Time: Sun Aug 31 12:00:33 1997 by primenet.com (8.8.5/8.8.5) with ESMTP id LAA01109; Sun, 31 Aug 1997 11:53:45 -0700 (MST) by usr02.primenet.com (8.8.5/8.8.5) with SMTP id LAA20276; Sun, 31 Aug 1997 11:51:48 -0700 (MST) Date: Sun, 31 Aug 1997 11:51:48 -0700 To: (Recipient list suppressed) From: Paul Andrew Mitchell [address in tool bar] Subject: SLS: IRS Agreement with State of Tennessee (fwd) <snip> > >AGREEMENT ON COORDINATION OF TAX ADMINISTRATION > > > >SECTION 1. Introduction > >1.1 This agreement provides the basis for coordination of Federal and >State tax administration. The parties to this agreement will explore >and adopt mutually acceptable techniques and modes of exchange most >beneficial to improved tax administration with the least possible >inter-ruption of their respective operating routines and with strict >adherence to laws, regulations, and rules for protecting the >confidentiality of exchanged information. > >1.2 This agreement may be supplemented by an implementing >agreement, prescribing the nature, quantity and mechanics for the >continuous exchange of tax information, including criteria and tolerance >for selection of tax returns and return information as well as other >cooperative activities. If an implementing agreement has been >approved, subsections preceded by asterisks (*) will have >corresponding provisions in the implementing agreement which should >be consulted for more detailed information about specific working >arrangements and operational procedures for the exchange of tax >information authorized by this agreement. All provisions contained in >implementing agreements must be consistent with the terms and >conditions in this agreement. In any situation where a conflict arises >between the provisions of this agreement and the implementing >agreement, the terms of this agreement will govern. > > >SECTION 2. Definitions > >For purposes of this agreement the following definitions apply: >2.1 Agency. The term "Agency" means Tennessee Department of >Revenue > >2.2 IRS. The term "IRS" means the Internal Revenue Service, U.S. >Department of >the Treasury. > >2.3 State Audit Agency. The term "State Audit Agency" is defined in >the same manner as provided in section 6103 (d)(2)(B) of the Code. >State Audit Agency means Comptroller of the Treasury - State Audit >Div. > >2.4 State. The term "State" means the State of Tennessee > >*2.5 Agency Representative. The term "Agency Representative" >means an Agency officer or employee designated in writing by the head >of the Agency, to the District Director(s) at Nashville, Tennessee and >the Service Center Director at Memphis, Tennessee as an individual >who is to inspect or receive Federal returns or Federal return >information on behalf of the Agency as provided by section 6103 (d) >of the Code, but only so long as the duties and employment of such >officer or employee require access to Federal returns and Federal >return information for purposes of State tax administration. > >*2.6 IRS Representative. The term "IRS Representative" means an >officer or employee of the IRS who has been designated in writing to >the head of the Agency by the District Director(s) at Nashville, >Tennessee or the Service Center Director at Memphis, Tennessee >as an individual who is to inspect or receive State returns or State >return Information on behalf of IRS, but only so long as the duties and >employment of such officer or employee require access to State returns >and return information for the purpose of Federal tax administration. > >2.7 Federal Return. The term "Federal Return" is defined in the same >manner as provided in section 6103(b)(1) of the Code. > >2.8 Federal Return Information. The term "Federal Return Information" >is defined in the same manner as provided in section 6103(b)(2) of the >Code. However, "Federal Return Information" does not include that >information in the hands of the State which ft obtained by means wholly >from sources independent from the IRS. > >2.9 State Return. The term "State Return" means any tax or information >return, declaration of estimated tax, or claim for refund required by or > >provided for or permitted under the provisions of the internal revenue >laws, or related statutes, of the State, and any amendment or supplement > >thereto, including supporting schedules, attachments or lists which are >supplemental to or part of, the return so filed. > >2.10 State Return Information. The term "State Return Information" >means a taxpayer's identity, the nature, source, or amount of his/her >income, payments, receipts, deductions. exemptions, credits, assets, >liabilities, net worth, tax liability, tax withheld, deficiencies, >over-assessments, or tax payments, whether the taxpayers State return >was, is being, or will be examined or subject to other investigation or >processing, or any other data received by, recorded by, prepared by, >furnished to, or