PURPOSE

As employees of the State of Minnesota, we are obliged to respect and honor the trust that has been placed in us. We must insure that information entrusted to us by taxpayers is not released to anyone other than the person that provided it to us, or that person’s authorized representative, or to persons or agencies authorized by statute.

This memo describes actions that we must take to protect information and the penalties that may be imposed if unauthorized disclosures occur. Employees are to review this memo at least once each year.

Results of Improper Disclosure

Improper disclosure of tax information can harm both the Department of Employment and Economic Development (DEED) and our customers:

• It may damage a person's reputation or business.
• It may offer an unfair advantage to the employer's business competitors.
• It can result in adverse publicity for DEED.
• It may damage DEED’ credibility.
• It may result in personal liability for damages.

We must routinely take steps to protect the data entrusted to us. In the event of a lawsuit, the State of Minnesota will defend an employee who, in the course of normal job duties, mistakenly releases data to an unauthorized person. However, willful and knowing disclosure of data to a person who is not authorized to receive it can be grounds for dismissal.

Private and Nonpublic Information

Minnesota Statute 268.19 provides in part that: “…data gathered from any employer or individual....are private data on individuals or nonpublic data....and may not be disclosed except pursuant to a court order...”

Private data is information on individuals. Nonpublic data is information on entities other than individuals, such as corporations and partnerships. Under the Minnesota Government Data Practices Act, private data is available only to the employer involved and to DEED employees who need the information to carry out official duties. Nonpublic data is essentially treated the same as private data.

Minnesota Code of Ethics

The Minnesota Code of Ethics governs disclosure of private information by employees of the State of Minnesota. The Code states:

“An employee… shall not use confidential information to further the employee’s private interest, and shall not accept outside employment or involvement in a business or activity that will require the employee to disclose or use confidential information.”

For example, you may not use the wage detail file to track down a person that owes you money, or to do an informal credit check on someone that may buy your car.

The Code also states:

“Any person who willfully violates the provisions of this chapter or any rules adopted under this chapter is guilty of a misdemeanor. Willful violation of this chapter by any public employee constitutes just cause for suspension without pay or dismissal of the public employee.”

Penalties for Unlawful Disclosure of IRS Data

We cannot disclose taxpayer return information obtained from the IRS, such as name, address and federal identification number, to anyone except the subject taxpayer. No disclosure of IRS information can be made to any employee of DEED except as needed to administer UI tax functions.

The Internal Revenue Code states that willful disclosure of return information to an unauthorized person is a felony punishable by a fine up to $5,000 and imprisonment for up to five years. In addition, a taxpayer may start court action to seek compensation for disclosure of returns and return information made in willful or negligent violation of the Code. Compensation can be awarded for actual damages, costs, and punitive damages. The liability may be personal.

This applies only to information that we receive from the IRS, and only if there is willful intent to cause harm. If you are reasonably assured that the person to whom you give data is authorized to receive it, then you are not willfully causing harm.

Actions that We Must Take to Safeguard Data

Take the following steps to avoid improper disclosure of information:

Workstation PC’s – Do not allow unauthorized persons to use your PC if it is signed on to access employer files. If you use anyone else's PC, sign on using your access code and sign off when finished. Do not share your access code.

Information at Workstations – Information from employers or applicants must be protected from observation by other employers, applicants, or anyone whose job does not require access. Ensure that visitors to your workstation cannot observe private data furnished to DEED by someone else.

Employer Files – We must maintain the security of the files room. Unauthorized persons should be challenged and denied access. Ask the Files Unit Supervisor if you are uncertain about a person’s right to access. Employer files should not leave the fourth floor except as needed to conduct official business. Complete a charge out slip for any file that you remove from the files room.

Microfiche – We must account for all copies of microfiche. Return them promptly to the file drawers. Destroy obsolete copies.

Outgoing Correspondence – Correspondence containing specific employer information can only be sent to the employer or someone having Power of Attorney. Power of Attorney can be assigned electronically using the Role Assignment process in the Employer Self-Service online System.

Information Received From the IRS – Requests for IRS information must be made through the Disclosure Officer. Federal law requires that we store all information received from the IRS in locked cabinets with controlled access. Do not place it in the employer file. We must account for each item received, how it is used, and how we dispose of it. Return all IRS documents to the Disclosure Officer for destruction. Shred all other documents relating to information furnished by the IRS when no longer needed.

