103(c) consent and then improperly re-disclose it. IRC 7213A covers unauthorized inspection (without re-disclosure) and is a misdemeanor punishable by up to 1 year imprisonment. Verify current penalty amounts at IRS.gov.

What civil damages are available under IRC 7431 for unauthorized disclosure?

Under IRC 7431, a taxpayer may sue the United States in federal district court for the greater of actual damages sustained or liquidated damages of $1,000 per act of unauthorized disclosure or inspection. The court may also award punitive damages for willful or grossly negligent unauthorized disclosure, plus attorney fees and costs if the taxpayer prevails. The action must generally be filed within 2 years of the date of discovery of the unauthorized disclosure (verify current limitations period at IRS.gov). IRC 7431 applies to both unauthorized disclosure and unauthorized inspection (IRC 7213A violations). Practitioners whose clients discover a potential unauthorized disclosure should document the incident and consult qualified legal counsel promptly.

Can the IRS share return information with state tax authorities?

Yes, under IRC 6103(d), the IRS may disclose return information to state tax agencies for state tax administration purposes. This includes notifying states of federal audit adjustments that may affect state tax liability -- a practically important point because a federal adjustment that changes federal taxable income typically also changes state taxable income, and the IRS routinely notifies state revenue departments. State agencies receiving federal return information under IRC 6103(d) must maintain the information under confidentiality protections at least as stringent as those applicable to IRS employees (per IRC 6103(p)), and their employees may be subject to IRC 7213 criminal liability for improper disclosure. Verify current IRC 6103(d) requirements and notification timelines at IRS.gov.

What are the practitioner's obligations under Circular 230 regarding confidential information?

Circular 230 (31 C.F.R. Part 10) imposes professional conduct obligations that are distinct from but parallel to IRC 6103. Practitioners owe a duty of confidentiality to clients regarding all client information, not just IRC 6103 "return information." Section 10.20 of Circular 230 requires practitioners to promptly produce records requested by the IRS, but this obligation does not override privilege claims or authorize production beyond what is compelled. Practitioners who improperly disclose return information received from the IRS through an authorized channel may face both Circular 230 disciplinary consequences and IRC 7213 criminal exposure, depending on the facts. Verify current Circular 230 requirements with the IRS Office of Professional Responsibility at IRS.gov.

How does IRC 6103 interact with the IRS summons power under IRC 7602?

IRC 7602 governs the IRS's authority to compel production of information from taxpayers and third parties. IRC 6103 governs what the IRS may do with the information it has obtained, including who it may share it with. When the IRS gathers information via summons, that information becomes return information subject to IRC 6103 confidentiality. The most significant overlap occurs in criminal tax cases: when the IRS's Criminal Investigation division refers a case to the DOJ Tax Division under IRC 6103(h), it may share all return information gathered during the investigation, including records obtained through summons, with DOJ prosecutors. This referral and the scope of information shared are not disclosed to the taxpayer at the time they occur. See our guide on IRC 7602 IRS summons power and third-party summons for the summons authority framework. Verify current interaction of IRC 6103 and 7602 at IRS.gov.

Does IRC 6103 protect information provided to the IRS by a third party rather than by the taxpayer?

Yes. IRC 6103(b)(2) explicitly defines "return information" to include information gathered by the IRS from any source with respect to a taxpayer's liability -- not only information the taxpayer submitted. W-2 and 1099 data reported by employers and payers, bank records obtained through summons, data provided by informants, and information gathered in audits of related parties are all "return information" subject to IRC 6103 confidentiality. The taxpayer cannot be deprived of IRC 6103 protection simply because the IRS gathered the information from a third party rather than from the taxpayer directly. Verify current scope of IRC 6103(b)(2) at IRS.gov and in the current IRC text.

Who qualifies as a person with a material interest under IRC 6103(e)?

IRC 6103(e) limits the "material interest" category to: the taxpayer; either spouse on a joint return (with respect to that joint return); the executor or administrator of a deceased taxpayer's estate; partners in a partnership (with respect to the partnership return); shareholders of an S corporation holding at least 1 percent of outstanding stock (with respect to the S corporation return); and certain other specifically enumerated persons. The category does not include general business associates, lenders, or persons with merely a financial relationship with the taxpayer. A person who does not fit one of the enumerated categories must obtain the taxpayer's written consent through Form 8821 or Form 2848 to receive return information. Verify the current enumerated categories at IRS.gov and in the current IRC text.

Can a practitioner be liable under IRC 7213 for disclosing return information received from the IRS?

Yes, in certain circumstances. IRC 7213 and 7213A apply not only to IRS employees but also to persons who receive return information through an authorized IRC 6103 channel and then improperly re-disclose it. A practitioner who receives a client's return information from the IRS pursuant to a valid Form 8821 and then discloses it to a third party not covered by the authorization may face misdemeanor (IRC 7213A) or felony (IRC 7213) exposure depending on the willfulness and nature of the re-disclosure. Practitioners operating under Kovel arrangements or on matters involving IRS-sourced information should confirm the limits of the original consent before sharing information with co-counsel or third parties. Verify full liability scope at IRS.gov and with qualified legal counsel.

What is IRC 6103(h) and how does it enable DOJ referrals in criminal tax cases?

IRC 6103(h) is the statutory authority permitting the IRS to share return information with IRS officers and employees, DOJ attorneys, and DOJ investigators who are personally and directly engaged in federal tax administration proceedings, including grand jury proceedings and criminal prosecutions. When IRS Criminal Investigation develops a case and refers it to the DOJ Tax Division for prosecution, it does so under IRC 6103(h), which permits sharing of detailed return information including examination files, bank records obtained by summons, and CI investigative reports, before any charges are filed and without notifying the taxpayer. Practitioners who identify criminal investigation indicators should involve criminal tax counsel immediately. See our guide on IRC 7602 IRS summons power and third-party summons for related criminal investigation issues. Verify current IRC 6103(h) referral procedures at IRS.gov.

What are the IRC 6103(p) procedural requirements for all receiving agencies?

IRC 6103(p) requires that every federal agency, state agency, and other entity receiving return information under any IRC 6103 exception maintain the information under confidentiality conditions not less stringent than those applicable to IRS employees. Specific requirements include: access controls, information security procedures, notification to the IRS of any unauthorized disclosure, annual reporting to the Joint Committee on Taxation regarding safeguards, and submission to IRS audits of the receiving agency's compliance. An agency that fails to comply with IRC 6103(p) may lose access to IRS return information, and its employees may face IRC 7213 criminal liability. For practitioners, IRC 6103(p) is the basis for confirming what safeguards a particular agency is required to maintain. Verify current IRC 6103(p) requirements at IRS.gov.

What is the role of IRC 6103(l) disclosures for non-tax government programs?

IRC 6103(l) is a series of specific, separately enacted exceptions that authorize the IRS to share return information with particular federal agencies for particular non-tax program purposes. Examples include disclosures to the Social Security Administration for Social Security and Medicare program administration, to the Department of Labor for employment program purposes, and to certain other agencies for specifically enumerated federal program uses. Each IRC 6103(l) subsection is narrow and program-specific; there is no general authority for sharing with agencies whose interest in tax data is not specifically enumerated in the Code. A proposed disclosure to a federal agency that cannot be traced to a specific IRC 6103(l) subsection (or another enumerated IRC 6103 exception) would be an unauthorized disclosure. Verify all current IRC 6103(l) authorized disclosures and applicable limitations at IRS.gov.

IRC 6103 Tax Return Confidentiality and Disclosure Exceptions: Practitioner Guide