We have all heard the stories of reporters and citizens submitting Freedom of Information Act requests to the Federal Government whenever a conspiracy is assumed: the assassination of President Kennedy, the moon landing, a hidden chamber behind Mount Rushmore, aliens, and UFOs, etc. While some of the requests made public can seem trivial, there is a reasonable basis for a taxpayer to submit a Freedom of Information Act regarding their tax account records to secure a peek behind the curtain at the IRS whenever a question is posed but doesn’t get answered.

Let’s start with a bit of a history lesson, as the transparency afforded through this Act was not always in place. The Freedom of Information Act (hereafter referred to as FOIA) was enacted in 1966 and guaranteed that records of the Executive Branch of the US Government are accessible to the people. Keep in mind that FOIA only applies to records created or obtained by an agency and under agency control at the time of the request and does not apply to state governments, municipal corporations, Congress, the courts, and private citizens. An Electronic Freedom of Information Act Amendment of 1996 was adopted that expanded the categories that federal agencies must provide disclosure regarding, which offered additional rights concerning tax account inquiries and the general operation of the Internal Revenue Service.

So, how can a FOIA request help a taxpayer or tax practitioner? Here are a few of the more common examples and suggestions:

• To secure records of an ex-Power of Attorney’s actions on a taxpayer’s file.
• To secure copies of the IRS’ paperwork regarding an audit that was performed; this is very helpful as it discloses the history sheets and activity reports of the Revenue Agent’s involvement with the case and their workpapers (Form 4700 and 4700A)
• To determine the events or notations made that have impacted the Collection Statute Expiration Date on a tax liability.
• To secure a copy of the IRS’ records pertaining to the assessment of a Trust Fund Recovery Penalty and what the Revenue Officer noted to determine who could be held “willful and responsible.”

If submitting a FOIA request will benefit you or a client, be prepared to wait four to six months for a response unless it can qualify for expedited handling. In December of 2022, we submitted a request for records related to a rejected Offer in Compromise submitted by a prior Power of Attorney on behalf of a new client and did not receive the response until June of 2023. The wait was worth it, however, as we secured a copy of the Settlement Officer’s notes previously undisclosed to the taxpayer that supported our position that the Offer in Compromise should not have been rejected.

FOIA does not create a runaway train-type license to ask for and ultimately receive anything, as there are standards that are adhered to with respect to what is disclosed. The statutory exemptions or exclusions recognized protect against disclosure of information that would:

• Impact our national security,
• Impede the privacy of individuals,
• Harm the proprietary interests of a business,
• And more...

Additional information about the limitations of a FOIA request can be found on the Department of Justice Office of Information Policy website (https://www.justice.gov/oip/doj-guide-freedom-information-act-0).

The current practice by the Disclosure Department that handles FOIA requests is to send the documents requested burned on a password-protected compact disc, then send a separate communication with the password required to access the records. If you don’t have a computer with a disc drive, as most now only come with USB ports, use the wait time to find one!

The blessing of FOIA is that it introduced a legal pathway for the public to secure documentation and information that had not always been willingly shared before by the government. And when it comes to the dollars and cents impacted by the IRS, it can be an incredibly helpful tool when trying to determine details related to a tax account. If you believe you or your client has a situation that warrants a FOIA request, reach out to the Golden Lion Tax Solutions team as we have to expertise and knowledge to effectively and efficiently seek the records needed to help!

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Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate solution to fit your situation.