FAA6.A Changes : 13 Standard Reporting : D Crossmatch Reports : .07 Federal Tax Information (FTI) Report
.07 Federal Tax Information (FTI) Report
(01/01/19 – 12/31/19)
The Internal Revenue Service (IRS) provides Arizona with a Federal Tax Information (FTI) report that identifies individuals who have had income reported to the IRS.
FAA cross matches the report to identify participants in AZTECS.
The FTI report is currently worked by the Tucson Processing Center, site code 281, mail drop 33N3, unless the case is in received or renewal status.
FTI may not be accessed by any DES personnel, contractors, volunteers, or vendors performing work from any of the following:
Virtual office
An alternate non-DES worksite
FTI/IRS information may not be printed, transmitted, or sent via email or fax. This policy prohibits FTI communication between any divisions within DES.
FTI furnished to the user and any paper material therefrom, must be destroyed by cross-cut shredder in 1 mm x 5 mm in size or smaller particles. These particles must then be placed in a locked shred bin to be re-shredded by the agency’s contracted shred company. Electronic FTI must be deleted and overwritten.
Due to the confidential nature of the information contained in the FTI reports, the FTI reports must be maintained with the highest possible degree of security. Release or misuse of confidential IRS FTI information is punishable by law. Penalties can result in fines up to $5,000 and up to five years in prison.
When an FTI Security Incident(g) occurs, complete the following:
Immediately report the security incident to the FAA office manager.
The office manager completes the Notice of Security Incident, (J-126) form.
The office manager immediately reports the security incident to the appropriate Program Security Analyst Manager and Internal Risk Management.
The Program Security Analyst Manager follows reporting requirements set forth by IRS and reports to IRS within 24 hours.
When the participant contacts the FAA office because they received the Income/Resource Match (FTI Use Only) notice (C061), advise them to call the number on the notice. Explain that when the participant does not contact the FTI worker, the case may be denied or benefits stopped.
When the FTI – Information Needed Notice (C062) is returned by the participant to the FAA office, the FAA office needs to complete the following:
Confirm with the participant that the proper verification is provided.
Upload the information into OnBase.
Document the case file(g).
Email the FTI team at [email protected] with the case name and number and confirmation that the verification requested is in OnBase.
When the case is in received or renewal status, the verification from the C062 must be received before the participant can receive benefits. When the verification is received the FAA office must determine the following:
What information is needed (Email the FTI worker to determine this)
Was any income received countable as a resource or income
Will the income continue
Was the income previously reported
When income was not reported does an overpayment exist
Once any discrepancies have been verified and any potential overpayments are written, document the case file and continue with normal processing.
NOTE When case is denied or closed, do not approve until verification from the C062 notice is received.
FAA Data Security is responsible for ensuring User Affirmation Statements (J‑129) are obtained from designated primary and secondary staff on an annual basis.