1. Introduction: What is Form 15094?

IRS Form 15094, officially titled Consent to Disclose Tax Information, is a specialized disclosure authorization form issued by the Internal Revenue Service (IRS). It is governed by the Tax Exempt Bonds (TEB) function within the IRS Tax Exempt and Government Entities (TE/GE) Division, bearing the official office identifier SE:T:GE:TEB.

This form is not a standard annual tax return. Instead, it is used during an IRS audit, compliance examination, or Voluntary Closing Agreement Program (VCAP) proceeding involving tax-advantaged municipal bonds. Under federal tax privacy statutes, the IRS is strictly prohibited from discussing a taxpayer’s records with third parties. Form 15094 provides the legal mechanism for a state or local government bond issuer to authorize the IRS to share confidential return information with key third parties, such as bond counsel, financial advisors, trustees, or conduit borrowers.

2. Purpose of the Form: Why Does Form 15094 Exist?

Under Internal Revenue Code Section 6103, tax returns and return information are confidential. The IRS cannot legally disclose information regarding an audit or closing agreement to anyone other than the legal taxpayer—which, in municipal finance, is the governmental bond issuer—unless the issuer executes a valid statutory disclosure consent under Treasury Regulation Section 301.6103(c)-1.

In public finance transactions, a municipal bond issue frequently involves multiple outside entities that are not the issuer. For example, in conduit financings (such as hospital bonds, private university facilities, or low-income housing projects), a private nonprofit or business borrows the bond proceeds from a municipal authority and is responsible for repaying the debt. Form 15094 solves critical communication barriers during an IRS bond audit:

Authorizing Third-Party Discussions: It allows IRS bond examiners to share audit findings, calculations, and settlement drafts directly with conduit borrowers, bond trustees, and municipal advisors.
Facilitating Closing Agreements: When resolving bond compliance issues through the TEB Voluntary Closing Agreement Program (VCAP), Form 15094 accompanies IRS transmittal letters (such as Letter 1595 and Letter 937) so all transaction participants can review the executed settlement.
Protecting Federal Privacy Standards: It establishes a strict, time-limited legal authorization that specifies exactly what bond records may be released and to whom, preventing unauthorized disclosure liabilities under federal law.

3. Who Needs to File This Form?

Form 15094 is completed and executed by municipal bond issuers involved in an active IRS examination or compliance resolution. Specifically, it applies to:

State governments, county commissions, city councils, public school boards, and municipal development authorities that issued tax-advantaged bonds (such as tax-exempt bonds, direct pay bonds, or tax credit bonds).
Governmental issuers currently undergoing an examination by the IRS Tax Exempt Bonds (TEB) office.
Issuers participating in the Tax Exempt Bonds Voluntary Closing Agreement Program (VCAP) who need closing agreements shared with other parties.
Municipal issuers that want the IRS to communicate directly with their bond counsel, underwriting firms, bond trustees, or conduit borrowers.

4. Who Is Exempt / Not Required to File?

Because Form 15094 is an audit-specific disclosure document for municipal bonds, large segments of taxpayers and organizations do not use it:

General Individual and Business Taxpayers: Everyday citizens, partnerships, and commercial corporations do not use Form 15094. General taxpayers seeking to authorize tax disclosures use Form 8821 instead.
Issuers with Fully Compliant Bonds: Municipalities whose bond issues are not selected for an IRS examination or voluntary closing agreement have no reason to file this form.
Issuers Relying Solely on Form 2848: If an issuer only wants its appointed attorney or CPA to represent them before the IRS, Form 2848 (Power of Attorney) is used. However, Form 15094 is still required if the IRS must share records with separate third parties, such as the conduit borrower or trustee.
Commercial Corporate Debt Issuers: Private companies issuing taxable corporate debt operate outside municipal bond regulations and do not use TEB forms.

5. When to File: Deadlines and Frequency

Form 15094 is an event-based document executed on an as-needed basis during an active audit or closing agreement negotiation. It is not an annual recurring filing.

The form is subject to a strict federal regulatory deadline known as the 120-day rule. Under Treasury Regulation Section 301.6103(c)-1, a disclosure consent must be received by the IRS within 120 calendar days from the date it was signed and dated by the taxpayer. If the IRS receives Form 15094 on day 121 or later, the consent is legally void, and the IRS cannot disclose any information until a newly executed form is submitted. Once accepted, the consent remains effective for the specific tax periods and bond issues listed until the matter is resolved or revoked in writing.

