IRS could not first disclose tax-debt information solely for criminal sentencing

Plain-English summary

A U.S. Attorney's Office wanted information about a taxpayer's unpaid taxes for sentencing in a federal drug-trafficking case. Chief Counsel advised that the IRS could not disclose it. The case did not involve tax administration, so IRC § 6103(h) did not apply. Section 6103(i) can permit tax information to be used in a nontax criminal matter when prosecutors first obtain it through an authorized mechanism, commonly an ex parte court order, and then disclose it during the proceeding under the statute's safeguards. Here, prosecutors had not obtained the information under such an order or disclosed it before conviction. The statute did not allow an initial disclosure solely for sentencing.

Ruling snapshot

• Question: May the IRS disclose a taxpayer's outstanding tax debts for the first time solely to support sentencing in a nontax criminal case?
• Outcome: Advice given, no disclosure was permitted
• Key authorities: IRC § 6103(h), (i)(1), (i)(4)(A)-(B); IRM 11.3.28.7(1)

Full text (IRS public release)

ID: CCA_2025082208120000 [Third Party Communication:

UILC: 6103.00-00, 6103.08-01, Date of Communication: Month DD, YYYY]

6103.12-00
Number: 202547018
Release Date: 11/21/2025
From: --------------------
Sent: Friday, May 2, 2025 01:37:00 PM
To: ---------------------
Cc: ------------------
Bcc:
Subject: RE: Request for help-6103(h)

Good afternoon,

Thanks for your inquiry. We understand that the U.S. Attorney's Office has requested
information about the taxpayer's outstanding tax debts to support sentencing in a non-tax
criminal case involving drug trafficking.

Under IRC section 6103, returns and return information are confidential and may not be
disclosed unless a statutory exception applies. Because this is not a tax administration matter,
section 6103(h) does not apply.

We also do not believe that section 6103(i), which governs disclosures for administration of
federal laws not relating to tax administration, provides a viable path for disclosure in this
situation. Section 6103(i)(1), the most frequently relied upon disclosure authority in aid of nontax
federal investigations, permits disclosure of returns and return information to federal officers and
employees personally and directly engaged in non-tax criminal investigations upon the grant of
an ex parte court order. Ordinarily, when return information is obtained through an ex parte
order under section 6103(i)(1) and thereafter permissibly redisclosed during the criminal
proceeding, there is little doubt that it can be further utilized during the sentencing phase. See
IRM 11.3.28.7(1) (confirming that return information obtained via section 6103(i)(1) may be used
at sentencing so long as the requirements of section 6103(i)(4) are satisfied).

In this case, the return information now being sought was not obtained by prosecutors through a
section 6103(i)(1) order, nor was it disclosed during the proceeding consistent with the
requirements of section 6103(i)(4)(A)-(B). Those provisions limit disclosures in non-tax criminal
proceedings to return information obtained through one of several specifically authorized
mechanisms, including section 6103(i)(1). We’re not aware of any instance in which return
information was disclosed at sentencing when it had not been previously obtained through
section 6103(i)(1) and thereafter disclosed in the proceeding prior to conviction.

Therefore, no return or return information should be disclosed in this case. Absent prior lawful
disclosure under §6103(i)(1) and disclosure of the information during the proceeding consistent
with section 6103(i)(4)(A)-(B), the statute does not permit initial disclosures solely for sentencing
purpose in a non-tax criminal matter.

2

Please feel free to reach out if you have further questions or if the facts change.

Best,

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