Code Section 6103

Code Section	Effective Date	Name of Act	Name of Provision	10yr Revenue Estimate ($millions)
6103	1/2/2013	The American Taxpayer Relief Act of 2012	Improve and make permanent the provision authorizing the Internal Revenue Service to disclose certain return and return information to certain prison officials	12
6103	12/31/2010	The Homebuyer Assistance and Improvement Act of 2010 ¹¹¹²	Disclosure of prisoner return information to State prisons	6
6103	6/25/2010	Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 ¹⁰⁵⁵	Authority to Disclose Return Information Concerning Outstanding Tax Debts for Purposes of Enhancing Medicare Program Integrity	425
6103	3/23/2010	Patient Protection and Affordable Care Act	Disclosures to Carry Out Eligibility Requirements for Certain Programs	*See note below
6103	3/23/2010	Patient Protection and Affordable Care Act	Disclosures to Carry Out the Reduction of Medicare Part D Subsidies for High Income Beneficiaries	*See note below
6103	2/4/2009	Children’s Health Insurance Program Reauthorization Act of 2009	Use of Tax Information in Tobacco Assessments	2

* Note on Revenue Estimates

See table 3 of CBO estimate letter to Speaker Pelosi on March 20, 2010, http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/113xx/doc11379/amendreconprop.pdf

Improve and make permanent the provision authorizing the Internal Revenue Service to disclose certain return and return information to certain prison officials

Explanation of Provision

The provision makes permanent the authority of the IRS to disclose tax information relating to prisoner misconduct to the Federal Bureau of Prisons and State prison officials. In addition, the provision (1) authorizes the disclosure of actual returns (not just return information), (2) allows the disclosure to be made directly to officers and employees of the prison agency rather than through the head of such agency, (3) allows redisclosure of return information to contractors that operate prisons, and (4) clarifies the authority for the disclosure to, and use by, legal representatives in proceedings.

Disclosure of prisoner return information to State prisons

Explanation of Provision

The provision extends the disclosure authority applicable to the Federal Bureau of Prisons to State prisons. The disclosure authority terminates December 31, 2011.

Authority to Disclose Return Information Concerning Outstanding Tax Debts for Purposes of Enhancing Medicare Program Integrity

Explanation of Provision

Upon written request from the Secretary of Health and Human Services, the IRS is permitted to disclose to officers and employees of the Department of Health and Human Services the following information with respect to a taxpayer who has applied to enroll, or reenroll, as a provider of services or supplier under the Medicare program under title XVIII of the Social Security Act:

Taxpayer identity information with respect to such person (i.e. the name of the person with respect to whom a return is filed, that person’s mailing address, and taxpayer identifying number),
The amount of the seriously delinquent tax debt owed by that taxpayer, and
The taxable year to which the seriously delinquent debt relates.

For purposes of the provision, the term ‘‘seriously delinquent tax debt’’ means an outstanding debt under Title 26 for which a notice of lien has been filed. Such term does not include a debt that is being paid in a timely manner pursuant to an installment agreement (under section 6159) or offer in compromise (under section 7122). Nor does it include a debt for which a collection due process hearing (under section 6330) or innocent spouse relief (under subsections (a), (b) or (f) of section 6015) is requested or pending.

The information disclosed under the provision may be used by officers and employees of the Department of Health and Human Services only for the purposes of, and to the extent necessary in, establishing the taxpayer’s eligibility for enrollment or reenrollment in the Medicare program, or in any administrative or judicial proceeding relating to, or arising from, a denial of such enrollment, or in determining the level of enhanced oversight to be applied with respect to such taxpayer pursuant to section 1866(j)(3) of the Social Security Act.

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Disclosures to Carry Out Eligibility Requirements for Certain Programs

Explanation of Provision

Individuals will submit income information to an exchange as part of an application process in order to claim the cost-sharing reduction and the tax credit on an advance basis. The Department of HHS serves as the centralized verification agency for information submitted by individuals to the exchanges with respect to the reduction and the tax credit to the extent provided on an advance basis. The IRS is permitted to substantiate the accuracy of income information that has been provided to HHS for eligibility determination.

