Agent and Broker Handling of Federal Tax Information

Tax forms with a padlock

Federal Tax Information (FTI) is classified as confidential and may not be used or disclosed except as expressly authorized by the Internal Revenue Code, which may require written consent of a taxpayer in certain situations.

As an agent or broker operating in an Individual Marketplace, it is possible that we may encounter FTI when assisting with eligibility appeals. If you are an agent or broker and also a tax return preparer or work closely (e.g., share an office) with a tax return preparer (even if a small number of clients) we are subject to the tax return preparer disclosure rules set forth in Internal Revenue Code § 7216.

Special protections apply to FTI:

  • By law, agents and brokers may not enter into business partner agreements that authorize access to FTI except in accordance with the Internal Revenue Code and Internal Revenue Service (IRS) approval.
  • If a privacy incident involves a possible improper inspection or disclosure of FTI, the individual making the observation or receiving information should contact the office of the appropriate Special Agent-in-Charge, Treasury Inspector General for Tax Administration (TIGTA), and the IRS.
  • Remember, FTI may not be disclosed to anyone without proper authorization.

As your independent broker, you can rest assured that your information, if disclosed is safe with our firm.


Agents and brokers operating in the Individual Marketplaces or the Federally-facilitated Marketplaces for the Small Business Health Options Program (FF-SHOP) (or both) must enter into an Agreement that specifies the types of PII that may be collected or received, the authorized uses of such PII, and requirements for its destruction. The Agreement also outlines when and how termination of the Agreement may occur. This Agreement is called the “Agreement Between Agent or Broker and the Centers for Medicare & Medicaid Services (CMS) for the Federally-facilitated Exchange Individual Market” or the “Agreement Between Agents and Brokers and the CMS for the Federally-facilitated Exchange Small Business Health Options Program (SHOP),” depending on the Market to which it applies. Agents and brokers may only use or disclose PII to the extent necessary to carry out the functions authorized in these Privacy and Security Agreements.

By signing the applicable version of this Agreement, each agent and broker consents to comply with the Marketplace’s privacy and security standards, established by CMS, which are defined in the Agreements’ Appendix A, titled “Privacy and Security Standards and Implementation Specifications for Non-Exchange Entities.”

Have more questions about  your eligibility for health care premium tax credits or coverage? Contact your Total Benefit Solutions, Inc PPACA expert today at (215)355-2121 or (800)924-6718.