Section 213.053, F.S. (Confidentiality and Information Sharing), provides that all information contained in returns, reports, accounts, or declarations received by the Department are confidential, except for official purposes. This section provides ...

 

DEPARTMENT OF REVENUE

RULE NOS.:RULE TITLES:
12-22.001Scope of Rules
12-22.002Definitions
12-22.003Confidentiality of Tax Information
12-22.004Access to Tax Information
12-22.005Disclosure Procedures
PURPOSE AND EFFECT: Section 213.053, F.S. (Confidentiality and Information Sharing), provides that all information contained in returns, reports, accounts, or declarations received by the Department are confidential, except for official purposes. This section provides when confidential information may be made available to specified agencies for use in the performance of their official duties. In addition, federal tax information obtained by the Department from the Internal Revenue Service is held confidential pursuant to federal law and regulation.
The purpose of the proposed changes to Rule Chapter 12-22, F.A.C. (Confidentiality and Disclosure of Tax Information), is to repeal those rules that are redundant of Section 213.053, F.S., and to update those rules providing how to request information that may be released by the Department.
SUMMARY: The proposed repeal of Rule 12-22.001, F.A.C. (Scope of Information), Rule 12-22.003, F.A.C. (Confidentiality of Tax Information), and Rule 12-22.004, F.A.C. (Access to Tax Information), removes unnecessary rules redundant of the statutory provisions regarding the confidentiality of information received by the Department.
The proposed amendments to Rule 12-22.002, F.A.C. (Definitions): (1) update the definition of “return” to reflect the definition provided in Section 213.755(2)(a), F.S.; and (2) remove definitions of terms rendered unnecessary by the proposed repeal of Rules 12-22.003 and 12-22.004, F.A.C.
The proposed amendments to Rule 12-22.005, F.A.C. (Disclosure Procedures): (1) clarify that a Power of Attorney and Declaration of Representative (Form DR-835) must be executed by the taxpayer and the taxpayer’s representative for the Department to release tax information to the representative; (2) remove information redundant of Rule 12-6.0015, F.A.C., on how to obtain a copy of Form DR-835; (3) provide that Form DR-841, Request for Copy of Tax Return, may be utilized to request copies of tax returns and how to obtain the form from the Department; (4) provide how government agencies and officials may request tax information from the Department; (5) provide how to request information from the Department involving the administration of a bankruptcy estate; (6) provide where in the Department subpoenas for disclosure of reports of large currency transactions and criminal and RICO Act subpoenas are to be served; and (7) update the addresses contained in the rule.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: 1) no requirement for the Statement of Economic Regulatory Costs (SERC) was triggered under Section 120.541(1), F.S.; and 2) based on past experiences with providing how to request tax information from the Department and rules of this nature, the adverse impact or regulatory cost, if any, do not exceed nor would exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 213.06(1), 213.22(4) FS.
LAW IMPLEMENTED: 24.108(5), 125.0104, 125.0108, 192.105, 193.074, 195.027, 195.084, 196.101, 201.022, 206.27, 211.125, 211.33, 212.0305(3)(d), 212.10(1), 212.084, 212.12, 212.13, 213.03, 213.05, 213.053, 213.0535, 213.054, 212.133, 213.21, 213.22, 213.27, 213.28, 213.30, 213.755(2)(a), 220.242, 336.025(2)(a), 370.07(3), 403.718, 403.7185, 403.7195, 538.11, 624.5092, 896.102 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: January 29, 2013, 1:30 p.m.
PLACE: 2450 Shumard Oak Boulevard, Building One, Room 1220, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Tammy Miller at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Janet Young, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone]

THE FULL TEXT OF THE PROPOSED RULE IS:

12-22.001 Scope of Rules.

Rulemaking Specific Authority 213.06(1) FS. Law Implemented 192.105, 193.074, 195.027, 195.084, 196.101, 201.022, 206.27, 211.125, 211.33, 212.0305(3)(d), 213.053, 213.21, 213.22, 213.27, 220.242, 336.025(2)(a), 896.102(2) FS. History–New 12-18-88, Repealed_________.

