IRS employees may show collection documents to an outside notary

Plain-English summary

Chief Counsel considered whether an IRS employee may use a licensed outside notary when an IRS employee notary is unavailable. Documents such as deeds from administrative or judicial property sales can contain return information, including the taxpayer's name, a property description, and the purchaser's name. Section 6103 generally protects that information, but section 6103(k)(6) permits disclosures connected with official collection duties. The advice concludes that an employee may present such a document to an outside notary when notarization is needed to properly complete the employee's official tax collection work.

Ruling snapshot

• Question: May an IRS employee disclose return information on a collection document to a non-IRS notary for notarization?
• Outcome: advice given (the disclosure is authorized when needed to accomplish the employee's official duties)
• Key authorities: IRC §§ 6103(a), (b)(8), and (k)(6), and 6338(b); Treas. Reg. § 301.6103(k)(6)-1(a)(1)

Full text (IRS public release)

ID: CCA_2019120210232233
UILC: 6103.08-04

Number: 202019004
Release Date: 5/8/2020
From:
Sent: Monday, December 02, 2019 10:23:22 AM
To:
Cc:
Bcc:
Subject: Use of outside notary services

Good morning, ------

This email is being sent as a follow-up to our previous conversations regarding your
inquiry on the use of outside notary services.

As part of their official duties, certain IRS employees need to notarize documents that
have been prepared to accomplish collection and other tax administration activity. One
example where this need arises is in cases where a piece of real property has been
sold administratively by the IRS or by a judicial sale conducted by a Property Appraisal
Liquidation Specialist (PALS), and a deed to the property is being prepared in
accordance with established procedures. See Internal Revenue Manual 5.10.6.9, Deed
to Real Property, “IRC 6338(b) provides that whenever real property is not redeemed
within the 180-day period, the purchaser, or his/her assigns, will be issued a deed upon
surrender of the Certificate of Sale.” See also, Internal Revenue Manual 5.10.8.10,
Deed Issuance, “Upon confirmation of the sale by the Court, Advisory will prepare and
issue a deed in accordance with the laws of the state in which the real property is
situated.” Information contained on these documents would include such items as a
taxpayer’s name, a description of the property, and the name of the purchaser of the
property.

We understand that while the established practice in these situations is to use IRS
employees who are licensed notaries to notarize these documents wherever possible,
we also understand that there may be times when the need for a notary arises and an
IRS employee notary is not available. You have inquired about the use of an outside
notary, a licensed notary who is not an IRS employee, in such situations.

Returns and return information are confidential and may be disclosed only as authorized
by law. I.R.C. § 6103(a). “Disclosure” is defined as making known to any person in any
manner, tax returns or return information. I.R.C. § 6103(b)(8). Because return
information is defined broadly, it includes information contained on deeds and other
documents that an IRS employee would present to an outside notary, such as a
taxpayer’s name, a description of the property, and a purchaser’s name. Internal
Revenue Code Section 6103(k)(6) authorizes disclosure of return information in

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connection with official duties relating to collection activity. Treas. Reg. 301.6103(k)(6)-
1(a)(1) authorizes disclosure of return information “to accomplish properly any activity
connected with” an employee’s official duties.

Where an IRS employee in completing his or her official duties, presents a document to
an outside notary containing return information for purposes of having the document
notarized to accomplish properly activity connected with those official duties such as the
sale of real property in the situations described above, IRC § 6103(k)(6) and the
accompanying Regulations authorize such a disclosure of return information.

Please let me know if you have any questions or wish to discuss further. Thank you.

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