Contents

• [1.3] 32.1 General

• [1.3] 32.2 Definitions

• [1.3] 32.3 Authority for Disclosure

• [1.3] 32.4 Need and Use

• [1.3] 32.5 Basic Agreements

• [1.3] 32.6 Implementing Agreements
  • [1.3] 32.6.1 Content of Implementing Agreements

• [1.3] 32.7 Memorandums of Understanding

• [1.3] 32.8 Responsibilities and Procedures

• [1.3] 32.9 Need and Use Reviews

• [1.3] 32.10 Authorized Disclosures
  • [1.3] 32.10.1 Continuing Disclosures

• [1.3] 32.11 Release of Tax Data in Magnetic Media Format

• [1.3] 32.12 Release of Tax Information Relating to State Tax Employees for Conduct Investigations or Employee Checks

• [1.3] 32.13 Disclosure to Agencies Which Have Not Entered Into Agreements on Coordination of Tax Administration

• [1.3] 32.14 State Agency Requirements
  • [1.3] 32.14.1 State Law Requirements

• [1.3] 32.15 Disclosure of Tax Return Preparer Information

• [1.3] 32.16 Disclosure of Records Regarding Taxes on Gasoline and Lubricating Oil

• [1.3] 32.17 Restrictions on Disclosure of Returns and Return Information

• [1.3] 32.18 Unauthorized Disclosure

• [1.3] 32.19 Use of Returns and Return Information in State Judicial or Administrative Proceedings

• [1.3] 32.20 Letters to Taxpayers

• [1.3] 32.21 Special Statistical Studies, Compilations and Other Services

• [1.3] 32.22 Charges for Copies, Magnetic Tape Extracts, etc.

• [1.3] 32.23 Combined Federa/State Information Return Reporting

• [1.3] 32.24 Disclosure of Returns and Return Information to State Audit Agencies

• [1.3] 32.25 Availability and Use of Death Information
  • Exhibit [1.3] 32-1 Agreement on Coordination of Tax Administration
  • Exhibit [1.3] 32-2 Addendum to Agreement on Coordination of Tax Administration
  • Exhibit [1.3] 32-3 Documentation of State Data

Exhibit [1.3] 32-2  (08/19/98)
Addendum to Agreement on Coordination of Tax Administration

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Section 3.1 and 3.2 of the Agreement on Coordination of Tax Administration signed by the Commissioner of the Internal Revenue on   _____ , 19 _____ , and the     (title of agency official)   , of the   (name of agency)   , on  _____ , 19 _____ , are hereby supplemented as follows:
	3.1	In addition to those States taxes listed in the original Agreement, the Agency is also responsible for the administration of State laws imposed on           (specify)           ____________________________________________________________ ____________________________________________________________ Federal returns and return information (whether originals, paper copy, photocopy, microfilm, magnetic tape or any other form) received pursuant to this agreement will be used for the purpose of, and only to the extent necessary in, State tax administration.
	3.2	In addition to the disclosure authorization in the original Agreement, this addendum constitutes the requisite authorization pursuant to section 6103(d) of the Code for IRS to disclose to, and permit inspection by, an Agency Representative of Federal returns and return information relating to the taxes imposed by chapter  _____  of the Code.
APPROVED:
_____			_____
(signature)			Commissioner of Internal Revenue
_____
(title of agency official)
Signed at  _____			Signed at Washington, DC, this
this  _____  day of  _____ , 19  _____ .			_____  day of  _____ , 19 _____ .

Exhibit [1.3] 32-3  (08/19/98)
Documentation of State Data

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1.	State:		2. Date:
3.	Responsible State Agency:
4.	Name of File, Record or Source:
5.	Description of the Record's Content:
6.	Storage Medium:
7.	Approximate Number of Cases on Record:
8.	Is the following information on the record:		Yes    No
	a.	Social Security Number
	b.	Employer Identification Number
	c.	Name (Individual)
	d.	Name (Business)
	e.	Name (Doing Business As)
	f.	Address (Residence)
	g.	Address (Business)
9.	Is this file, record or source available to the IRS?
	a.	If yes, describe procedures for requesting the data:
	b.	If no, explain reason(s):
10.	Comments Regarding Usefulness of This Data to IRS:
11.	Information To Complete This Data Sheet Was Provided By:
	a.	Name
	b.	Title
	c.	Phone No.
12	Person to contact for further information (if different from above).
	a.	Name
	b.	Title
	c.	Phone No.
Explanation and Instructions for Completing the State Data Identification Sheet
The "State Data Identification Sheet" which follows is designed to secure only the essential information necessary to conduct a preliminary assessment of the utility of a given state source for tax compliance purposes. The questionnaire is a major element in the overall procedures drafted to identify, evaluate and utilize State information with compliance potential. The purpose is to document information about the nature and content of the State file but not to acquire copies of the actual data.
The following instructions explain the items on the data sheet. Answers would be continued on the back of the data sheet if additional space were needed.
Item 1:		Provide the name of the State in question.
Item 2:		Enter the date the data sheet was completed.
Item 3:		Record the full name of the State agency responsible for maintaining the file, record or source.
Item 4:		Provide the official name of the file, record or source. If no formal name exists, supply an informal name that sufficiently identifies the type of record, file or source in question.
Item 5:		Describe the content of the record, file or source, including:
		a. references to the kinds of entities on the file;
		b. the circumstances which cause an entity to be included on the record;
		c. the age of the record information;
		d. when the data are updated;
		e. if the data are updated, how often; and
		f. any other details which help to precisely identify the makeup of the state source.
		The answer to this question is crucial in assessing the potential utility of a given State record, therefore, it is better to provide too much detail, than too little. The followinig paragraph is offered as a model answer.
		Example: This register contains a list of all sole-proprietors, partnerships and corporations licensed to do business in the State. State law (Section XX of State Code) requires every business within its jurisdiction to obtain a license before operating a for profit enterprise. The license expires after two years and must be renewed. New license issuances are recorded on the register (and obsolete record purged) on a quarterly basis. Businesses with less than $5,000 gross profit a year are exempt from the provisions and are not listed on the register.
Item 6:		Provide a description of the physical means by which the information is retained (i.e., storage media). For example, whether the state data are on microfilm, magnetic tape, small index cards, etc. Also, if possible, include the computer manufacturer and machine type when the information is stored on automated equipment (e.g., IBM 370-168, etc.).
Item 7:		Enter the estimated number of records on the State file. Be sure to properly identify what exactly your estimate is counting (e.g., 1,000 corporations, 5,000 individual permits, 250 property transfers, etc.).
Item 8:		Check the appropriate column for each yes-no question. If the answer is unknown, write "UNK" next to that question.
Item 9:		Provide information on the availability of the State data to the IRS.
Item 10:		This question is intended to give the respondent (usually a State official) an opportunity to provide his/her evaluation of the use of this State file for IRS compliance programs. If the respondent cannot provide an assessment, "no comment" should be entered. However, if the State official is aware of certain aspects of a file that render it of little use for compliance purposes (e.g., the State requires a particular type of registration but doesn't enforce the provisions, and most entities in the State do not register), the respondent's observations about the file in question would be extremely helpful.
Item 11:		Enter the name, job title and phone number of the data sheet respondent.
		Note: Include any additional comment the respondent may have on the back of the data sheet. Label such information "Additional Comments" .