Section 1.31021
General Policy
Records and files of the Vermont Department of Taxes are
confidential and shall not be available for public inspection, except as
provided by this regulation.
Section
1.31022 Definitions
(a) "Person"
shall include any individual, firm, corporation, or other entity.
(b) "Return" means any tax return,
declaration of estimated tax, license application, report or similar document,
including attachments, schedules and transmittals, filed with the Department of
Taxes by any person or obtained by the Department of Taxes from any
source.
(c) "Return information"
includes a taxpayer's identity; address; whether or not a return was filed or
required to be filed; the nature, source or amount of his income, payments,
receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax
liabilities, tax payments, deficiencies or over-assessments; and any other data
furnished to or prepared or collected by the Vermont Department of Taxes with
respect to any person.
(d) "Tax
administration" includes the administration of the Department of Taxes and
supervision of the execution and application of the laws administered by the
Commissioner of Taxes; the development and administration of Vermont tax policy
relating to such laws or any proposed amendment thereto; the assessment and
collection of taxes and the enforcement of the provisions of such laws,
including litigation.
Section
1.31023 Disclosure Prohibited
Returns and return information shall be confidential, and no
present or former officer, employee or agent of the Department of Taxes shall
disclose to any person not an officer, employee or agent of the Department of
Taxes any return or return information.
Section 1.31024 Disclosure Permitted
The Commissioner may, in his or her discretion and subject to
such conditions and requirements as the Commissioner may provide, including any
confidentiality requirements of the Internal Revenue Service, upon written
request, disclose returns or return information:
A. To persons having a material interest in a
return or return information, as follows:
1.
Individual Returns
(a) That individual
taxpayer;
(b) If property
transferred by that taxpayer to a trust is sold or exchanged in a transaction
described in I.R.C. § 644, the trustee or trustees, jointly or separately,
of that trust to the extent necessary to ascertain any amount of tax imposed
upon the trust by I.R.C. § 644, or;
(c) The spouse of that taxpayer if the
taxpayer and his spouse have signified their consent to consider a gift
reported on such return as made 1/2 by him and 1/2 by the spouse pursuant to
the provisions of I.R.C. §
2513.
2. Joint Returns
Either of the individuals with respect to whom the joint
return is filed.
3.
Corporate Returns
In the case of the return of a corporation or a subsidiary
thereof:
(a) Any person designated by
resolution of its board of directors or other similar governing body;
(b) Any officer or employee of that
corporation upon written request signed by any principle officer and attested
to by the secretary or other officer;
(c) Any bona fide shareholder of record
owning one percent (1%) or more of the outstanding stock of that
corporation;
(d) If the corporation
was a foreign personal holding company, as defined by I.R.C. §
552, any
person who was a shareholder during any part of a period covered by the return
if with respect to that period, or any part thereof, that shareholder was
required under I.R.C. §
551
to include in his gross income undistributed foreign personal holding company
income of that foreign personal holding company;
(e) If the corporation was an electing small
business corporation under sub-chapter S of chapter 1 of the I.R.C., any person
who was a shareholder during any part of the period covered by the return
during which an election was in effect; or
(f) If the corporation has been dissolved,
any person authorized by the laws of the State of Vermont to act for the
corporation or any person the Commissioner finds to have a material interest
which will be affected by information contained therein.
4. Estate Returns
(a) The administrator, executor, or trustee
of that estate;
(b) Any heir at
law, next of kin, or beneficiary under the will of the decedent, but only if
the Commissioner finds that the heir at law, next of kin, or beneficiary has a
material interest which will be affected by information contained
therein.
5. Trusts
(a) The trustee or trustees, jointly or
separately;
(b) Any beneficiary of
the trust, but only if the Commissioner finds that the beneficiary has a
material interest which will be affected by information contained
therein.
6. Authorized
Representative
To any person duly authorized in writing by the taxpayer
subject to the conditions provided by the Commissioner.
7. Incompetency
In the case of an individual return where the individual is
legally incompetent: the committee, trustee, or guardian of his estate.
8. Deceased Individuals
In the case of a return of a decedent -
(a) The administrator, executor, or trustee
of his estate;
(b) Any heir at law,
next of kin, or beneficiary under the will of that decedent, or a donee of
property, but only if the Commissioner finds that the heir at law, next of kin,
beneficiary, or donee has a material interest which will be affected by
information contained therein.
9. Bankruptcy
A. If substantially all of the property of
the person with respect to whom the return is filed is in the hands of a
trustee in bankruptcy or receiver: The trustee or receiver, but only if the
Commissioner finds that the receiver or trustee, in his fiduciary capacity, has
a material interest which will be affected by information contained
therein.
B. For purposes of tax
administration provided that any person to which any return information is
disclosed by the Commissioner shall be subject to the prohibitions against
disclosure imposed by this regulation.
C. To an officer or employee of another state
or the federal government to be used in the administration of its tax laws,
provided:
1. That the information cannot
reasonably be obtained from any other source; and
2. That no state shall be eligible to receive
information under this subsection unless it agrees to provide similar
information to the State of Vermont; and
3. The Commissioner is satisfied that such
information will be subject to confidentiality rules substantially in accord
with those established by these regulations.
D. To any officer or employee of any Vermont
law enforcement authority to be used for purposes other than tax
administration, provided:
1. That the
information cannot reasonably be obtained from any other source;
2. That the Commissioner is satisfied that
such information is necessary for the prosecution of a tax-related crime;
and
3. That any person to which
return information is disclosed by the Commissioner pursuant to this section
shall be subject to the prohibitions against disclosure imposed by this
regulation.
E. In
compliance with a proper court order requiring disclosure.
F. Which appears in records otherwise
available to the public.
Section
1.31025 Statistical Information
Commissioner may compile and disclose data gathered from
returns and return information, in statistical form, provided that the data is
disclosed in a form which cannot identify or be associated with a particular
taxpayer.
Section 1.31026
Disclosure Regarding Trust Fund Accounts
The Commissioner may disclose to any person who inquires,
whether a particular business name is registered to collect Vermont income
withholding, sales and use, meals and rooms, or other trust fund tax, and, if
the name is registered, whether the account is in good standing.
Section 1.31027 Compliance With
Other Statutes
Nothing in this regulation shall prohibit the Commissioner
from complying with
4 V.S.A. §
953;
16 V.S.A. §
2843; 32 V.S.A. Chapter 3, subchapter 3; 33
V.S.A. § 2552, 2553, or
3307, subject
to such conditions as the Commissioner may impose for the reasonable protection
of the confidentiality of returns or information, and subject to restrictions
on disclosure imposed by the Internal Revenue Code.
Section 1.31028 Violation
In addition to any other penalties provided by law, any
person who violates the provisions of this regulation may be subject to
discipline, including dismissal from State employment.
