Business > Services for Business > Federal Tax Information Safeguards Program (FTISP)

Federal Tax Information Safeguards Program (FTISP)

Many of the personal income or personal school district tax assessments that the Attorney General receives from the Department of Taxation (Tax) contain information that Tax received from the Internal Revenue Service (“IRS”). This information is called federal tax information (“FTI”). The IRS has published Publication 1075 (“1075”) which governs the protection that FTI must receive at all times. According to IRC § 6103(p)(4)(F), if the IRS determines that any state agency that receives FTI (including vendors of that agency) do not maintain adequate standards of protection, the IRS has the right to suspend the flow of FTI to that agency.

The Internal Revenue Service (“IRS”) has agreed to allow the Ohio Attorney General (“Attorney General”) to forward federal tax information (“FTI”) to collection vendors so long as the amount of vendors used for this purposes is limited to a small pool of vendors that can demonstrate the highest level of compliance with IRS Publication 1075 (“Pub 1075”). The IRS has cautioned that vendors who do not maintain a sophisticated computer system and operation will not be able to meet this standard.

The Attorney General will make its selection of the Fiscal Years 2017 and 2018 personal income tax (“PIT”) and personal school district tax (“PSD”) collection vendors on the basis of business need, sophistication of applicant’s computer system and operation, as well as the applicant’s understanding and compliance with the provisions of Pub 1075. In order to demonstrate sufficient sophistication, understanding, and compliance, the Attorney General is asking all applicants to submit an application to collect PIT and PSD accounts along with an Ohio Safeguard Security Report (“Ohio SSR”).

Applicants will be selected on the basis of all information in the possession of the Attorney General. This includes, but is not limited to, this application, the Ohio SSR, and previous audits by the Internal Audit Section of the Attorney General or the IRS where applicable. Applicants, , may be subject to over the phone interviews or IRS-style audits of their operations.

Applicants must answer questions in the application clearly and completely. Applicants are warned that blank answers are not acceptable. To the extent a duplicative question appears on the application and in the Ohio SSR or any other RFQ-related document, applicants are to answer both questions in both areas. Applicants should not cite to a prior response on another document. Applicants are encouraged to cite to and attach additional documentation to the application and certain questions will require supporting documentation.

Submissions must be clear and well organized, and supporting documentation must be clearly labeled to demonstrate to which response it relates.

Consistent with Section 3, paragraph D of the RFQ, the Attorney General will not reimburse any expenses incurred by applicants seeking to collect PIT or PSD accounts for Fiscal Years 2018 and 2019.