Chief Counsel advises that section 6103 does not bar disclosure of information a person learned only after leaving employment

Plain-English summary

This is informal Chief Counsel advice, sent by email, about the confidentiality rules for tax return information under Internal Revenue Code § 6103. Section 6103(a) bars former employees from disclosing confidential return information they obtained in the course of their employment. Here, because the information at issue was obtained after the person's employment ended, it was not obtained in connection with that employment, so § 6103(a) does not prohibit the person from disclosing it. The attorney noted two limits. First, if the person had been made a contractor under § 6103(n), then the person would be barred from disclosing return information received during the contract. Second, a separate, binding confidentiality agreement that the person signed could independently bar disclosure. Absent one of those, the attorney was unaware of any other statute that would bar the disclosure. This matters to agencies and individuals sorting out whether someone who once had access to IRS data can share information they picked up later.

Ruling snapshot

• Question: Does § 6103 bar a former employee from disclosing return information that was obtained after the employment ended?
• Outcome: advice given (no, unless the person was a § 6103(n) contractor or signed a separate binding confidentiality agreement)
• Key authorities: IRC §§ 6103(a), 6103(n); Treas. Reg. §§ 301.6103(n)-1(c), 301.6103(n)-2(c)

Full text (IRS public release)

ID: CCA_2021070715020143
UILC: 6103.01-00, 6103.01-03

Number: 202150015
Release Date: 12/17/2021
From: ---------------------------
Sent: Wednesday, July 7, 2021 3:02:01 PM
To: --------------------
Cc: --------------------
Bcc:
Subject: RE: -------------------------------------------------

Hi ---------,

I hope you are well! I wanted to follow up with an email after our previous phone call. Thank you for reaching out for assistance with this question about whether -----------------
---------------------------------------. To briefly summarize, the -----------------------------------------
----------------------------------------------------------------------------------------------. As stated during our call, the ---------------------------------------------------------so long as there is not a separate confidentiality agreement that he signed.

As you know, I.R.C. § 6103(a) prohibits former employees from disclosing confidential return information obtained in the course of their employment. Because the ----------------
--------------------------------------------------------------------------------after this employment ceased, the information was not obtained in connection with his employment. If the ------
-----------was made a contractor pursuant to section 6103(n), then the ---------- would be prohibited from disclosing any return information received during the course of the agreement. See Treas. Reg. §§ 301.103(n)-1(c); 301.6103(n)-2(c). Unless there is a separate binding confidentiality clause, ----------------------------------------------------------------
-------------------------. We are unaware of any other statute that would bar --------------.

Please let me know if you have any further questions.

Best,
------
--------------------------
Legal Admin. Specialist, CC:PA:07
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