Tax Information

Tax information is defined as any information supplied by the IRS, concerning a taxpayer’s identity, the nature, source, or amount of his/her earned income, unearned income (including interest or dividends), payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, over assessments or tax payments.

Safeguards

Counties shall establish the following safeguards in order to protect the confidentiality of, and to prevent the unauthorized disclosure of, tax information received from the IRS:

Establish and maintain a secure area or place in which IRS tax information shall be stored;
Restrict access to the tax information only to persons whose duties or responsibilities require access to this information;
Provide other such safeguards or controls as prescribed by IRS guidelines and necessary or appropriate to protect the confidentiality of tax information;
Report annually in a format prescribed by the CDSS the safeguard procedures utilized by the counties for ensuring that the confidentiality of tax information is being maintained;
The county shall destroy IRS source material upon the independent verifications of IRS tax information or upon completion of appropriate case action, whichever is earlier. Methods of destruction shall be those used for confidential material.

Penalties for Unauthorized Disclosure of Tax Information

The following are penalties for the unauthorized disclosure of tax information:

Franchise Tax Board (FTB)

It is a misdemeanor for the Franchise Tax Board or any member thereof, or any deputy, agent, clerk, or other officer or employee or other individual, who in the course of his or her employment or duty has or had access to returns, reports, or documents required under this part, to disclose or make known in any manner information as to the amount of income or any particulars set forth or disclosed therein.

Internal Revenue Service (IRS)

It shall be unlawful for any person willfully to disclose to any person, except as authorized in this title, any return or, return information. Any violation shall be a felony punishable by a fine in any amount not exceeding $5,000, or imprisonment of not more than 5 years, or both, together with the costs of prosecution.

Civil Damage