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On January 3, 2024, the IRS sent out a notice that
Effective 02/01/2024 the IRS will no longer be providing Income Verification Express Services (IVES) to government agencies. The IRS is implementing the provisions of the Taxpayer First Act (P. Law 116-25) with increased privacy and security requirements for access to confidential tax information. The IVES program does not establish authority for government agencies to obtain tax data outside of Congressional action.
If tax transcript information is required by your agency, we recommend requesting it directly from the taxpayer. As part of the IRS’ modernization efforts designed to enhance and better protect taxpayer data, taxpayers can obtain their own tax data by accessing online account at IRS.gov.
Generally, the IRS does not engage in ongoing data exchanges with government agencies unless specific legislation, codified in IRC 6103, authorizes the agency’s access and use of tax return information to administer the program. If your agency meets this regulatory authority to request taxpayer data directly from the IRS, visit IRS Information Sharing Programs to find out more about data exchange policies and who to contact.
The notice is also available here: 2024 02 04 – IVES Policy Update For Government Agencies.
The provisions in the TFA relating to tax transcripts are found in P. Law 116-25, Secs. 2201 and 2202 (Subtitle C—Modernization of Consent Based Income Verification System), amending 26 U.S.C. Sec. 6103. The TPA became law in 2019.
IRS notices are archived online outside the U.S. Government here.