Disclosure of tax return information; scope of disclosure

# (1)

"Direct owner" means a person, corporation, or other entity that owns an interest in a pass through entity without owning the interest through another entity.

# (2)

"Owner" means:

# (A)

a partner in a partnership, including a member of a limited liability company;

# (B)

a shareholder in a corporation described in IC 6-3-2-2.8(2); or

# (C)

a beneficiary of an estate or trust.

# (3)

"Pass through entity" has the meaning set forth in IC 6-3-1-35.

(b) The department may disclose return information or liabilities related to a return by a

pass through entity filed under IC 6-3 or IC 6-5.5 to a direct owner of the pass through entity, but only to the extent necessary for the direct owner to determine the direct owner's tax due or filing requirements under IC 6-3 or IC 6-5.5. For purposes of this subsection, a withholding tax return other than a return filed under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15 is not a return of a pass through entity permitted to be disclosed.

(c) The department may disclose the information from another taxpayer's return to a taxpayer, but only to the extent necessary to determine the requesting taxpayer's income, deductions, credits, or other attributes affecting the requesting taxpayer's liability for a listed tax.

(d) If the department determines that a taxpayer is personally liable for a listed tax of another taxpayer or is liable for a listed tax as a transferee of another taxpayer, the department may disclose:

(1) any information related to the other taxpayer, but only to the extent the taxpayer is personally liable for the liabilities of the other taxpayer; and

(2) any information related to amounts collected or relieved from collection with regard to the liability that the department determines is owed by the taxpayer.
As added by P.L.205-2025, SEC.23.