What information, if any, does the IRS send to the Social Security Administration on a regular basis? Does the IRS send a taxpayer's income tax return to SSA? Thank you.
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IRC 6103(l)(1) provides that return information related to taxes imposed under chapters 2, 21, and 24 may be disclosed to the Social Security Administration (SSA) as needed to carry out its responsibilities under the Social Security Act. Chapter 2 relates to self-employment income and does not normally concern employers. Chapter 21 concerns Social Security and Medicare (FICA) tax, and chapter 24 deals with income tax withholding.
The IRS may therefore share information with SSA about Social Security and Medicare tax liability if necessary to establish the taxpayer's liability. This provision does not allow the IRS to disclose your tax information to SSA for any other reason. SSA employees who receive this information are bound by the same confidentiality rules as IRS employees. Therefore, they generally cannot disclose the information to a state Social Security Administrator (SSSA), state officials or other federal agencies.
https://www.irs.gov/government-entit...other%20reason. -
There may be more, but here are a few things that I can think of that Social Security Administration would need from the IRS:
1) Self employment profit, for purposes of (a) adding to the taxpayer's income for SS benefits and credits, and (b) if under 'full' retirement age, for purposes of the earnings income limit.
2) MAGI for purposes of the Medicare/IRMAA
3) Information about certain government pensions, for purpose of the Social Security Windfall Elimination Provision (WEP)
As I said, there could be other things, but those are the first things that popped into my head.
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Thank you very much for the responses. Very helpful for my client.Comment
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