TN 60 (07-20)

SI 02310.040 Tax Data Interfaces - General

A. Introduction

Section 6103(1)(7) of the Internal Revenue Code authorizes SSA to use certain tax data in the administration of the SSI program. SSA accesses these data through interfaces with IRS and SSA's MEF. Sections SI 02310.040 - SI 02310.042 address issues common to the two tax data interfaces.

B. Definitions

Definitions of tax data interface terms are given below.

1. Authorized individual

An authorized individual is an individual to whom tax data may be disclosed.
(See SI 02310.041A.)

2. Payee

The payee is the individual or organization whose name and address appear on the payer's records; usually the taxpayer but the payee may be a third party who set up an account using the taxpayer's SSN.

3. Payer

The payer is the individual or organization which submitted the form 1099, W-2 or other report to IRS or SSA.

4. SSA data

SSA date is information contained in SSA's files prior to an interface and information obtained during the FO's independent verification. This information is subject to normal SSA disclosure procedures (see GN 03301.010) even though it may be identical to the tax data shown on the alert.

5. Tax data

Tax data is certain information on IRS and MEF interface alerts. Specifically, tax data includes the taxpayer's name, address, and SSN, type of transaction (e.g., interest, dividends, pension), and source of transaction (i.e., name of payer) and amount of transaction. (Even after the alert information is developed, safeguard the information according to SI 02310.040C.2 and SI 02310.040C.3.)

6. Taxpayer

A taxpayer is the individual under whose SSN the transaction was reported.

7. Tax year

The tax year is the calendar year to which the tax data pertain.

8. Transaction

A transaction, for purposes of tax data interfaces, is a transaction referring to the financial activity (e.g., interest or pension payment) reported to IRS or SSA on forms 1099, W2-G, or similar form.

9. Unauthorized disclosure

An unauthorized disclosure is making tax data known to anyone other than an authorized individual (as defined in SI 02310.040B.1.).

C. Procedure

See the following for tax data procedures.

1. Contact recipient

If development of the alert data is required per SI 02310.046 through SI 02310.048, contact the individual according to the instructions in SI 02310.042.

2. Retain disposition record

Retain a record of the disposition of alert information until the following year's alerts are completed in order to avoid redevelopment of the tax data. Show the payer data and the results of the development of each transaction.

For example, keep the case folder or indicate the disposition on the alert, an SSA-250 or similar form, or on the FO's personal computer.

If you use a copy of the tax data alert to show disposition, restrict access to the alerts to only those employees who need the data for case processing.

3. Destroy alert

Destroy the alert after verifying the data unless using the alert to record the disposition of the case. Do not leave the alert in the case file.

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SI 02310.040 - Tax Data Interfaces - General - 07/09/2020
Batch run: 07/09/2020