Liability-related IRS materials are return information

Plain-English summary

Chief Counsel advised that the definition of return information is broader than information appearing on a tax return. It includes material the IRS gathered, collected, or created while determining or collecting an actual or possible tax liability. Information retains that status even if the IRS did not ultimately use it and even if it does not identify the taxpayer by itself. In particular, anything received in response to an information document request is return information because the IRS issues those requests to gather information during liability determinations or collections.

Ruling snapshot

• Question: Does information gathered during an IRS liability determination remain return information when it is unused or does not identify the taxpayer?
• Outcome: Advice given that the material remains return information.
• Key authorities: IRC § 6103.

Full text (IRS public release)

ID: CCA_2015052608013307 [Third Party Communication:

UILC: 6103.02-02 Date of Communication: Month DD, YYYY]

Number: 201526012
Release Date: 6/26/2015
From:
Sent: Tuesday, May 26, 2015 8:01:34 AM
To:
Cc:
Bcc:
Subject: RE: Release of Legal Advice: POSTU-102836-15

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The definition of return information is extremely broad and encompasses anything the IRS gathered, collected, or created as part of a determination of liability, or possible liability, under the Code. The fact that a taxpayer cannot be identified by the information does not change its status as return information. If we gathered information as part of a determination of liability, it is return information, regardless of whether we used it or if it identifies the taxpayer. Return information is much broader than information appearing on a return. All of the information you describe would be return information as it appears as if we would have gathered it as part of a determination of the taxpayer’s liability under the Code. For sure anything received in response to an IDR is return information. IDRs are issued by the IRS to gather information during a determination or collection of liability. For more information about return information, please see the Disclosure Manual posted on P&A’s website. It is also available as Pub. 4639 on the IRS’s website.

Please let me know if you have any questions.

Thanks,
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