collected by the Agency with respect to a State return >or with respect to the determination of the existence, or possible >existence, of liability (or the amount thereof) of any person under the >internal revenue laws, or related statutes, of the State, for any tax, >penalty, Interest, fine, forfeiture. or other imposition, or offense. > > >2.11 Inspection. The term "Inspection means any examination of a >return or return information. > >2.12 Disclosure. The term "Disclosure" means the making known to >any person in any manner whatever a return or return information. > >2.13 State Tax Administration. The term "State Tax Administration" >(a) means > >(i) the administration, management, conduct, direction, and supervision >of the execution and application Of the revenue laws, or related >statutes of the State and > >(ii) the development and formulation of State tax policy relating to >existing or proposed internal revenue laws, or related statutes, of the >State and > >(b) includes assessment, collection, enforcement, litigation, and >statistical gathering functions under such laws or statutes. > >2.14 Code. The term "Code" means the Internal Revenue Code of >1954, as amended. > >SECTION 3. Disclosure of Federal Returns and Federal Return >Information > >3.1 Pursuant to the laws of the State, the Agency is charged with the >responsibility for the ad, ministration of State taxes imposed on sales >and use; motor vehicle registration; gasoline and petroleum products; >corporate franchise, excise, and gross receipts; estate, gift, and >inheritances; income from stocks and bonds; beer; alcoholic beverages; >cigarette and tobacco products; business privilege; coal severance; real > >estate transfer and indebtedness recordation; litigation; soft drink >mfg.'s; public utilities; theatres, motion picture and vaudeville shows; > >mixing bars, vending machines, diesel fuel, special motor fuels and >non-commercial fuel. Federal returns and Federal return information >(whether originals, paper copy, photocopy, microfilm, magnetic media >or any other form) received from IRS will be used for the purpose of, >and only to the extent necessary in, State tax administration. > >3.2 This agreement constitutes the requisite authorization pur-suant to >section 6103(d)(1) of the Code for IRS to disclose to, and permit >inspection by, an Agency Representative Of Federal returns and >Federal return information relating to taxes imposed by chapter(s) >1, 2, 6, 11, 12, 21, 23, 24, 31, 32, 44, 51, and 52 and Subchapter D >of Chapter 36 of the Code. > >*3.3 Upon the occurrence of any change in employment, duties or other >relevant matters affecting an Agency Representative's right of access to > >Federal returns and Federal return information or status as Agency >Representative, the head of the Agency shall promptly advise in writing > >the District Director(s) at Nashville, Tennessee >and the Service Center Director at Memphis, Tennessee >that such individual is no longer an Agency Representative. > >3.4 An Agency Representative to whom a Federal return or Federal >return information has been disclosed. may thereafter disclose such >return or return information: > >(a) to another employee of the Agency for the purpose of and only to the > >extent necessary in the administration of the State tax laws for which >the Agency is responsible; > >(b) to a person described in section 6103(n) of the Code or to any >officer or employee of such person. solely for the purpose of State tax >administration and in a manner consistent with applicable regulations, >published rules or procedures, or written communications; > >(e) to a legal representative of the Agency personally and directly >engaged in, and solely for use in, preparation far a civil or criminal >proceeding (or investigation which may result ill a proceeding) before a > >State administrative body, grand jury, or court in a matter involving >State tax admin-istration, if the returns and return information satisfy > >one or more of the criteria established in section 6103(h) (2)(A), (B) >or (C). > >(d) to an officer or employee of the State audit agency for the purpose >of and only to the extent necessary in making an audit of the State tax >agency. > >3.5 A Federal return or Federal return information may be disclosed in a > >judicial or administrative proceeding pertaining to State tax >administration, but only if the same criteria established in section >6103(h)(4)(A), (B), or (C) are met. > >3.6 Notwithstanding any other provision of this section, IRS will not >disclose a Federal return or Federal return information under this >section if such disclosure would identify a confidential informant or >seriously impair a Federal civil or criminal tax in-vestigation. The >Agency agrees that neither it nor its legal representatives will make >any further use or disclosure of a Federal return or Federal return >information