Ezel / IRS Rulings / 201411022
Chief Counsel Advice 201411022 Released March 14, 2014 Advice

Third-party return information remains protected when copied into another exam file

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This page covers one taxpayer's ruling from 2014, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2014
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that the item and transactional relationship tests generally restrict disclosure of third-party return information. Information or documents obtained from another revenue agent's examination file remain that other taxpayer's return information even when copied into a local examination file. The advice recommended labeling or segregating those materials so they can be identified and handled appropriately. Disclosure decisions under the relevant provisions depend on the facts and circumstances, including whether information from the other examination directly affects or directly relates to an issue in the local examination.

Ruling snapshot

  • Question: How should third-party return information obtained from another examination file be handled in a local examination?
  • Outcome: Advice given, identify and protect the information, with disclosure decisions based on the specific facts
  • Key authorities: IRC § 6103; item and transactional relationship tests

Full text (IRS public release)

ID: CCA_2013111509461517
UILC: 6103.08-04

Number: 201411022
Release Date: 3/14/2014
From:
Sent: Friday, November 15, 2013 9:46:16 AM
To:
Cc:
Bcc:
Subject: RE: Disclosure Question

Hi --

I was referring to the item and transactional relationship tests generally, and the
restrictions they place on the disclosure of third party return information. This is all
addressed quite well in the DRG pages 3-7 to 3-17. Since information and documents
the local RA obtains from the other RA’s exam file is return information of the other RA’s
taxpayer, and copying it into the local exam file does not change this, I recommend that
all such information be labeled or segregated in the local file so that local the RA can
always identify the third party return information and handle it appropriately. Disclosure
decisions under these provisions are fact-and-circumstances based, and depend on the
specifics of what is at issue in the local exam and what information (if any) from the
other exam “directly affects” or “directly relates to” resolving any of those issues.

Hope this helps. If you want to discuss any specific aspect of the tests, let me
know. I’m generally available this afternoon and next week.

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