IRS advice on taxpayer consent and JCT disclosure

Plain-English summary

Chief Counsel advice considers whether submitting a closing agreement to the Joint Committee on Taxation before an examination is complete could disclose return information improperly. Because the Service was unsure whether the audit would produce a refund large enough to require Joint Committee review, the submission could potentially violate section 6103. The advice states that the disclosure would be permitted if the taxpayer consents under section 6103(c). It also notes that recipients of return information under that consent provision are not subject to the restrictions in section 6103(a).

Ruling snapshot

• Question: Whether a closing agreement may be submitted to the Joint Committee before an examination is complete.
• Outcome: Advice given, with taxpayer consent under IRC § 6103(c).
• Key authorities: IRC § 6103; Rev. Rul. 2004-53.

Full text (IRS public release)

ID: CCA_2012052311110603 Number: 201235012
Release Date: 8/31/2012
Office: --------------
UILC: 6103.03-00

From: --------------------
Sent: Wednesday, May 23, 2012 11:11:23 AM
To: ------------------------
Cc: ----------------------
Subject: RE: 6103 - JCT Issue

Because the Service is unsure whether the audit will definitely result in a refund over $2 million, and therefore require JCT review, the submission of the closing agreement to JCT before the completion of the Exam potentially violates section 6103. If the taxpayer consents, pursuant to section 6103(c), then the disclosure will not violate section 6103. Recipients of return information pursuant to section 6103(c) are not subject to the disclosure restrictions contained in section 6103(a). See Rev. Rul. 2004-53.

I hope this addresses the taxpayer’s concern. Please contact me if you have any questions.

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