 

12-22.002 Definitions. For the purposes of this rule chapter, the terms and phrases used in these rules shall have the meanings prescribed in this section, unless a different meaning is clearly indicated by the context in which the term or phrase is used.

(1) “Department” means the Florida Department of Revenue.

(2) “Disclosure” means making known or available to any person in any manner whatsoever, a return, return information, state tax information, or federal tax information.

(3) “Debt collection agency” means any person or entity with whom the Department has contracted for the collection of taxpayers’ liabilities, as authorized pursuant to Section 213.27, F.S. “Private auditor” means a certified public accountant with whom the Department has contracted to audit taxpayer accounts pursuant to Section 213.28, F.S.

(3)(4) “Federal tax information” means any tax information furnished to the Department by the Internal Revenue Service.

(4)(5) “Return” means any report, claim, statement, notice, application, affidavit, or other document required to be filed within a prescribed period or on or before a prescribed date under the authority of any provision of those documents, declarations, reports, schedules, amendments, or other written statements filed with the Department by a taxpayer under a revenue law of this state which or rules of the Department has the responsibility of regulating, controlling, and administering. This term includes any copy of a federal income tax return or other attachments which are designed to be supplemental to, or become a part of, a return. However, the annual report required of taxpayers who claim the enterprise zone jobs credit under ss. 220.181(3) and 212.096(4), F.S., is not included in the definition of return.

(5)(6) No change.

(7) “Revenue laws of this state” mean those laws enumerated in Section 213.053(1), F.S.

(8) through (11) Renumbered (6) through (9) No change.

Rulemaking Specific Authority 213.06(1) FS. Law Implemented 212.12, 212.13, 212.133, 213.755(2)(a),  213.03, 213.053, 213.28 FS. History–New 12-18-88, Amended 11-14-91, 6-23-92,_________.

 

12-22.003 Confidentiality of Tax Information.

Rulemaking Specific Authority 213.06(1) FS. Law Implemented 125.0104, 125.0108, 192.105, 193.074, 195.027, 195.084, 196.101, 201.022, 206.27, 211.125, 211.33, 212.0305, 212.084, 213.053, 213.21, 213.22, 213.27, 220.242, 336.025, 370.07(3), 403.718, 403.7185, 403.7195, 538.11, 624.5092, 896.102(2) FS. History–New 12-18-88, Amended 2-13-91, 11-14-91, 6-23-92, Repealed _________.

 

12-22.004 Access to Tax Information.

Rulemaking Authority 213.06(1) FS. Law Implemented 24.108(5), 212.10(1), 213.05, 213.053, 213.0535, 213.054, 213.22, 213.27, 213.28, 213.30, 896.102 FS. History–New 12-18-88, Amended 12-6-89, 2-13-91, 11-14-91, 1-5-93, 12-13-94, Repealed_________.

 

12-22.005 Disclosure Procedures.

(1) Taxpayer Requests for Tax Information.

(a) The Department will permit taxpayers or their authorized representatives to inspect and receive copies of the taxpayer’s tax returns and related documents filed with the Department, when lawfully requested. Department records are maintained by the Records Center Manager, Return and Revenue Processing, Florida within the Department of Revenue, 2450 Shumard Oak Boulevard, Records Management Room 1-4364, 5050 West Tennessee Street, Tallahassee, Florida 32399-0158, and are available for authorized inspection Monday through Friday, excluding legal holidays, between the hours of 8:00 a.m. and 5:00 p.m.

1. Taxpayers seeking disclosure of their confidential tax information in person must establish proper identification, such as a valid driver’s license or personal identification card. The signature of the taxpayer will also be compared with the signature displayed on the appropriate identification instrument;

2. Taxpayer representatives requesting confidential information in person are also required to established proper identification.

