CCA 200911029: An IRS expert may describe the engagement without revealing return information

Plain-English summary

An outside expert hired by the IRS needed to disclose conflicts of interest to another federal agency. Section 6103(n) permits the IRS to give confidential tax information to the expert, but the expert may disclose it further only with written IRS authorization and only as needed for the engagement. The expert could identify that they worked for the IRS and describe the issue generally when reporting conflicts. That description could not reveal confidential return information.

Ruling snapshot

• Question: May an outside IRS expert identify work on a taxpayer's case when disclosing conflicts to another federal agency?
• Outcome: Advice given: the expert may identify the IRS engagement and describe the issue generally, but may not disclose confidential return information.
• Key authorities: IRC § 6103(n); Treas. Reg. § 301.6103(n)-1(a)(2)(ii) and (e)(2).

Full text (IRS public release)

ID: CCA_2009020614155431 Number: 200911029
Release Date: 3/13/2009
Office: --------------
UILC: 6103.11-00, 6103.14-00

From: --------------------
Sent: Friday, February 06, 2009 2:16:03 PM
To: --------------------
Cc:
Subject: FW: 6103 limitations on hired expert

You called with a question about 6103 limitations on hired experts. The expert also has to disclose any conflicts of interest to another federal agency and wanted to know whether they are barred from identifying their work for the Service with respect to a particular taxpayer's case.

Under section 6103(n), we can disclose confidential tax information to an outside expert. Section 301.6103(n)-1(a)(2)(ii) provides that when an expert receives confidential tax information, he can only further disclose the returns or return information when authorized in writing by the IRS to the extent necessary to carry out the purposes for which his services were engaged. We are authorized to share confidential tax information with the expert for purposes of tax administration; they enter into a written contract with us and agree to safeguard the information. See Treas. Reg. 301.6103(n)-1(e)(2).

If the expert needs to disclose any conflicts to another federal agency, they should be able to identify that they are working as an expert for the Service and describe the issue generally unless that description could be construed as disclosing confidential return information.