Are Tax Records Public Information?
Whether tax information is public depends on the laws of the taxing entity. Disclosure of tax information by employees of the IRS can be a serious crime. But information about property taxes at the local level are widely available. At the state level, some tax information may be available, depending on the state's laws.
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Federal Taxes
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Under the Internal Revenue Code, it is a misdemeanor for an IRS employee to view tax information without authorization. It is a felony for IRS employees to disclose tax information without authority. IRS regulations also apply to state agencies that obtain tax information for the purposes of state tax administration. The definition of tax information is broad and can include "from any source or
developed through any means that relates to the potential liability of any person under the Code for any tax, penalty, interest, fine, forfeiture, or other imposition or offense."
State Taxes
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Open records laws vary from state to state. Some states, like Florida and Texas, give citizens broad access to information that their taxes pay to collect. In these states, any denial of public records is reviewed by that state's attorney general office. But even in these states access to tax information -- and particularly income tax information -- is severely restricted. Exceptions exist. According to the Reporters Committee for a Free Press, a Montana court found that a law barring access to information on a tax paid by coal companies was unconstitutional. In 2002, a court in Connecticut ordered a city to comply with that state's open records law and turn over motor vehicle tax information. Contact open government advocates in your state to determine if certain tax information is available to the public.
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Local Taxes
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Taxes on real estate provide revenues to pay for local governments and school districts. In most cases, property tax records are kept by county governments. While access to that information will vary according to a state's open records laws, it is extremely rare for a local government to deny access to property tax records. Information kept by local governments will include the owner of a property, the amount of money authorities believe it is worth (which can differ from market value), the size of the lot and the type of improvements on the property. In some states, the local government can tell you what a property is worth, whether there is a fireplace on the property and whether its owner owes back property taxes. Income tax information collected by local governments is usually not a matter of public record.
Other Avenues for Access
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While tax records are often secret, detailed financial information is available through other public means. Court records that contain financial information may be available if a person has ever filed for divorce or bankruptcy. Accounting for tax purposes can differ from accounting treatment of certain transactions for the purposes of investing, publicly traded corporations file detailed information on their financial condition, and that is available to the public through the Securities and Exchange Commission. Though nonprofit corporations generally do not pay taxes, their annual financial statements are publicly available.
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- Photo Credit tax forms image by Chad McDermott from Fotolia.com
