Taxpayer may consent to sharing innocent-spouse records with state

Plain-English summary

Chief Counsel found no evidence of a proper written request from the head of the California Franchise Tax Board under section 6103(d)(2). It advised instead that the taxpayer could consent under section 6103(c) to disclosure of her return information to the state agency. The consent may be a letter or other written document, but it must be signed, dated, and specific about the information to be released. The advice suggests identifying the taxpayer's Form 8857, supporting documents, and IRS determination letter concerning innocent-spouse relief.

Ruling snapshot

• Question: How may the IRS share the taxpayer's innocent-spouse records with the California Franchise Tax Board?
• Outcome: Advice given: obtain the taxpayer's specific written consent under section 6103(c).
• Key authorities: IRC §§ 6103(c) and 6103(d)(2); Treas. Reg. § 301.6103(c)-1(c)(1).

Full text (IRS public release)

ID: CCA_2015031113544354 [Third Party Communication:

UILC: 6103.03-00 Date of Communication: Month DD, YYYY]

Number: 201515027
Release Date: 4/10/2015
From:
Sent: Wednesday, March 11, 2015 1:54:43 PM
To:
Cc:
Bcc:
Subject: sharing return information with the California Franchise Tax Board

I don’t see this as a section 6103(d)(2) issue, as I see nothing which indicates that the head of the
California Franchise Tax Board made a written request for the IRS to share information about this
taxpayer’s case (the attachment merely says a request was made to the IRS but doesn’t say who made it
or provide any details to determine whether it was a proper request). Rather, I see this as falling
squarely within section 6103(c) – the taxpayer can consent to have her return information shared with
the California Franchise Tax Board. I consulted with a section 6103 expert in Counsel, who concurs.

The request can be in a letter or other written document and it must be signed and dated by the
taxpayer. In accordance with Treas. Reg. section 301.6103(c)-1(c)(1), the request should include
sufficient details to describe what information she wants to be disclosed – presumably a copy of Form
8857 and any supporting documents she filed with the Form 8857, and a copy of the determination
letter she received from the IRS regarding her claim for relief. I don’t know that there would really be
anything else in the IRS’s file regarding her claim for innocent spouse relief that would be relevant to the
California Franchise Tax Board.

Please let me know if you want to discuss further.

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