Section 2. BACKGROUND

Section 6103(l)(7)(B) of the Internal Revenue Code (IRC) authorizes the disclosure of FTI with respect to unearned income to any federal, state, or local agency administering certain programs as defined in Section 6103(l)(7)(D) that fall under the Social Security Act, the Food and Nutrition Act of 2008, Title 38 of the United States Code or certain Housing Assistance Programs. The information is to be disclosed only for purposes of, and to the extent necessary in, determining eligibility for, or the correct amount of benefits under these programs.

The FTI will be extracted from the Information Return Master File (IRMF) File Treasury/Internal Revenue Service - System of Records Notice 22.061. This file contains information returns filed by payers of income such as dividends, interest and retirement income as reported on Forms 1099 and other forms identified in Attachment 4 of this publication. The information will be extracted on a monthly basis, except January, using identifying information submitted via IRS approved secure file transfer method by the requester, also referred to as the trading partner. The FTI will likewise be transmitted back to the trading partner via IRS approved secure file transfer method.

The program to extract the information from the IRMF has been in operation since July 1, 1985. The FTI for Tax Year (TY) 2025 will be available July 2026 through June 2027.