USDA PROPOSES SHARING DATA WITH IRS

CAROL EMERT

WASHINGTON (FNS) -- The U.S. Department of Agriculture's Food and Consumer Service here has issued a proposed rule that would allow it to exchange business information about food retailers and wholesalers with the Internal Revenue Service and other government agencies.

The proposal, issued in the May 12 Federal Register, is expected to help crack down on food stamp and tax fraud, as well as other violations of federal and state law. It would allow the Food and Consumer Service to share employer identification numbers and Social Security numbers with the IRS and other government entities -- including federal and state law enforcement agencies.

The EINs and SSNs would be used to maintain a list of individuals and companies "that have been sanctioned or convicted of food stamp program violations," according to the Federal Register. Edie Clark, director of media relations for the Food Marketing Institute here, said FMI is consulting with its members before taking a position on the plan. John Bode, a partner with Olsson, Frank & Weeda, outside counsel to the National-American Wholesale Grocers' Association, Falls Church, Va., said NAWGA is satisfied that the proposal includes protections to prevent unnecessary disclosure of EINs and SSNs.

Tom Wenning, senior vice president and general counsel for the National Grocers Association, Reston, Va., said the rule provides adequate protection for legitimate businesses because it institutes criminal penalties for government employees who improperly disclose information and establishes a review process that must be conducted before USDA releases information.

Interested parties may send comments by June 22 to Suzanne Fecteau, Food and Consumer Service Chief, Coupon and Retailer Branch, 3101 Park Center Drive, Alexandria, Va. 22302-1594.