Code of Federal Regulations · Section
§ 301.6103(n)-2 — (n)-2 Disclosure Of Return Information In Connection With Written Contracts Among The Irs, Whistleblowers, And Legal Representatives Of Whistleblowers
26 C.F.R. § 301.6103(n)-2
(a) General rule. (1) Pursuant to the provisions of sections 6103(n) and 7623 of the Internal Revenue Code and subject to the conditions of this section, an officer or employee of the Treasury Department is authorized to disclose return information (as defined in section 6103(b)(2)) to a whistleblower and, if applicable, the legal representative of the whistleblower, to the extent necessary in connection with a written contract among the Internal Revenue Service (IRS), the whistleblower and, if applicable, the legal representative of the whistleblower, for services relating to the detection of violations of the internal revenue laws or related statutes.
(2) The IRS shall have the discretion to determine whether to enter into a written contract pursuant to section 7623 with the whistleblower and, if applicable, the legal representative of the whistleblower, for services described in paragraph (a)(1) of this section.
(b) Limitations. (1) Disclosure of return information in connection with a written contract for services described in paragraph (a)(1) of this section shall be made only to the extent the IRS deems it necessary in connection with the reasonable or proper performance of the contract. Disclosures may include, but are not limited to, disclosures to accomplish properly any purpose or activity of the nature described in section 6103(k)(6) and the regulations thereunder.
(2) If the IRS determines that the services of a whistleblower and, if applicable, the legal representative of the whistleblower, as described in paragraph (a)(1) of this section, can be performed reasonably or properly by disclosure of only parts or portions of return information, then only the parts or portions of the return information shall be disclosed.
(3) Upon written request by a whistleblower, or a legal representative of a whistleblower, with whom the IRS has entered into a written contract for services as described in paragraph (a)(1) of this section, the Director of the Whistleblower Office, or designee of the Director, may inform the whistleblower and, if applicable, the legal representative of the whistleblower, of the status of the whistleblower's claim for award under section 7623, including whether the claim is being evaluated for potential investigative action, or is pending due to an ongoing examination, appeal, collection action, or litigation. The information may be disclosed only if the IRS determines that the disclosure would not seriously impair Federal tax administration.
(4) Return information disclosed to a whistleblower and, if applicable, a legal representative of a whistleblower, under this section, shall not be further disclosed or otherwise used by the whistleblower or a legal representative of a whistleblower, except as expressly authorized in writing by the IRS.
(c) Penalties. Any whistleblower, or legal representative of a whistleblower, who receives return information under this section, is subject to the civil and criminal penalty provisions of sections 7431, 7213, and 7213A for the unauthorized inspection or disclosure of the return information.
(d) Safeguards. (1) Any whistleblower, or the legal representative of a whistleblower, who receives return information under this section, shall comply with all applicable conditions and requirements as the IRS may prescribe from time to time for the purposes of protecting the confidentiality of the return information and preventing any disclosure or inspection of the return information in a manner not authorized by this section (prescribed requirements).
(2) Any written contract for services as described in paragraph (a)(1) of this section shall provide that any whistleblower and, if applicable, the legal representative of a whistleblower, who has access to return information under this section, shall comply with the prescribed requirements.
(3) Any whistleblower, or the legal representative of a whistleblower, who may receive return information under this section, shall agree in writing, before any disclosure of return information is made, to permit an inspection of the whistleblower's or the legal representative's premises by the IRS relative to the maintenance of the return information disclosed under these regulations and, upon completion of services as described in the written contract with the IRS, to dispose of all return information by returning the return information, including any and all copies or notes made, to the IRS, or to the extent that it cannot be returned, by destroying the information in a manner consistent with prescribed requirements.