6. Where and How to File

Form 15094 is an administrative examination transmittal and cannot be filed through retail tax preparation software. It must be delivered directly to the IRS Tax Exempt Bonds personnel handling your file:

Direct Delivery to the Examiner: Deliver the completed, signed Form 15094 directly to the assigned TEB revenue agent or tax law specialist handling your audit or VCAP request.
Submission Channels: The form is typically transmitted via secure encrypted email, secure facsimile, or tracked commercial mail directly to the examiner.
Closing Agreement Packages: When executed in connection with a closing agreement transmittal (Letter 1595), mail the original physical copy to the designated IRS address as per instructions provided in your closing correspondence.
Verification of Authority: Ensure the form is signed by an authorized public official who possesses statutory legal authority to bind the governmental issuer.

7. Step-by-Step Instructions to Fill Form 15094

Form 15094 is a concise legal authorization document. It identifies the governmental bond issuer, details the specific bond issue under review, designates the third-party recipient, and specifies the scope of disclosure. The table below outlines its primary sections.

Section	Field Title	Required Information & Standards
Part I	Issuer Details	Legal name of the municipal issuer, Employer Identification Number (EIN), and official address.
Part II	Bond Identification	Exact legal bond issue name, issue date, CUSIP numbers, Form 8038 series number, and TEB report number.
Part III	Designated Recipient	Name of third-party individual or firm (conduit borrower, trustee, counsel), address, phone, and fax.
Part IV	Scope of Disclosure	Specific return information authorized for release (audit findings, closing agreements, transmittal letters).
Part V	Execution Block	Signature of authorized public official, date (starts 120-day clock), title, and direct phone number.

Part 1: Identifying the Governmental Issuer

Enter the complete registered legal name of the state, city, county, or municipal authority that issued the bonds. Enter the issuer’s nine-digit Employer Identification Number (EIN) and primary administrative address. Ensure the name matches the original information return (Form 8038 series) filed when the debt was issued.

Part 2: Bond Issue Identification

To ensure disclosure is restricted strictly to the debt under examination, you must provide precise bond identification data:

Name of Bond Issue: Enter the exact formal title of the bond issue as stated in the bond indenture and official statement.
Issue Date and CUSIP: Provide the original issuance date and all applicable CUSIP numbers for the bonds.
Form and Report Number: Enter the original information return number (such as Form 8038, Form 8038-G, or Form 8038-CP) and the specific IRS TEB Report Number assigned to the examination or VCAP case.

Part 3: Identifying the Designated Third-Party Recipient

Identify the third party authorized to receive your confidential tax information. Enter the individual’s full name, their professional organization or firm (such as the conduit hospital, law firm, or trust bank), business address, telephone number, and secure fax number. The IRS will only disclose records to the specific parties named in this block.

Part 4: Defining the Scope of Authorized Disclosure

Treasury regulations prohibit open-ended, vague disclosures. You must explicitly define what information the IRS is permitted to share. Common authorized disclosures include:

Discussion of audit issues and examination workpapers.
Transmittal of Notice of Proposed Issue (Form 5701-TEB) and Explanation of Items (Form 886-A).
Draft closing agreements and settlement calculations under the VCAP program.
Final executed closing transmittal letters (such as Letter 1595-D and Letter 937).

Part 5: Execution and Date (The 120-Day Rule)

An authorized public official—such as a mayor, city finance director, county treasurer, or board chairperson—must sign and date the form, printing their title and daytime phone number. Ensure the form is delivered to the IRS immediately after signing, as the date entered initiates the strict 120-day statutory validity window under Treasury Regulation Section 301.6103(c)-1.

8. Required Documents and Information Needed Before Filling

Before completing Form 15094, assemble the following public finance and audit files:

The original Form 8038, 8038-G, or 8038-CP information return filed at the time of bond issuance.
The trust indenture, loan agreement, or official statement confirming the formal bond title, CUSIP numbers, and issuance date.
IRS audit correspondence (such as Letter 1595, Letter 1595-D, or initial contact notices) displaying the assigned TEB Report Number.
Full legal contact details for the designated third party (conduit borrower, bond counsel, or financial advisor).
Documentation substantiating the signer’s authority to act on behalf of the governmental bond issuer.

9. Common Mistakes to Avoid

Errors on Form 15094 can stall audit negotiations and delay closing agreements. Watch out for these frequent mistakes:

Violating the 120-Day Rule: Submitting Form 15094 more than 120 calendar days after the execution date renders the form legally void under federal regulations, forcing the issuer to re-sign and re-submit.
Confusing Form 15094 with Form 2848: Form 15094 is a disclosure consent only. It allows the IRS to share information, but it does not authorize the third party to advocate, negotiate, or legally represent the issuer before the IRS. Legal representation requires Form 2848.
Providing an Overly Broad Scope: Authorizing disclosure of “all tax records” violates Treasury regulations. The scope must be restricted to the specific bond issue and tax periods under examination.
Unauthorized Signatures: Having bond counsel or an outside financial advisor sign Form 15094 on behalf of the issuer is invalid. The form must be executed by an authorized officer of the governmental issuer.
Mismatched Bond Identification: Omitting CUSIP numbers or using an informal project name that does not match the original Form 8038 will cause the IRS to reject the disclosure consent.