disclosed to an Agency Representa-tive by IRS if IRS >notifies the head of the Agency in writing that such further use or >disclosure would identify a confidential informant or seriously impair a > >Federal civil or criminal tax investigation. The Agency further agrees >that prior to the disclosure of any Federal return or Federal return >information in a State judicial proceeding or to any party other than >the taxpayer or his/her designee in a State administrative proceeding as > >provided by paragraph 3.5 of this agreement, the head or legal >representative of the Agency will notify in writing the Service Center >or District Director, from whom the return or return information was >received, of the intention to make such disclosure. No officer, >employee or legal representative shall so disclose a Federal return or >Federal return Information in such State judicial or administrative >proceeding if the Service Center or District Director or other IRS >official, within 30 days following receipt of such written notice, >informs the head or legal representa-tive of the Agency that such >disclosure would identify a confidential informant or seriously impair a > >Federal civil or criminal tax investi-gation. > >3.7 Additionally. the Agency agrees that it will notify the IRS when, >during an audit of the Agency by the State Audit Agency Federal returns >and Federal return information are disclosed to the State Audit Agency >and such information is made part of the State Audit Agency's >workpapers. > >SECTION 4. Disclosure of State Returns and Return Information > >4.1 This agreement constitutes the requisite authorization for the >Agency to disclose to, and permit inspection by, IRS Representatives of >State returns and State return information for the purpose or, and only >to the extent necessary in the administration of the internal revenue >laws, or related statutes, of the United States. Any State returns and >State return information so disclosed to, or inspected by, an IRS >Representative become, in the hands of IRS, "taxpayer return >information" as defined by section 6103(b)(3) of the Code and may be >redisclosed by IRS only to such persons, for such purposes, and under >such conditions as may be prescribed by the Code. > >4.2 Nothing in this agreement shall be construed as authority for the >Agency to disclose State returns and State return information where such > >disclosure would be contrary to State law. > >*4.3 Upon the occurrence of any change in employment duties, or other >relevant matters affecting an IRS representative s right of access to >State returns and State return information or status as an IRS >Representative, the District Director(s) at Nashville, TN >and the Service Center Director at Memphis, Tennessee >shall promptly advise the Agency in writing that such individual is no >longer an IRS Representative. > >SECTION 5. Other Cooperative Activities > >*5.1 Subject to the restrictions and other provisions of this agreement > >and the availability of enforcement resources, the Agency and IRS will >develop cooperative return selection and examination programs with the >objective of avoiding unnecessary duplication of Federal and State audit > >coverage. > >*5.2 Information other than Federal or State returns and return >information, which the Agency and IRS may deem to be relevant or >useful to the administration of State and Federal tax laws, may be >exchanged pursuant to arrangements made by the Agency and IRS. > >*5.3 In addition to the exchange of tax and other information, >the Agency and IRS will, to the extent feasible, extend to each other >assistance in other tax administration matters. This may include such >activities as taxpayer assistance, stocking tax forms for the public, >training of personnel, special statistical studies and compilations of >data, development and improvement of tax administration systems and >procedures, and such other activities as may improve tax administration. > >SECTION 6. Safeguards and Other Requirements > >6.1 As an express condition for the inspection and disclosure of >Federal returns and Federal return information the Agency agrees -to >comply with the safeguards and requirements prescribed by section >6103(p)(4) of the Code and any implementation of such safeguards and >requirements as may be provided by regulations and published >procedures including: > >(a) furnishing an annual report to the IRS describing the procedures >established and utilized by the agency far ensuring the confidentiality >of such returns and return information; > >(b) permitting IRS to review the extent to which the Agency is >complying with the requirements of this paragraph; and > >(c) informing in writing all Agency Representatives and other persons to > >or by whom disclosure or inspection of Federal returns or Federal return > >information is authorized of the criminal penalties and civil liability >provided by sections 7213 and 7217 of the Code for a disclosure of >such returns and return information which is unauthorized by the Code. > >6.2 To the extent consistent with Federal law IRS will accord State >returns and State return information confidentiality safeguards >comparable to those required of the Agency pursuant to this agreement. > >6.3 Processing of Federal returns and Federal return information >received by the Agency from IRS in the form of microfilms, >photo-impressions. magnetic media, or other format (including >reformatting or reproduction, or conversion to magnetic media, punch >cards, or hard copy printout) and transmission and storage of such >Federal returns Or Federal return information by or on behalf of the >Agency may be performed by either Agency owned and/or operated >computer facilities, or State shared facilities or by any other person >described in section 6103(n) d the Code. In those cases where such >facilities used by the State Agency are shared with other State agencies > >or operated by any other person described by section 6103(n) of the >Code, the Agency will ensure the confidentiality of the Federal returns >and Federal return information provided to such shared facility or >person. >As part of this responsi-bility the terms of any contract or agreement >between the Agency and a shared computer facility Or other person to >whom Federal return or Federal return information is or may be >disclosed for a purpose de-scribed in this subsection, will provide, >or will be amended to provide, that such person, and officers and >employees of the person, will comply with the applicable safeguard >conditions contained in regulations, published rules or procedures, >or written communications. > > >6.4 Because some taxpayers may be unaware that Agency tax officials >are authorized under Federal law to obtain Federal returns and Federal >return information for State tax administration purposes, the Agency >will publicize, in a manner satisfactory to IRS, that such returns or >return information were obtained pursuant to specific authority granted >by the Code. Similar publicity will be provided by IRS, If requested by > >the Agency, for State tax information furnished IRS pursuant to State >law. > >SECTION 7. Limitations > >7.1 Pursuant to the provisions of section 6103(p)(2) of the Code, >and of State law, if any, IRS and the Agency may charge each >other a reasonable fee for furnishing returns and return information >under the terms of this agreement. IRS and the Agency may agree >not to charge each other for the costs of routine reproduction of >returns and return information mutually exchanged. > >7.2 Under no circumstances will the Agency permit any Federal return >or Federal return Information to be inspected by, or disclosed to an >individual who is the Chief Executive Officer of the State or any person > >other than one described in Section 3 of this agreement. > >7.3 Notwithstanding any other provision of this agreement, IRS will not >disclose or make known in any manner whatever to any person >described in Section 3 of this agreement -- > >(a) any original, copy, abstract of any return, payment, or registration > >made pursuant to Chapter 35 of the Code (relating to taxes on >wagering); > > > >(b) any record required for making any such return, payment, or >registration made or required pursuant to Chapter 35 which IRS is >permitted by the taxpayer to examine or which is produced pursuant to >section 7502 of the Code (relating to the examination of books and >witnesses); > >(c) any information obtained by the exploitation of any such return, >payment, registration, or record made or required pursuant to Chapter >35. > >7.4 Notwithstanding any other provision of this agreement, IRS will not > >disclose or make known in any manner to any person described in >Section 3 of this agreement information which was obtained pursuant >to a tax convention between the United States and a foreign >government. > >SECTION 8. Officials to Contact for Obtaining Information > >8.1 Requests by the Agency for Federal returns or Federal return >information should be made to the officials named in the implementing >agreement or to the officials below if an implementing agreement has not > >been executed. > >(a) Requests by the Agency for Federal return information in magnetic >media mode should be made to the District Director at P.O. Box 1107, >Nashville, TN 37202 >who will be responsible for coordinating the requests with the National >Office. > >(b) Requests for physical inspection or copying of Federal returns, or >requests for audit abstracts and reports pertaining to such returns, >showing addresses within >the State should be made to the Director, Internal Revenue >Service Center, P.O. Box 30309 Airport Mail Facility >Memphis Tennessee, 38130 Attn: Taxpayer Assistance Section >who will be responsible for making the