IRS explained disclosure rules for partnership returns and audits

Plain-English summary

The IRS explained that a partner’s request for a complete return, including all Schedule K-1 forms, for reasons unrelated to tax administration is governed by section 6103(e). It stated that disclosures during audits, appeals consideration, or litigation are instead governed by section 6103(h)(4).

Ruling snapshot

• Question: Which disclosure provisions apply to requests for partnership returns and to tax-administration proceedings?
• Outcome: Advice given
• Key authorities: IRC §§ 6103(e) and 6103(h)(4).

Full text (IRS public release)

ID: CCA_2009020616082635 Number: 201025073
Release Date: 6/25/2010
Office:
UILC: 6103.05-00

From: ------------------
Sent: Friday, February 06, 2009 4:08:28 PM
To: --------------------------------------------------
Cc: -------------------
Subject: RE: New I.R.C. § 6103(e)(10)

The context of the legislation was the concern that for nontax administration reasons, one partner was requesting the full return, with all K-1s, from the Disclosure Unit. That access is governed by 6103(e).

In the tax administration context, when we are doing audits, or are under appeals consideration, or in litigation, such disclosures are performed under 6103(h)(4).

Hence, we issued the Notice the way we did.

It has been in practice for a while now and I am unaware of any internal or external stakeholder concerns being expressed.

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