Federal Tax information (FTI) is defined as return or return information received directly from the IRS or obtained through an authorized secondary source.
A return is any tax or information return, estimated tax declaration or refund claim. This includes amendments, supplements, supporting schedules, attachments, or lists.
Examples of a return are IRS Forms 1040, 941, 1120, 1099 or W-2, etc.
Return information in general is any information collected or generated by the IRS regarding any person’s liability or possible liability. This is a very broad definition.
Examples of return information could include information that the IRS obtained from another source, information extracted from a return or the taxpayers name and address.
The key to determining if the information that you have includes FTI is to look at where you obtained the information. If it came from the IRS, it is FTI.
For example, If a NCP provides you a copy of their tax return that would not be FTI because it was provided to you by the NCP. However, if you obtained that information from the IRS then it would be FTI.
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