42-2003

42-2003. Authorized disclosure of confidential
information

A. Confidential information relating to:

1. A taxpayer may be disclosed to the taxpayer, its successor in interest or a
designee of the taxpayer who is authorized in writing by the taxpayer. A principal
corporate officer of a parent corporation may execute a written authorization for a
controlled subsidiary.

2. A corporate taxpayer may be disclosed to any principal officer, any person
designated by a principal officer or any person designated in a resolution by the
corporate board of directors or other similar governing body.

3. A partnership may be disclosed to any partner of the partnership. This exception
does not include disclosure of confidential information of a particular partner unless
otherwise authorized.

4. An estate may be disclosed to the personal representative of the estate and to
any heir, next of kin or beneficiary under the will of the decedent if the department
finds that the heir, next of kin or beneficiary has a material interest which will be
affected by the confidential information.

5. A trust may be disclosed to the trustee or trustees, jointly or separately, and
to the grantor or any beneficiary of the trust if the department finds that the grantor
or beneficiary has a material interest which will be affected by the confidential
information.

6. Any taxpayer may be disclosed if the taxpayer has waived any rights to
confidentiality either in writing or on the record in any administrative or judicial
proceeding.

7. The name and taxpayer identification numbers of persons issued direct payment
permits may be publicly disclosed.

B. Confidential information may be disclosed to:

1. Any employee of the department whose official duties involve tax administration.

2. The office of the attorney general solely for its use in preparation for, or in
an investigation which may result in, any proceeding involving tax administration before
the department or any other agency or board of this state, or before any grand jury or
any state or federal court.

3. The department of liquor licenses and control for its use in determining whether
a spirituous liquor licensee has paid all transaction privilege taxes and affiliated
excise taxes incurred as a result of the sale of spirituous liquor, as defined in section
4-101, at the licensed establishment and imposed on the licensed establishments by this
state and its political subdivisions.

4. Other state tax officials whose official duties require the disclosure for
proper tax administration purposes if the information is sought in connection with an
investigation or any other proceeding conducted by the official. Any disclosure is
limited to information of a taxpayer who is being investigated or who is a party to a
proceeding conducted by the official.

5. The following agencies, officials and organizations, if they grant substantially
similar privileges to the department for the type of information being sought, pursuant
to statute and a written agreement between the department and the foreign country,
agency, state, Indian tribe or organization:

(a) The United States internal revenue service, alcohol and tobacco tax and trade
bureau of the United States treasury, United States bureau of alcohol, tobacco, firearms
and explosives of the United States department of justice, United States drug enforcement
agency and federal bureau of investigation.

(b) A state tax official of another state.

(c) An organization of states, federation of tax administrators or multistate tax
commission that operates an information exchange for tax administration purposes.

(d) An agency, official or organization of a foreign country with responsibilities
that are comparable to those listed in subdivision (a), (b) or (c) of this paragraph.

(e) An agency, official or organization of an Indian tribal government with
responsibilities comparable to the responsibilities of the agencies, officials or
organizations identified in subdivision (a), (b) or (c) of this paragraph.

6. The auditor general, in connection with any audit of the department subject to
the restrictions in section 42-2002, subsection D.

7. Any person to the extent necessary for effective tax administration in
connection with:

(a) The processing, storage, transmission, destruction and reproduction of the
information.

(b) The programming, maintenance, repair, testing and procurement of equipment for
purposes of tax administration.

8. The office of administrative hearings relating to taxes administered by the
department pursuant to section 42-1101, but the department shall not disclose any
confidential information:

(a) Regarding income tax, withholding tax or estate tax.

(b) On any tax issue relating to information associated with the reporting of
income tax, withholding tax or estate tax.

9. The United States treasury inspector general for tax administration for the
purpose of reporting a violation of internal revenue code section 7213A (26 United States
Code section 7213A), unauthorized inspection of returns or return information.

