Uniform Exchange of Information Agreement.

In the fall of 1990, the Federation of Tax Administrators undertook to develop a Uniform Exchange Agreement that would optimally be signed by each state and, in conjunction with each state's law, en exchange tax information with other signatories. According to the Federation, "the purpose of the ag exchange of tax information among the states and improve tax compliance through three primary object

"* Create new channels of communication between states which do not currently exchange information

"* Reduce the burden of maintaining and administering multiple bilateral agreements; and

"* Provide a base for further expansion through addenda to the Agreement to accommodate specific n

The uniform agreement supersedes existing bilateral (state-to-state) exchange of information agree to those agreements specify otherwise. Significantly, the agreement provides that the state receivin such information in accordance with its confidentiality laws. Consequently, the agreement places the disclosing the information to determine prior to disclosure that the receiving state's statutes are information. The agreement further prohibits disclosure by the receiving state to any third party wi consent of the providing state. States are not required to disclose any information under the agreem voluntary, and a state may decline a request for information if, in its opinion, disclosure would co

The uniform agreement went into effect on January 1, 1993, and as of that time, 43 states have sig state -- Alaska -- is also expected to sign it.) Because of its widespread application, the agreemen

ARTICLE I

AUTHORITY

This agreement is entered into by and among the participating agencies enumerated in Article XII through their duly authorized representatives and pursuant to the authority of the statutes of their respective jurisdictions regarding the exchange of information for tax administration purposes as identified in Appendix A. The agreement shall be binding on them, their agents and employees, and their successors in office, unless and until the agreement is rescinded or modified or until the agency withdraws from the agreement pursuant to the terms contained herein. The agreement shall be the means for exchange of information among the signatory agencies. The agreement shall supersede existing bilateral exchange of information agreements unless otherwise specified in writing by the parties to such agreements.

ARTICLE II

PURPOSE

The purpose of the agreement is to enhance and facilitate tax administration in all its aspects to the extent each party to the agreement is empowered to administer its tax laws by exchanging tax information with other age

The parties intend that the information exchanged may be specifically requested or voluntarily transmitted under an established exchange procedure, in instances where the transferring party believes that such information will be useful in facilitating tax administration. Voluntary transfer of information is encouraged.

It is the understanding and intent of the parties that all information, in any form whatsoever, exchanged pursuant to the agreement shall be employed solely for the purposes of tax administration.

ARTICLE III

DEFINITIONS

For purposes of the agreement, the following definitions apply:

1. Agency. The term "agency" means the agency(ies), body(ies), office(s), department(s), cabinet(s) or commission(s) of a state which are charged under the laws of that state with the responsibility for state tax administration.

2. Agency Representative. The term "agency representative" means the heads of the agency(ies), or employees, agents or authorized representatives designated by the heads of the agency(ies) as the person or persons who are authorized to request, inspect or receive tax returns or return information pursuant to the agreement on behalf of the agency(ies), but only so long as the duties and employment of such agency(ies) head or designated employee, agent or authorized representative requires access to tax returns and return information for purposes of state tax administration.

3. Primary Clearinghouse. The term "primary clearinghouse" means the party who shall serve as the administrative depository for receipt and retention of certain information from all Signatory agencies to the agreement. Such information shall include, but not be limited to:

   (A) Current statutory provisions applicable to the exchange

   of state tax returns or state tax return information,

   and any amendments thereto;

   (B) Current statutory provisions concerning confidentiality

   of the information exchanged, the penalties for

   unlawful disclosure thereof, policies for destruction of

   such information, and any amendments thereto;

   (C) The designation, in writing, of the personnel authorized

   to request and receive tax information on behalf

   of the Signatory agencies under the terms of the

   agreement, and any amendments thereto.

   (D) Current statutory provisions relating to the exchange

   of state tax returns or state tax return information

   with state agencies other than those charged with

   the administration and collection of state taxes. The primary clearinghouse shall be the Federation of Tax Administrators, Washington, D.C.

4. Corporation. The term "corporation" includes associations, joint-stock companies, insurance companies, financial institutions and public corporations created by federal, state or local law.

5. Disclosure. The term "disclosure" means the making known to any...