3. A taxpayer may authorize his or her representatives to receive confidential state tax information by filing a completed Power of Attorney and Declaration of Representative (Form DR-835, incorporated by reference in Rule 12-6.0015, F.A.C.), signed by the taxpayer and the representative. A taxpayer’s representative must present the executed Power of Attorney and Declaration of Representative to the Department notarized authorization or power of attorney from the taxpayer must be presented prior to the release of confidential state tax information. See (2)(b)3. of this rule.

(b) Taxpayers or their authorized representatives, after establishing their identity, may inspect, in person, any state tax documents filed by or on behalf of the same taxpayer. Audit reports that have previously been furnished to the taxpayer may also be inspected. However, audit workpapers, interoffice communications, investigative reports, and cover letters expressing opinions may not be inspected without prior authorization from the Executive Director or the Assistant Executive Director or their delegate.

(c) Prior to making state tax information available for inspection or copying, the custodian or employee making disclosure will shall disassociate all federal tax information and all other reports, documents, or information, the release of which is not authorized.

(2) Written Requests for Tax Information by a Taxpayer, Taxpayer’s Representative, or Personal Representative of an Estate.

(a)1.a. A taxpayer, a taxpayer’s authorized representative, or the personal representative of an estate may request a copy of the taxpayer’s returns by submitting a completed and signed Request for Copy of Tax Return (Form DR-841, R. 03/11, hereby incorporated by reference, effective      ) or a written request directed to the Records Center Manager, Return and Revenue Processing, Records Management, MS Room 1-4364, 5050 West Tennessee Street, Tallahassee, Florida 32399-0158.

b. Copies of forms may be obtained, without cost, by: 1) downloading the form from the Department's Internet site at www.myflorida.com/dor/forms; or, 2) calling the Department at [phone], Monday through Friday, 8:00 a.m. to 7:00 p.m., Eastern Time; or, 3) visiting any local Department of Revenue Service Center or, 4) writing the Florida Department of Revenue, Taxpayer Services, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at [phone] (Voice) and [phone] (TTY).

2. A written request must be submitted on the business’ letterhead and must include: the federal identification number or social security number of the owner, business mailing address, records requested, and the signature of the owner or a registered officer of the business.

3. Social security numbers are used by the Florida Department of Revenue as unique identifiers for the administration of Florida’s taxes. Social security numbers obtained for tax administration purposes are confidential under Sections 213.053 and 119.071, F.S., and are not subject to disclosure as public records. Collection of an individual’s social security number is authorized under state and federal law. Visit the Department’s Internet site at www.myflorida.com/dor and select “Privacy Notice” for more information regarding the state and federal law governing the collection, use, or release of social security numbers, including authorized exceptions.

(b)(a) Included in those classes of persons who are allowed access to previously submitted state tax information upon written request are the authorized representatives of corporations, partnerships, trusts, estates, receiverships, and other artificial entities.

(b) Written requests for tax information shall be signed by the taxpayer or the taxpayer’s authorized representative and shall state taxpayer’s name, address, account number, the type or class of tax and taxable period of the records requested. Requests received from corporations must be signed by a principal officer and attested to by the secretary or another officer of the corporation.

(c)1. All copies of state tax returns filed by or on behalf of a taxpayer are sent directly to the taxpayer’s address of record unless the taxpayer requests, by power of attorney or proper written authorization, that the information be sent to another address.

2. A taxpayer’s representative must may be authorized to receive copies of state tax returns and state tax information on behalf of the taxpayer. An authorized representative must attach an executed Power of Attorney and Declaration of Representative (Form DR-835) to the Request for Copy of Tax Return (Form DR-841) The taxpayer must submit written authorization for such disclosure prior to the release of any returns or return information by the Department.

3. A taxpayer may authorize his representative to receive confidential state tax information by a documented Power of Attorney filed with the Department. The Department prescribes form DR-835, Power of Attorney and Declaration of Representative (incorporated by reference in Rule 12-6.0015, F.A.C.), as the form to be used for the purposes of this chapter.

