IRS limits disclosure of separated spouses' financial information in a joint offer

Plain-English summary

The Office of Chief Counsel addressed whether the IRS could disclose financial information from a joint offer in compromise to a former or separated spouse who lived in a different household. The advice states that IRC § 6103(e)(8) permits disclosure, upon written request, of the general nature of collection activities involving the other former spouse. It says the provision does not authorize disclosure of personal information about the other spouse's employment, income, or assets. The advice also notes that the Internal Revenue Manual leaves discussion of financial information and submission of an amended offer to the taxpayer's discretion.

Ruling snapshot

• Question: What financial information may the IRS disclose to a former or separated spouse involved in a joint offer in compromise?
• Outcome: Advice given.
• Key authorities: IRC § 6103(e)(8); IRM 5.8.5.22.

Full text (IRS public release)

ID: CCA_2013090413581030
UILC: 6103.05-14

Number: 201404010
Release Date: 1/24/2014
From:
Sent: Wednesday, September 04, 2013 1:58:11 PM
To:
Cc:
Bcc:
Subject: RE: Clarification on Joint offer filed by 2 spouses that live separately

Hello----------

The Centralized Offer in Compromise unit has asked below to what extent they may disclose financial information provided by one taxpayer on a joint offer to the other taxpayer who does not live in the same household. Your assumption that the Service cannot disclosure current finances is correct. Upon written request, I.R.C. 6103(e)(8) permits the Service to disclose the general nature of collection activities, including whether (1) the IRS has attempted to collect the deficiency from the other former spouse; (2) the amount, if any, collected from the other former spouse; (3) the current collection status (e.g., Taxpayer Delinquent Account (“TDA”), installment agreement, suspended); and (4) if suspended, the reason (e.g., unable to locate, hardship). I.R.C. 6103(8)(e) does not, however, authorize disclosure of personal information about a former/separated spouse, including any information about the other spouse's employment, income, or assets. The IRM provides that it is at the taxpayer’s discretion whether to discuss their financial information and whether an amended offer should be submitted to include both RCPs. IRM 5.8.5.22.

Please let me know if you have any further questions.

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