proper arrangements >for inspection or copying. > >(c) Requests by the head of the Agency for Federal returns of taxpayers >or Federal return information relating to taxpayers showing addresses >outside the State should be made to the District Director at P.O. Box >1107, Nashville, Tennessee 37202 > >8.2 Requests by authorized officers and employees of the IRS far >inspection or copying of State returns and State return information >should be made to the officials named in the implementing agreement >supplementing this agreement, or to the Data Security Coordinator (this >was crossed through and "Fed-State Disclosure Officer" >is hand written above it), Tennessee Department of Revenue, >P.O. Box 2565, Nashville, Tennessee 37219 >if an implementing agreement has not been executed. > >SECTION 9. Termination or Modification of Agreement > >9.1 The provisions Of the agreement are subject to provisions of the >Code, implementing regulations, published procedures, and to the >provisions of State statutes and regulations. This agreement may be >terminated or modified at the discretion of IRS or the Agency due to >changes In Federal or State statutes and regulations or whenever In the >administration of Federal or state laws that action seems appropriate. > >9.2 Any unauthorized use or disclosure of Federal returns or Federal >return information furnished pursuant to this agreement or inadequate >procedures for safeguarding the confidentiality of such returns and >return information, also constitutes grounds for termination of this >agreement and the exchange of information thereunder, subject to the >rights of administrative appeal as provided by regulations pre-scribed >by section 6103(p)(7) of the Code. > >9.3 Notwithstanding any other provision of this agreement, no Federal >return or Federal return information shall be disclosed after December >31, 1978, by IRS to any person described in Section 3 of this >agreement if the requirements of section 6103(p)(8) of the Code >are not met. > > >APPROVED: > >Martha Brown Olsen Signed, but not able to read >(signature) (Commissioner of Internal >Revenue) > >Commissioner of Revenue >(Title of Agency Official) > >Signed at Nashville, Tenn. Signed at Washington, D.C. this >this 23 day of October, 1981 2d day of Feb. , 1982. > > > >Here's the response from the Commissioner of the Tennessee >Department of Revenue regarding my FOIA request for the >Agreement on Coordination of Tax Administration and the >Implementing Agreement to the Agreement on Coordination of >Tax Administration between the Tennessee Department of Revenue >and the Internal Revenue Service. > >Regards, >Brooks > >Response as follows: > >Ruth Johnson >Commissioner > > >July 25, 1997 > > >Brooks Martin >XXXXXXXXXXX >XXXXXXXXXXX > >Re: Document Request >Dear Mr. Martin: > >This is in response to your request made on July 23, 1997, for copies >of the Agreement on Coordination of Tax Administration and the >Implementing Agreement to the Agreement on Coordination of Tax >Administration Between the Tennessee Department of Revenue and >the Internal Revenue Service. During our meeting on that date, you >were presented with a full copy of the Agreement and a redacted >copy of the Implementing Agreement. > >It is the position of the Department that we will not release an >unredacted copy of the Implementing Agreement. The Department's >position is based on the terms of the Agreement, the designation of this > >information as for "Official Use Only" and subject to the protection >of law enforcement material, as well as federal statutes, including >5 U.S.C. 552(b)(2)-(3), -(7), 26 U.S.C. 6103(b)(2), and >26 C.F.R. 601.701(b). > > >Sincerely, > > > >Ruth F. Johnson > >RFJ:CRK > > > > > > >=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= >Unsub info - send e-mail to majordomo@majordomo.pobox.com, with >"unsubscribe liberty-and-justice" in the body (not the subject) >Liberty-and-Justice list-owner is Mike Goldman <whig@pobox.com> > > ======================================================================== Paul Andrew Mitchell : Counselor at Law, federal witness B.A., Political Science, UCLA; M.S., Public Administration, U.C. Irvine tel: (520) 320-1514: machine; fax: (520) 320-1256: 24-hour/day-night email: [address in tool bar] : using Eudora Pro 3.0.3 on 586 CPU website: http://www.supremelaw.com : visit the Supreme Law Library now ship to: c/o 2509 N. Campbell, #1776 : this is free speech, at its best Tucson, Arizona state : state zone, not the federal zone Postal Zone 85719/tdc : USPS delays first class w/o this As agents of the Most High, we came here to establish justice. We shall not leave, until our mission is accomplished and justice reigns eternal. ======================================================================== [This text formatted on-screen in Courier 11, non-proportional spacing.]
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