10. The financial management service of the United States treasury department for
use in the treasury offset program.

11. The United States treasury department or its authorized agent for use in the
state income tax levy program and in the electronic federal tax payment system.

12. The department of commerce for its use in:

(a) Qualifying motion picture production companies for the tax incentives provided
for motion picture production under chapter 5 of this title and sections 43-1075 and
43-1163.

(b) Qualifying applicants for the motion picture infrastructure project tax credits
under sections 43-1075.01 and 43-1163.01.

(d) Fulfilling its annual reporting responsibility pursuant to section 41-1511,
subsections U and V and section 41-1517, subsections S and T.

13. A prosecutor for purposes of section 32-1164, subsection C.

14. The state fire marshal for use in determining compliance with and enforcing
title 41, chapter 16, article 3.1.

15. The department of transportation for its use in administering taxes and
surcharges prescribed by title 28.

C. Confidential information may be disclosed in any state or federal judicial or
administrative proceeding pertaining to tax administration pursuant to the following
conditions:

1. One or more of the following circumstances must apply:

(a) The taxpayer is a party to the proceeding.

(b) The proceeding arose out of, or in connection with, determining the taxpayer's
civil or criminal liability, or the collection of the taxpayer's civil liability, with
respect to any tax imposed under this title or title 43.

(c) The treatment of an item reflected on the taxpayer's return is directly related
to the resolution of an issue in the proceeding.

(d) Return information directly relates to a transactional relationship between a
person who is a party to the proceeding and the taxpayer and directly affects the
resolution of an issue in the proceeding.

2. Confidential information may not be disclosed under this subsection if the
disclosure is prohibited by section 42-2002, subsection C or D.

D. Identity information may be disclosed for purposes of notifying persons entitled
to tax refunds if the department is unable to locate the persons after reasonable effort.

E. The department, upon the request of any person, shall provide the names and
addresses of bingo licensees as defined in section 5-401, verify whether or not a person
has a privilege license and number, a distributor's license and number or a withholding
license and number or disclose the information to be posted on the department's website
or otherwise publicly accessible pursuant to section 42-1124, subsection F and section
42-3201, subsection A.

F. A department employee, in connection with the official duties relating to any
audit, collection activity or civil or criminal investigation, may disclose return
information to the extent that disclosure is necessary to obtain information which is not
otherwise reasonably available. These official duties include the correct determination
of and liability for tax, the amount to be collected or the enforcement of other state
tax revenue laws.

G. If an organization is exempt from this state's income tax as provided in section
43-1201 for any taxable year, the name and address of the organization and the
application filed by the organization upon which the department made its determination
for exemption together with any papers submitted in support of the application and any
letter or document issued by the department concerning the application are open to public
inspection.

H. Confidential information relating to transaction privilege tax, use tax,
severance tax, jet fuel excise and use tax and rental occupancy tax may be disclosed to
any county, city or town tax official if the information relates to a taxpayer who is or
may be taxable by the county, city or town. Any taxpayer information released by the
department to the county, city or town:

1. May only be used for internal purposes.

2. May not be disclosed to the public in any manner that does not comply with
confidentiality standards established by the department. The county, city or town shall
agree in writing with the department that any release of confidential information that
violates the confidentiality standards adopted by the department will result in the
immediate suspension of any rights of the county, city or town to receive taxpayer
information under this subsection.

I. The department may disclose statistical information gathered from confidential
information if it does not disclose confidential information attributable to any one
taxpayer. The department may disclose statistical information gathered from confidential
information, even if it discloses confidential information attributable to a taxpayer,
to:

1. The state treasurer in order to comply with the requirements of section 42-5029,
subsection A, paragraph 3.

2. The joint legislative income tax credit review committee and the joint
legislative budget committee staff in order to comply with the requirements of section
43-221.

J. The department may disclose the aggregate amounts of any tax credit, tax
deduction or tax exemption enacted after January 1, 1994. Information subject to
disclosure under this subsection shall not be disclosed if a taxpayer demonstrates to the
department that such information would give an unfair advantage to competitors.

