Z-0657.3 _______________________________________________
HOUSE BILL 1357
_______________________________________________
State of Washington 52nd Legislature 1991 Regular Session
By Representatives Fraser, Holland, Wang, Wynne, Winsley, Moyer, Paris and May; by request of Department of Revenue.
Read first time January 28, 1991. Referred to Committee on Revenue.
AN ACT Relating to the public disclosure of tax information; amending RCW 82.32.330; adding a new section to chapter 82.32 RCW; and prescribing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.32.330 and 1990 c 67 s 1 are each amended to read as follows:
(1)
Returns and tax information shall be confidential and privileged, and except
as ((hereinafter provided it shall be unlawful for)) authorized by
this section, neither the department of revenue ((or)) nor
any ((member, deputy, clerk)) officer, employee, agent, ((employee,))
or representative thereof ((or)) nor any other person ((to
make known or reveal)) may disclose any ((facts or information
contained in any return filed by any taxpayer or disclosed in any investigation
or examination of the taxpayer's books and records made in connection with the
administration hereof)) return or tax information.
(2)
The foregoing, however, shall not ((be construed to)) prohibit the
department of revenue or ((a member or)) an officer, employee,
agent, or representative thereof from: (((1) Giving)) (a)
Disclosing such ((facts)) return or tax information ((in
evidence in any court action involving)) in a judicial or administrative
proceeding (i) in respect of any tax imposed ((hereunder or involving a
violation of the provisions hereof or involving)) under the laws of this
state if the taxpayer is a party to the proceeding, or the proceeding arose out
of, or in connection with, determining the taxpayer's civil or criminal
liability, or the collection of such civil liability, or (ii) in which the
taxpayer and another state ((department and the taxpayer; (2) giving
such facts and information to the taxpayer or his duly authorized agent; (3)))
agency are parties to the proceeding; (b) disclosing, subject to such
requirements and conditions as the director shall prescribe by rules adopted
pursuant to chapter 34.05 RCW, the return of any taxpayer, or tax information
with respect to such taxpayer, to the taxpayer or to such person or persons as
the taxpayer may designate in a written request for or consent to such
disclosure, or to any other person at the taxpayer's request to the extent
necessary to comply with a request for information or assistance made by the
taxpayer to such other person: PROVIDED, That tax information shall not be
disclosed to the taxpayer or such person or persons if the director determines
that such disclosure would compromise any investigation or litigation by any
federal, state, or local government agency in connection with the civil or
criminal liability of the taxpayer or another person, or that such disclosure
is contrary to any agreement entered into by the department which provides for
the reciprocal exchange of information with other government agencies which
agreement requires confidentiality with respect to such information; (c)
publishing statistics so classified as to prevent the identification of
particular returns or reports or items thereof; (((4) giving)) (d)
disclosing such ((facts)) return or tax information,
for official purposes only, to the governor or attorney general, or to any
state ((department,)) agency, ((board, commission, council,)) or to
any committee or subcommittee of the legislature dealing with matters of
taxation, revenue, trade, commerce, the control of industry or the professions;
(((5))) (e) permitting ((its)) the department of
revenue's records to be audited and examined by the proper state officer,
his or her agents and employees; (((6) giving)) (f) disclosing
any such ((facts)) return or tax information to the proper
officer of the internal revenue service of the United States, the Canadian
government or provincial governments of Canada, or to the proper officer of the
tax department of any state or city or town or county, for official purposes,
but only if the statutes of the United States, Canada or its provincial
governments, or of such other state or city or town or county, as the case may
be, grants substantially similar privileges to the proper officers of this
state; or (((7) giving)) (g) disclosing any such ((facts))
return or tax information to the Department of Justice, the
Bureau of Alcohol, Tobacco and Firearms of the Department of the Treasury, ((or
the army or navy departments of the United States)) the Department of
Defense, the United States customs service, the coast guard of the United
States, and the United States department of transportation, or any authorized
representative thereof, for official purposes; (h) publishing or otherwise
disclosing the text of a written determination designated by the director as a
precedent pursuant to section 2 of this act; or (i) disclosing, in a manner
that is not associated with other tax information, the taxpayer name, business
address, mailing address, revenue tax registration numbers, standard industrial
classification code of a taxpayer, and the dates of opening and closing of
business.
(3)
Any person acquiring knowledge of ((such facts)) any return or tax
information in the course of his or her employment with the department
of revenue and any person acquiring knowledge of ((such facts and)) any
return or tax information as provided under (((4), (5), (6) and (7)
above)) subsections (2) (d), (e), (f), or (g) of this section, who
((reveals or makes known)) discloses any such ((facts)) return
or tax information to another person not entitled to knowledge of
such ((facts)) return or tax information under the
provisions of this section, shall upon conviction be punished by a fine
((of)) not exceeding one thousand dollars and, if the ((offender or))
person guilty of such violation is an officer or employee of the state, ((he))
such person shall forfeit such office or employment and shall be
incapable of holding any public office or employment in this state for a period
of two years thereafter.
(4) For purposes of this section:
(a) "Disclose" means to make known to any person in any manner whatever a return or tax information;
(b) "Return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state which is filed with the department of revenue by, on behalf of, or with respect to a person, and an amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed;
(c) "Tax information" means (i) a taxpayer's identity, (ii) the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability deficiencies, overassessments, or tax payments, (iii) whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, (iv) a part of a written determination that is not designated as a precedent and disclosed pursuant to section 2 of this act, or a background file document relating to a written determination, and (v) other data received by, recorded by, prepared by, furnished to, or collected by the department of revenue with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense;
(d) "State agency" means every Washington state office, department, division, bureau, board, commission, or other state agency; and
(e) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer.
NEW SECTION. Sec. 2. A new section is added to chapter 82.32 RCW to read as follows:
(1) The director may designate certain written determinations as precedents. Written determinations designated as precedents by the director shall be made available for public inspection and shall be published by the department.
(2) Before making a written determination available for public inspection under subsection (1) of this section, the department shall delete:
(a) The names, addresses, and other identifying details of the person to whom the written determination pertains and of another person identified in the written determination; and
(b) Information the disclosure of which is specifically prohibited by any statute applicable to the department of revenue, and the department may also delete other information exempted from disclosure by chapter 42.17 RCW or any other statute applicable to the department of revenue.