Relationship with IRS
CCA has an agreement with the IRS to obtain federal tax information ("FTI"). CCA’s IRS Data Exchange Program, in existence since 1989, has been expanded to all member municipalities and significantly enhances CCA’s existing compliance and audit programs. Utilization of FTI has the potential to increase both compliance and revenue.
This long-running program expanded to all CCA member communities because of the passage of the Tax Relief and Healthcare Act of 2006. Prior to this law change, federal law allowed the IRS to share confidential taxpayer information with only municipalities with populations greater than 250,000.
The IRS information sharing program requires strict compliance with FTI safeguard procedures. Safeguarding FTI and protecting taxpayer privacy are of paramount concern to both CCA and the IRS. CCA has always complied with all IRS FTI requirements and has been commended by the IRS for the level of security it provides FTI.