Specifically, upon written request of the Secretary of HHS, the IRS is permitted to disclose the following return information of any taxpayer whose income is relevant in determining the amount of the tax credit or cost-sharing reduction, or eligibility for participation in the specified State health subsidy programs (i.e., a State Medicaid program under title XIX of the Social Security Act, a State’s children’s health insurance program under title XXI of such Act, or a basic health program under section 2228 of such Act): (1) taxpayer identity; (2) the filing status of such taxpayer; (3) the modified adjusted gross income (as defined in new sec. 36B of the Code) of such taxpayer, the taxpayer’s spouse and of any dependants who are required to file a tax return; (4) such other information as is prescribed by Treasury regulation as might indicate whether such taxpayer is eligible for the credit or subsidy (and the amount thereof); and (5) the taxable year with respect to which the preceding information relates, or if applicable, the fact that such information is not available. HHS is permitted to disclose to an exchange or its contractors, or to the State agency administering the health subsidy programs referenced above (and their contractors) any inconsistency between the information submitted and IRS records.

The disclosed return information may be used only for the purposes of, and only to the extent necessary in, establishing eligibility for participation in the exchange, verifying the appropriate amount of the tax credit, and cost-sharing subsidy, or eligibility for the specified State health subsidy programs.

Recipients of the confidential return information are subject to the safeguard protections and civil and criminal penalties for unauthorized disclosure and inspection. The IRS is required to make an accounting for all disclosures.

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Disclosures to Carry Out the Reduction of Medicare Part D Subsidies for High Income Beneficiaries

Explanation of Provision

Upon written request from the Commissioner of Social Security, the IRS may disclose the following limited return information of a taxpayer whose Medicare Part D premium subsidy, according to the records of the Secretary, may be subject to adjustment:

Taxpayer identity information with respect to such taxpayer;
The filing status of the taxpayer;
The adjusted gross income of such taxpayer;
The amounts excluded from such taxpayer’s gross income under sections 135 and 911 to the extent such information is available;
The interest received or accrued during the taxable year which is exempt from the tax imposed by chapter 1 to the extent such information is available;
The amounts excluded from such taxpayer’s gross income by sections 931 and 933 to the extent such information is available;
Such other information relating to the liability of the taxpayer as is prescribed by the Secretary by regulation as might indicate that the amount of the Part D premium of the taxpayer may be subject to an adjustment and the amount of such adjustment; and
The taxable year with respect to which the preceding information relates.

This return information may be used by officers, employees, and contractors of the Social Security Administration only for the purposes of, and to the extent necessary in, establishing the appropriate amount of any Medicare Part D premium subsidy adjustment.

For purposes of both the Medicare Part B premium subsidy adjustment and the Medicare Part D premium subsidy adjustment, the provision provides that the Social Security Administration may redisclose only taxpayer identity and the amount of premium subsidy adjustment to officers and employees and contractors of the Centers for Medicare and Medicaid Services, and officers and employees Retirement Board. This redisclosure is permitted only to the extent necessary for the collection of the premium subsidy amount from the taxpayers under the jurisdiction of the respective agencies.

Further, the Social Security Administration may redisclose the return information received under this provision to officers and employees of the Department of HHS to the extent necessary to resolve administrative appeals of the Part B and Part D subsidy adjustments and to officers and employees of the Department of Justice to the extent necessary for use in judicial proceedings related to establishing and collecting the appropriate amount of any Medicare Part B or Medicare Part D premium subsidy adjustments.

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Use of Tax Information in Tobacco Assessments

Explanation of Provision

The provision provides that returns and return information provided to a Federal agency under section 6103(o) may be used in an action or proceeding, or in the preparation for an action or proceeding, brought under section 625 the Fair and Equitable Tobacco Reform Act of 2004 for any unpaid assessments or penalties arising under such Act.

1055- H.R. 3962. The bill originated as the Affordable Health Care for America Act and passed the House on November 7, 2009. The Senate passed the bill with an amendment substituting the text of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 by unanimous consent on June 18, 2010. The House agreed to the Senate amendment on June 24, 2010. The President signed the Act on June 25, 2010.

1112- H.R. 5623. The bill passed the House on the suspension calendar on June 29, 2010. The Senate passed the bill by unanimous consent on June 30, 2010. The President signed the bill on July 2, 2010.

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