(4) If the IRS determines that any whistleblower, or the legal representative of a whistleblower, who has access to return information under this section, has failed to, or does not, satisfy the prescribed requirements, the IRS, using the procedures described in the regulations under section 6103(p)(7), may take any action it deems necessary to ensure that the prescribed requirements are or will be satisfied, including—
(i) Suspension of further disclosures of return information by the IRS to the whistleblower and, if applicable, the legal representative of the whistleblower, until the IRS determines that the conditions and requirements have been or will be satisfied; and
(ii) Suspension or termination of any duty or obligation arising under the contract with the IRS.
(e) Definitions. For purposes of this section—
(1) The term Treasury Department includes the IRS and the Office of the Chief Counsel for the IRS.
(2) The term whistleblower means an individual who provides information to the IRS regarding violations of the tax laws or related statutes and submits a claim for an award under section 7623 with respect to the information.
(3) The term legal representative means any individual who is a member in good standing in the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia, and who has a written power of attorney executed by the whistleblower.
(f) Effective/applicability date. This section is applicable on March 15, 2011.
Authorizing Statute
-
Confidentiality and disclosure of returns and return information26 U.S.C. § 6103
-
Restrictions applicable to deficiencies; petition to Tax Court26 U.S.C. § 6213
-
Signing of returns and other documents26 U.S.C. § 6061
-
Assessment, collection, and payment26 U.S.C. § 6232
-
Period of limitations on making adjustments26 U.S.C. § 6235
-
Validity and priority against certain persons26 U.S.C. § 6323
-
Definitions26 U.S.C. § 7701
-
Partner’s return must be consistent with partnership return26 U.S.C. § 6222
-
Alternative to payment of imputed underpayment by partnership26 U.S.C. § 6226
-
Notice of qualification as executor or receiver26 U.S.C. § 6036
-
Partners bound by actions of partnership26 U.S.C. § 6223
-
Abatements26 U.S.C. § 6404
-
Commissioner of Internal Revenue; other officials26 U.S.C. § 7803
-
Extension of time for filing returns26 U.S.C. § 6081
-
Treaty-based return positions26 U.S.C. § 6114
-
Timely mailing treated as timely filing and paying26 U.S.C. § 7502
-
Interest and penalties26 U.S.C. § 6233
-
Certified professional employer organizations26 U.S.C. § 7705
-
Accelerated cost recovery system26 U.S.C. § 168
-
General requirement of return, statement, or list26 U.S.C. § 6011
-
Disclosure of reportable transactions26 U.S.C. § 6111
-
Rules and regulations26 U.S.C. § 7805
-
Persons required to make returns of income26 U.S.C. § 6012
-
Return of S corporation26 U.S.C. § 6037
-
Reimbursement to State and local law enforcement agencies26 U.S.C. § 7624
-
Determination at partnership level26 U.S.C. § 6221
-
Partnership adjustment by Secretary26 U.S.C. § 6225
-
Authority to release levy and return property26 U.S.C. § 6343
-
Disclosure or use of information by preparers of returns26 U.S.C. § 7216
-
Departmental regulations5 U.S.C. § 301
-
Tax imposed26 U.S.C. § 1
-
Notice of proceedings and adjustment26 U.S.C. § 6231
-
Payment of tax by commercially acceptable means26 U.S.C. § 6311
-
Sale of seized property26 U.S.C. § 6335
-
Procedural requirements26 U.S.C. § 6751
-
Low-income housing credit26 U.S.C. § 42
-
Special rules26 U.S.C. § 1474
-
Returns by exempt organizations26 U.S.C. § 6033
-
Definitions and special rules26 U.S.C. § 6241
-
Administrative appeal of liens26 U.S.C. § 6326
-
Expenses of detection of underpayments and fraud, etc.26 U.S.C. § 7623
-
Information concerning resident status26 U.S.C. § 6039E
-
Identifying numbers26 U.S.C. § 6109
-
Administrative adjustment request by partnership26 U.S.C. § 6227
-
Authority to make credits or refunds26 U.S.C. § 6402
-
Judicial review of partnership adjustment26 U.S.C. § 6234
-
Failure to file notice of redetermination of foreign tax26 U.S.C. § 6689
-
Income from discharge of indebtedness26 U.S.C. § 108