67-1-1704 - Disclosure for administrative purposes Tax collection.
67-1-1704. Disclosure for administrative purposes Tax collection.
(a) Returns and tax information shall, without written request, be open to inspection by or disclosure to officers and employees of the department whose official duties require such inspection or disclosure for tax administration purposes.
(b) (1) A return or tax information may be disclosed in a federal or state judicial or administrative proceeding pertaining to tax administration, but only if:
(A) The taxpayer is a party to such proceeding;
(B) The treatment of an item reflected on such return is directly related to the resolution of an issue in the proceedings; or
(C) Such return or tax information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding.
(2) Such return or tax information shall not be disclosed as provided in §§ 67-1-1705(a), 67-1-1707(a), and subsections (a) and (b) of this section, however, if the commissioner determines that such disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation.
(c) Returns and tax information may be disclosed to any person to the extent necessary in connection with the processing, storage, transmission, and reproduction of returns and tax information, and the programming, maintenance, repair, testing and procurement of equipment, for purposes of tax administration.
(d) Upon request in writing, returns and tax information may be disclosed to duly authorized officials of a unit of local government of this state for the purpose of ascertaining whether proper local taxes are being paid. For purposes of ascertaining whether proper local severance taxes are being paid pursuant to chapter 7, part 2, of this title, authorized officials of a unit of local government means the county mayor or a member of the county governing body. No unit of local government nor any official or employee of a unit of local government who receives returns or tax information under this subsection (d) shall disclose such information to any person other than the person to whom it relates, except as otherwise may be authorized by law. Any official or employee of a unit of local government who has or has had, at any time, access to any return or tax information under this subsection (d) shall be subject to all of the penalties and restrictions applicable to an officer or employee of the state under § 67-1-1709.
(e) Returns and tax information may be disclosed for the purposes of tax administration to either house of the general assembly, or to any committee or subcommittee of the general assembly, but only upon a lawfully executed subpoena being served on the commissioner who demands such returns or information.
(f) Returns and tax information shall be open to inspection by, and/or disclosure to, any person contracting for the collection of unpaid taxes under part 14 of this chapter. This disclosure is authorized only to the extent necessary for the collection of unpaid taxes by that person. Any person receiving returns and/or tax information under this section shall be subject to the confidentiality provisions, including penalties, provided by this part.
(g) Returns, tax information and tax administration information may, in the commissioner's discretion, be disclosed for the exclusive purpose of participating in the multistate tax commission joint audit program. Any person receiving returns, tax information or tax administration information under this subsection (g) shall be subject to the confidentiality provisions, including penalties, set out in this part; and the commissioner is authorized to take such actions as deemed necessary to ensure that any such persons receiving returns, tax information or tax administration information shall maintain the confidentiality provisions set out in this part.
[Acts 1977, ch. 152, § 1; T.C.A., § 67-134; Acts 1991, ch. 79, § 2; 2006, ch. 553, § 1; 2009, ch. 530, § 96.]