Heir must show an affected material interest to obtain estate or gift tax information

Plain-English summary

Chief Counsel advised that estate return information is governed by section 6103(e)(1)(E), while a deceased donor’s gift tax information is governed by section 6103(e)(3). Beyond an estate’s administrator, executor, or trustee, potential requesters include heirs at law, next of kin, will beneficiaries, and, for a decedent’s return rather than an estate return, recipients of the decedent’s property. Such a requester must show a material interest that will be affected by the requested information. That interest is important and often financial, but it does not have to be financial. The IRS may still withhold information if disclosure would seriously impair federal tax administration.

Ruling snapshot

• Question: When may an heir or other interested person obtain estate, gift tax, or decedent return information?
• Outcome: Advice given.
• Key authorities: IRC §§ 6103(e)(1)(E), 6103(e)(3); IRM 11.3.2.4.7, 11.3.2.4.11.

Full text (IRS public release)

ID: CCA_2016051215141707
UILC: 6103.05-05, 6103.05-08

Number: 201621014
Release Date: 5/20/2016
From:
Sent: Thursday, May 12, 2016 3:14:17 PM
To:
Cc:
Bcc:
Subject: RE: Disclosure to an heir

Hi -----------,

The estate stuff would be covered by 6103(e)(1)(E) and the gift tax (now that the donor is dead) would be covered by 6103(e)(3). Under 6103(e)(1)(E) and (3), the only people other than the administrator, executor, or trustee of the estate who can request the return information are heirs at law, next of kin, beneficiaries under the will and, only in the case of decedents (not the estate), donees of property. For all these categories, in order to be entitled to the return information, the person must establish that they have a material interest that will be affected by the information requested. A material interest is an important information that is often, but not required to be, financial in nature. We can withhold things if disclosure would seriously impair federal tax administration.

I would look at IRM 11.3.2.4.7 and 11.3.2.4.11 and the attached.

I’m on a long conference call right now but I can answer any further questions tomorrow.

Thanks,
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