10. Penalties for Non-Filing or Errors

Because Form 15094 is a voluntary disclosure authorization, there are no direct fines or tax penalties for choosing not to file it. However, the operational and procedural consequences of omitting or mishandling the form are severe:

Complete Communication Freeze: Without a valid Form 15094, IRS examiners are legally barred from speaking with conduit borrowers, financial advisors, or trustees, halting multi-party settlement discussions.
Delays in Closing Agreement Finalization: Failure to provide Form 15094 when required under Letter 1595 prevents the IRS from issuing final closing transmittal letters, delaying resolution of noncompliance.
Risk of Adverse Audit Determinations: If communication barriers prevent timely resolution of bond violations, the IRS may close the audit as unagreed, threatening the tax-exempt status of the bonds.
Federal Criminal and Civil Liabilities for Unauthorized Disclosure: If IRS personnel disclose return information to third parties without a valid Form 15094, they face federal felony charges under IRC Section 7213 and civil liability under IRC Section 7431.

11. Related Forms or Schedules

Form 15094 operates within a specialized collection of IRS tax-exempt bond compliance and disclosure forms:

Form 8821: Tax Information Authorization (the general IRS disclosure form used for non-TEB matters).
Form 2848: Power of Attorney and Declaration of Representative (used to appoint legal representation).
Form 8038 / Form 8038-G: Information Returns for Tax-Exempt Bonds.
Form 8038-CP: Return for Credit Payments to Issuers of Qualified Bonds.
Form 14429: Tax Exempt Bonds Voluntary Closing Agreement Program Request.
Form 5701-TEB: Notice of Proposed Issue.
Form 886-A: Explanation of Items (audit report).
IRS Letter 1595 / Letter 1595-D: TEB Closing Agreement Transmittal Letters.

12. Frequently Asked Questions (FAQs)

1. How does Form 15094 differ from Form 2848 (Power of Attorney)?

Form 15094 is strictly a disclosure consent under IRC Section 6103(c); it allows the IRS to share information with a third party but gives that party no legal power to represent the issuer. Form 2848 authorizes an attorney, CPA, or enrolled agent to represent the issuer, negotiate with the IRS, and execute legal agreements.

2. Can a conduit borrower sign Form 15094?

No. The conduit borrower is a third party in the eyes of federal tax law. Form 15094 must be signed by an authorized official of the governmental bond issuer (the entity that issued the bonds and filed Form 8038).

3. What is the 120-day rule on Form 15094?

Under Treasury Regulation Section 301.6103(c)-1, the IRS must receive Form 15094 within 120 calendar days from the date it was signed by the issuer. If received after 120 days, the form is legally invalid, and the IRS cannot share information until a new form is executed.

4. Why does the IRS need Form 15094 if our bond counsel already filed Form 2848?

Form 2848 only authorizes the IRS to disclose information to the specific attorneys named on that power of attorney. If the IRS must also send closing agreements, audit reports, or settlement terms to the conduit borrower, financial advisor, or bond trustee, Form 15094 is required to authorize those separate third-party disclosures.

5. Can an issuer revoke Form 15094 after submitting it?

Yes. An issuer can revoke Form 15094 at any time by sending a signed written notice of revocation directly to the assigned IRS Tax Exempt Bonds examiner handling the case.

6. Can Form 15094 be submitted electronically?

Yes. While Form 15094 must be executed with a valid signature, it is routinely transmitted to the assigned TEB revenue agent or specialist via secure encrypted email or secure facsimile during an active audit or VCAP review.

13. Conclusion: Key Takeaways

IRS Form 15094 is an essential administrative tool that bridges public finance reality with strict federal tax privacy laws. By executing this disclosure consent within the mandatory 120-day statutory window, municipal bond issuers empower the IRS to communicate openly with conduit borrowers, bond counsel, trustees, and financial advisors.

Because municipal bond audits and voluntary closing agreements involve complex multi-party negotiations, public finance officials should work closely with their bond counsel to ensure Form 15094 is accurately prepared, properly scoped, and delivered promptly to the assigned IRS examination team.

IRS Form 15094 Guide: Consent to Disclose Tax Information