IRS Teams Up for Data Sharing Across Government Agencies
Published Date: 1/14/2026
Notice
Summary
The IRS is kicking off a new program to share info with federal, state, and local agencies to keep data accurate and secure. This affects folks whose info is matched between agencies from January 15, 2026, to July 16, 2027. If no one objects within 30 days, the program rolls out smoothly with no extra costs or delays.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
IRS shares 1099 income with benefit agencies
If you apply for or receive federal or state benefits, the IRS may share your unearned-income return information (for example Forms 1099-DIV, 1099-INT, and W-2G) with participating federal, state, and local agencies to determine eligibility or the correct benefit amount. Agencies may request data monthly for new applicants and once per year for beneficiaries; requests include SSN and name control and IRS will disclose payee and payer names, addresses, TINs, account numbers, and income type and amount. This matching is part of the DIFSLA program running January 15, 2026 through July 16, 2027.
Many state and federal agencies will participate
The matching program lists participating federal agencies (Veterans Affairs and Social Security Administration) and named state agencies (for example, California Department of Social Services, Texas Health and Human Services Commission, New York Office of Temporary and Disability Assistance, and many others). If you are applying for or getting benefits from one of these listed agencies, that agency is expected to be able to request your IRS unearned-income information during the January 15, 2026 to July 16, 2027 term.
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Key Dates
Department and Agencies
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