Section 10 060 004 - CONFIDENTIALITY OF RECORDSSection 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.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; and2. That no state shall be eligible to receive information under this subsection unless it agrees to provide similar information to the State of Vermont; and3. 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; and3. 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.
10-004 Code Vt. R. 10-060-004-X
Adopted: March 30, 1979
Effective Date: April 4, 1979 (Secretary of State Rule Log #79-31)