are audits public information if the audit was performed on an individual tax payer? If the individual tax payer owns their own business but has no federal EIN # does that make a difference?
26 USC section 6110 makes it a crime for the IRS to disclose confidential matters about an individual. They do have the right to gather third party information, but results of audits are completely confidential on the IRS part unless a) the audit is of a public company that has to disclose the material on its financial statement, in which case it’s the corporation making the disclosure, b) the audit becomes a tax court case, in which case it is a matter of public record (http://www.ustaxcourt.gov) or c) the IRS files a notice of federal tax lien with the county recorder or serves a levy on someone that owes the audited person money. That’s it. In the typical audit, the only people who learn of it are the ones the taxpayer tells.
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The IRS is bound by confidentiality in these matters unless there is a violation of laws or statutes.
References :
26 USC section 6110 makes it a crime for the IRS to disclose confidential matters about an individual. They do have the right to gather third party information, but results of audits are completely confidential on the IRS part unless a) the audit is of a public company that has to disclose the material on its financial statement, in which case it’s the corporation making the disclosure, b) the audit becomes a tax court case, in which case it is a matter of public record (http://www.ustaxcourt.gov) or c) the IRS files a notice of federal tax lien with the county recorder or serves a levy on someone that owes the audited person money. That’s it. In the typical audit, the only people who learn of it are the ones the taxpayer tells.
References :