K. Except as provided in section 42-2002, subsection C, confidential information,
described in section 42-2001, paragraph 2, subdivision (a), item (iii), may be disclosed
to law enforcement agencies for law enforcement purposes.

L. The department may provide transaction privilege tax license information to
property tax officials in a county for the purpose of identification and verification of
the tax status of commercial property.

M. The department may provide transaction privilege tax, luxury tax, use tax,
property tax and severance tax information to the ombudsman-citizens aide pursuant to
title 41, chapter 8, article 5.

N. Except as provided in section 42-2002, subsection D, a court may order the
department to disclose confidential information pertaining to a party to an action. An
order shall be made only upon a showing of good cause and that the party seeking the
information has made demand upon the taxpayer for the information.

O. This section does not prohibit the disclosure by the department of any
information or documents submitted to the department by a bingo licensee. Before
disclosing the information the department shall obtain the name and address of the person
requesting the information.

P. If the department is required or permitted to disclose confidential information,
it may charge the person or agency requesting the information for the reasonable cost of
its services.

Q. Except as provided in section 42-2002, subsection D, the department of revenue
shall release confidential information as requested by the department of economic
security pursuant to section 42-1122 or 46-291. Information disclosed under this
subsection is limited to the same type of information that the United States internal
revenue service is authorized to disclose under section 6103(l)(6) of the internal
revenue code.

R. Except as provided in section 42-2002, subsection D, the department of revenue
shall release confidential information as requested by the courts and clerks of the court
pursuant to section 42-1122.

S. To comply with the requirements of section 42-5031, the department may disclose
to the state treasurer, to the county stadium district board of directors and to any city
or town tax official that is part of the county stadium district confidential information
attributable to a taxpayer's business activity conducted in the county stadium district.

T. The department shall release confidential information as requested by the
attorney general for purposes of determining compliance with and enforcing section
44-7101, the master settlement agreement referred to therein and subsequent agreements to
which the state is a party that amend or implement the master settlement
agreement. Information disclosed under this subsection is limited to luxury tax
information relating to tobacco manufacturers, distributors, wholesalers and retailers
and information collected by the department pursuant to section 44-7101(2)(j).

U. For proceedings before the department, the office of administrative hearings,
the board of tax appeals or any state or federal court involving penalties that were
assessed against a return preparer, an electronic return preparer or a payroll service
company pursuant to section 42-1103.02, 42-1125.01 or 43-419, confidential information
may be disclosed only before the judge or administrative law judge adjudicating the
proceeding, the parties to the proceeding and the parties' representatives in the
proceeding prior to its introduction into evidence in the proceeding. The confidential
information may be introduced as evidence in the proceeding only if the taxpayer's name,
the names of any dependents listed on the return, all social security numbers, the
taxpayer's address, the taxpayer's signature and any attachments containing any of the
foregoing information are redacted and if either:

1. The treatment of an item reflected on such return is or may be related to the
resolution of an issue in the proceeding.

2. Such return or return information relates or may relate to a transactional
relationship between a person who is a party to the proceeding and the taxpayer which
directly affects the resolution of an issue in the proceeding.

3. The method of payment of the taxpayer's withholding tax liability or the method
of filing the taxpayer's withholding tax return is an issue for the period.

V. The department may disclose to the attorney general confidential information
received under section 44-7111 and requested by the attorney general for purposes of
determining compliance with and enforcing section 44-7111. The department and attorney
general shall share with each other the information received under section 44-7111, and
may share the information with other federal, state or local agencies only for the
purposes of enforcement of section 44-7101, section 44-7111 or corresponding laws of
other states.

W. The department may provide the name and address of qualifying hospitals and
qualifying health care organizations, as defined in section 42-5001, to a business
classified and reporting transaction privilege tax under the utilities classification.