Legislative Inquiry – If a legislator or congressional representative intervenes on behalf of an employer, you may assume that the employer authorized the inquiry and provide the information. If a legislator asks for an opinion about the fairness of a law or rule, refer the issue to your section's Director. When you send a reply to someone other than the employer, send a copy to the employer.

Conversations – Do not discuss details of a case in an area where you may be overheard by unauthorized persons.

Walk-In Taxpayers – Presume that a visitor who wants to discuss a particular bill, charge statement, or other document received from DEED is authorized to receive information about it. If they come in without some type of document and ask for specific information, require identification before providing the information. Before showing an employer file to the employer, review the file and remove such things as allegations of fraud or information tips from other sources.

Visitors From Other Government Agencies – Refer visitors from other agencies to the Disclosure Officer.

Requests from Data Subjects – Employees will occasionally request verification or proof of wages. These requests must be in writing to the Disclosure Officer.

Disposal of Paper – Our paper recycling operation meets security requirements for proper disposal of most paper. Shred any documents that you consider extremely sensitive.

Telephone Calls and E-Mail – This is the most difficult area to control against unauthorized disclosure. The following guidelines will assist you:

a. You may give general information to anyone.

b. You may not give ownership information to anyone except personnel who administer UI programs.

c. You may give all other information by telephone or e-mail only if you are convinced that the person is authorized to receive it. Ask questions to establish the person’s identity, such as the account number or business address. You may also find the relationship of the person to the employer on the wage detail file or in the employer file. An employer who verbally refers you to an accountant or attorney is providing authorization. An employer's spouse who says that he or she is responsible for bookkeeping can be considered authorized.

d. You may give rate information to the employer, or the employer's accountant or attorney, if they provide the account number.

e. Do not give information about taxes due or benefit charges to anyone other than the employer or an authorized representative. Consider a person who provides the account number to be authorized. If the person doesn’t have the account number, state that we will respond in writing to the employer.

f. If a person asks whether an employer is paying unemployment taxes, tell them only that you will investigate. Liability information is nonpublic data, and may not be disclosed to unauthorized persons.

g. A request from an employee of another government agency must be in writing unless you know that the person is authorized based on letters or lists submitted by that agency. If in doubt, contact the Disclosure Officer.

h. If you have doubts about a person’s identity, state that you will respond in writing to the employer.

Special Status of Successors

A successor is entitled to certain information from a predecessor's account. A successor that has been determined liable for the debt of a predecessor can be provided with a quarterly breakdown of the amount of tax, interest, and penalty due. If we have transferred a predecessor’s experience rating record to a successor, we may give the successor information about taxable payroll and benefit charges used to compute tax rates. Prior to the actual acquisition of a predecessor, a potential successor can only get this information if the request is in writing and they supply a written release from the predecessor.

Agencies Currently Authorized to Access Our Data

The following agencies are currently authorized to access our data files:

• U.S. Department of Labor
• U.S Immigration and Naturalization Service
• U.S. Department of Health and Human Services
• U.S Department of Housing and Urban Development
• U.S. Bureau of Alcohol, Tobacco and Firearms
• Internal Revenue Service
• Veterans Administration
• Railroad Retirement
• Federal Parent Locator Service
• Minnesota Office of the Attorney General
• Minnesota Department of Revenue
• Minnesota Department of Human Services
• Minnesota Department of Labor and Industry
• Minnesota Department of Health
• Minnesota State Colleges and Universities (MCSCU)
• Minnesota Family Investment Program (MFIP)
• Minnesota Food Support Employment and Training (FSET)
• Wisconsin County Child Support
• Other States’ Employment Security Agencies
• County Welfare Offices
• Housing and Redevelopment Authorities
• Law Enforcement Agencies (last known address and employment location only)

Each agency listed is entitled to request and receive certain information which may vary from agency to agency. Some agencies only receive information by computer, while others are allowed to call. If in doubt, contact the Disclosure Officer.

This memorandum replaces the following memorandum:

August 16, 1994 - “Guidelines for Maintaining the Security of Information”