Do I have to??

[les grans]

My *state* income tax return has been selected for audit or examination or whatever's the correct term of art these days. I've got no problem with that. I will blow the auditor away with perfect documentation of all the legitimate deductions on the return. However, the audit letter asks me to bring, among other things, a copy of my *federal* income tax return for that year. *Of course* I will comply with that request, because I'm a nice guy, but my question is:
Does the state have a *right* to *demand* a copy of my federal return from me? Isn't there some concept of confidentiality between me and the IRS...?? If I were to refuse to give the state auditor a copy of my federal return, where would I end up?

[Da Tax Lady]

In most states, the federal return is how you "show your work". Most of the time, the federal income figure is carried over to the state return and then adjusted according to the laws of that state. Most states receive a copy of the federal return when your state return is e-filed, so they already have the info...

Bringing the federal return will shorten the audit as there are fewer numbers to have to "back into"...

[taxea]

Do I have to??

Ask the state exactly what their questions are. This should tell you why they are asking for a copy of the Fed return.
Do not take anything they are not specifically questioning. Do not volunteer any information and if you did not bring a document to support a question with you that they did not ask when you asked what they were questioning, tell them you will have to reschedule the appointment so you can obtain the document/s needed to answer their request.
taxea

[DTS]

Federal return

Bringing the federal return will shorten the audit as there are fewer numbers to have to "back into"...

Personally, I would just take and give the auditor the Fed return. Not a big deal that I can see. Like you said, you are very confident all is OK.

Maybe, they are just wanting to see that nothing was overridden or changed on the state return.

[OtisMozzetti]

Feds can disclose to the state tax authorities

Isn't there some concept of confidentiality between me and the IRS...?? If I were to refuse to give the state auditor a copy of my federal return, where would I end up?

I am confident that there is some law and/or Treasury regulation somewhere which states that the IRS federales can disclose your tax information to the state tax authorities without any need for your authorization. So you might as well cough up the federal return for the auditor to look at. Whether you have to become, or would be wise to become, Kinko's Copies for the state is a murkier issue.

In our state, whenever the return includes anything more than a federal Sch A or federal Sch B, the taxpayer is required to attach (and pay all that postage to mail it!) a complete copy of the entire federal return when a paper state return is originally filed.

[JohnH]

---> If I were to refuse to give the state auditor a copy of my federal return, where would I end up? <---

Hey, you could just tell them to go pound sand. Then get back to us on how that strategy worked out for you. It might take a little longer after they decided to expand the audit to 3 or 4 addiitonal years, but look at all the experience you'd gain in the process.