FR 2025-01359

The document from the Federal Register announces that the Department of the Treasury is planning to submit requests for information collection to the Office of Management and Budget (OMB). This is being done in line with the Paperwork Reduction Act of 1995, and it involves a new form being used by the Internal Revenue Service (IRS). This new form is called the IRS Governmental Liaison (GL) Data Exchange Request, and it carries the form number 15426. The document invites the public to comment on these requests by February 20, 2025.

General Summary

The primary purpose of this document is to inform the public about the submission of a new information collection request to the OMB. This request involves a form designed to facilitate collaboration between IRS business units and various external governmental agencies for the purpose of exchanging tax return information. The announcement provides details about how to access and comment on this information collection online, ensuring that stakeholders have the opportunity to participate in the process.

Significant Issues or Concerns

Several issues and concerns are apparent in this document. Firstly, although it introduces a new form (Form 15426), the document lacks specific details about what data will be collected or the exact implications of this data collection. This lack of detail might impede stakeholders' ability to provide informed comments or feedback.

Moreover, the instructions for submitting comments, while functional, could be clearer. The document could benefit from more detailed guidance on navigating the website used for public comments. Furthermore, there is a notable absence of information regarding privacy protections or data security measures, despite dealing with the sensitive nature of tax return information. This is a potential area of concern for those whose data might be exchanged.

Impact on the Public

Broadly speaking, the document could impact the public by setting a precedent for how tax information is shared between the IRS and other agencies. The Paperwork Reduction Act is intended to minimize the burden of paperwork on the public, and any new information collection needs careful scrutiny. The lack of clarity regarding data security and privacy could raise concerns among individuals wary of how their tax information might be handled.

Impact on Specific Stakeholders

For Federal, State, and local agencies—the primary stakeholders in this information exchange—the new form could streamline processes and improve collaboration. This could potentially lead to more efficient and effective governance, depending on the outcomes of these exchanges.

However, the absence of detailed information about the projected impacts or benefits of such collaboration might leave these stakeholders uncertain about the necessity or usefulness of the initiative. Additionally, without clear assurances or guidelines on data protection, agencies might be hesitant to engage fully in this new data exchange process.

Overall, while the initiative has the potential to enhance efficiency in governmental operations, significant steps should be taken to address concerns regarding data handling and to improve the clarity of the public comment process. This would ensure that stakeholders are well-informed and adequately protected.