The IRS, like other government agencies, supplies the Department of Justice with a referral letter and agency files authorizing prosecution or defense. Referral letters and agency files that the IRS provides to the Department of Justice for the Department's use in representing the United States in federal tax litigation are confidential. 26 U.S.C. § 6103 and 26 C.F.R. § 301.6103(h)(2) define return information and how it must be handled and disclosed. See Tax Information Security Guidelines for Federal, State, and Local Agencies (IRS Pub. 1075, rev. 11-16), available at https://www.irs.gov/pub/irs-pdf/p1075.pdf. Should questions arise as to the definition and/or handling of information provided by the IRS, the Tax Division should be consulted.

A taxpayer may bring a damages action against the United States for a federal employee’s negligent or intentional disclosure of return information in violation of section 6103. See 26 U.S.C. § 7431. See also JM 6-5.470 (discussing procedures in suits for wrongful disclosure brought under 26 U.S.C. § 7431). A federal employee who willfully discloses return information in violation of section 6103 may be charged with a felony and, upon conviction, dismissed from office or discharged from employment. See 26 U.S.C. § 7213(a)(1).

Questions about what is encompassed within the scope of “return information” or how to interpret the prohibitions of Section 6103 may be directed to the Chief or Assistant Chiefs of the Civil Trial Section, Southern Region.

[update June 2020]