3.4. The Department will shall review all written requests for state tax information and determine the authenticity of the request prior to disclosing any confidential tax information. Any document which authorizes a taxpayer’s representative to receive confidential state tax information submitted by the taxpayer should be included with the written request for tax records and directed to the Records Center Manager, Return and Revenue Processing, Records Management Room 1-4364, 5050 West Tennessee Street, Tallahassee, Florida 32399-0158.

(3) Telephone Requests for Tax Information. Department employees may disclose confidential state tax information by telephone only when the identity of the caller is established as that of the taxpayer or the taxpayer’s his authorized representative.

(a) Persons who claim to be taxpayers will be advised that the requested information must be researched for a return call. The return telephone number must be verified as belonging to the taxpayer prior to the disclosure of any state tax information.

(b) A person who claims to be an authorized representative of a taxpayer must have a completed Power of Attorney and Declaration of Representative (Form DR-835) signed by the taxpayer and the representative letter of authorization or power of attorney on file with the Department. The representative will be advised that upon verification of such authorization, requested state tax information will be researched for a return call. The return telephone number must be verified as belonging to the authorized taxpayer representative prior to the disclosure of any tax information.

(c) Persons who request copies of state tax information by telephone will be advised that the requested information will be mailed to the address of the taxpayer on record, unless the taxpayer submits a written authorization requesting that the documents be sent elsewhere.

(4) Written Requests for Tax Information by Government Agencies and Officials. The Department may provide tax information to any federal, state, or local agency or official specifically authorized by Section 213.053, F.S. All requests for information must be in writing and directed to the Security and Disclosure Officer, Florida Department of Revenue, P.O. Box 6668, Tallahassee, Florida 32314-6668, for review and clearance prior to disclosure. The Security and Disclosure Officer maintains all written agreements between the Executive Director and agencies authorized to receive information and periodically reviews the procedures and the disclosure activity of the Department to ensure compliance with statutes governing the confidentiality of tax information. Any questions or requests not covered by existing procedures or agreements must be directed to the Security and Disclosure Officer. Requests for Statistical Information. Statistical reports, compiled from tax return information, shall be released by the Department if such tabulations are so classified to prevent the identification of particular accounts, reports, declarations, or returns. All requests seeking statistical information compiled from tax return information should be addressed to the Program Director, Information Services Program, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Requests which require special programming will be subject to a fee based on the cost of preparation.

(5) Written Requests for Tax Information Involving the Administration of a Bankruptcy Estate. Requests for information allowed under Section 213.053(12), F.S., must be directed to the Administrator, Bankruptcy Section, Florida Department of Revenue, P. O. Box 6668, Tallahassee, Florida 32314-6668.

(6)(5) No change.

(7) Subpoenas under Section 213.053(8), F.S., seeking disclosure of reports of large currency transactions filed with the Department under Section 896.102(1), F.S., should be addressed to the Criminal Investigations Process Owner, Florida Department of Revenue, 2450 Shumard Oak Boulevard, Tallahassee, Florida 32399-0100, as custodian of the reports.

(8) Orders of a judge and criminal and RICO Act subpoenas which seek disclosure of all other tax information should be served on the Records Manager, Florida Department of Revenue, 2450 Shumard Oak Boulevard, Tallahassee, Florida 32399-0158, as the designated custodian of records for the Department.

Rulemaking Authority 213.06(1), 213.22(4) FS. Law Implemented 213.053, 213.22 FS. History–New 12-18-88, Amended 1-25-12,_________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Janet Young, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone].
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 11, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: A Notice of Proposed Rule Development was published in the Florida Administrative Weekly on July 20, 2012 (Vol. 38, No. 29, pp. 2894 - 2895), to advise the public of the proposed changes to Rule Chapter 12-22, F.A.C. (Confidentiality and Disclosure of Tax Information), and to provide that, if requested in writing, a rule development workshop would be held on August 8, 2012. No request was received by the Department. No written comments were received by the Department.