Notice2025-22853
Privacy Act of 1974; Matching Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 16, 2025
Issuing agencies
Veterans Affairs Department
Abstract
Under this re-established matching program, the Internal Revenue Service (IRS) will disclose return information, relating to unearned income, to the Department of Veterans Affairs (VA), Veterans Benefits Administration (VBA), for the Disclosure of Information to Federal, State and Local Agencies (DIFSLA). The purpose of this matching program is to make available to VBA certain return information needed to determine eligibility for, and amount of benefits for, VBA applicants and beneficiaries of needs-based benefits, and to adjust income-dependent benefit payments, as prescribed by law. Currently, the most cost-effective and efficient way to verify the annual income of applicants and recipients of these benefits is through a computer match.
Full Text
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<title>Federal Register, Volume 90 Issue 239 (Tuesday, December 16, 2025)</title>
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[Federal Register Volume 90, Number 239 (Tuesday, December 16, 2025)]
[Notices]
[Pages 58375-58376]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22853]
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DEPARTMENT OF VETERANS AFFAIRS
Privacy Act of 1974; Matching Program
AGENCY: Department of Veterans Affairs (VA).
ACTION: Notice of a new matching program.
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SUMMARY: Under this re-established matching program, the Internal
Revenue Service (IRS) will disclose return information, relating to
unearned income, to the Department of Veterans Affairs (VA), Veterans
Benefits Administration (VBA), for the Disclosure of Information to
Federal, State and Local Agencies (DIFSLA). The purpose of this
matching program is to make available to VBA certain return information
needed to determine eligibility for, and amount of benefits for, VBA
applicants and beneficiaries of needs-based benefits, and to adjust
income-dependent benefit payments, as prescribed by law. Currently, the
most cost-effective and efficient way to verify the annual income of
applicants and recipients of these benefits is through a computer
match.
DATES: Comments on this matching program must be received no later than
January 15, 2026. If no public comment is received during the period
allowed for comment or unless otherwise published in the Federal
Register by VA, the new agreement will become effective a minimum of 30
days after the date of publication in the Federal Register. If VA
receives public comments, VA shall review the comments to determine
whether any changes to the notice are necessary. This matching program
will be valid for 18 months from the effective date of this notice.
ADDRESSES: Comments may be submitted through <a href="http://www.Regulations.gov">www.Regulations.gov</a> or
mailed to VA Privacy Service, 810 Vermont Avenue NW, (005X6F),
Washington, DC 20420. Comments should indicate that they are submitted
in response to IRS, DIFSLA matching program. Comments received will be
available at <a href="http://regulations.gov">regulations.gov</a> for public viewing, inspection or copies.
FOR FURTHER INFORMATION CONTACT: Bartolo A. Reyes, Management and
Program Analyst, Pension and Fiduciary Service (21P), Department of
Veterans Affairs, 810 Vermont Ave. NW, Washington, DC 20420, 202-461-
8394.
SUPPLEMENTARY INFORMATION: The matching program between VA and IRS
DIFSLA expires on December 31, 2025. VBA has a legal obligation to
reduce the amount of pension and of parents' dependency and indemnity
compensation by the amount of annual income received by the VBA
beneficiary. VA will use this information to verify the income
information submitted by beneficiaries in VA's needs-based benefit
programs and adjust VA benefit payments as prescribed by law. By
comparing the information received through the matching program between
VBA and IRS, VBA will be able to timely and accurately adjust benefit
amounts. The match information will help VBA minimize overpayments and
deter fraud and abuse. The legal authority to conduct this match is 38
U.S.C. 5106, which requires any Federal department or agency to provide
VA such information as VA requests for the purposes of determining
eligibility for benefits or verifying other information with respect to
payment of benefits. The VA records involved in the match are in
``Compensation, Pension, Education, and Vocational and Rehabilitation
and Employment Records--VA (58 VA 21/22/28),'' a system of records
which was first published at 41 FR 9294 (March 3, 1976), amended and
republished in its entirety at 86 FR 61858 (November 8, 2021). The IRS
records consist of information from the system records and will extract
return information related to unearned income of the VBA applicant or
beneficiary, and when applicable, the spouse of such individual's, from
the Information Return Master File (IRMF), Treasury/IRS 22.061, at 80
FR 54081-082 (September 8, 2015). In accordance with the Privacy Act, 5
U.S.C. 552a(o)(2) and (r), copies of the agreement are being sent to
both Houses of Congress and to the Office of Management and Budget.
This notice is provided in accordance with the provisions of Privacy
Act of 1974 as amended by Public Law 100-503.
Participating Agencies: Internal Revenue Service (IRS) and
Department of Veterans Affairs (VA).
Authority for Conducting the Matching Program: 26 U.S.C. 6103 and
38 U.S.C. 5106.
Purpose(s): To re-establish a matching program with IRS to provide
VBA with certain return information needed to determine eligibility for
and amount of benefits for VBA applicants and beneficiaries of needs-
based benefits and to adjust income-dependent benefit payments as
prescribed by law.
Categories of Individuals: Veterans and beneficiaries who apply for
VA income benefits.
Categories of Records: VBA will furnish the IRS with records in
accordance with the current IRS Publication 3373, DIFSLA Handbook. The
requests from VBA will include: The Social Security Number (SSN) and
name control (first four characters of the surname) for each individual
for whom unearned income information is requested. IRS will provide a
response record for each individual identified by VBA. The total number
of records will be equal to or greater than the number of records
submitted by VBA. In some instances, an individual may have more than
one record on file. When there is a match of individual SSN and name
control, IRS will disclose the following to VBA: Payee account number;
payee name and mailing address; payee Taxpayer Identification Number
(TIN); payer name and address; payer TIN; and income type and amount.
System(s) of Records: VBA records involved in this match are in
``VA Compensation, Pension, Education, and Vocational Rehabilitation
and Employment Records--VA'' (58VA21/22/28), a system of records that
was first published at 41 FR 9294 (March 3, 1976), amended and
republished in its entirety at 86 FR 61858 (November 8, 2021). IRS will
extract return information with respect to unearned income of the VBA
applicant or beneficiary, and when applicable, of such individual's
spouse from the Information Return Master File (IRMF), Treasury/IRS
22.061, as published at 80 FR 54081-082 (September 8, 2015).
[[Page 58376]]
Signing Authority
The Senior Agency Official for Privacy, or designee, approved this
document and authorized the undersigned to sign and submit the document
to the Office of the Federal Register for publication electronically as
an official document of the Department of Veterans Affairs. Merissa
Larson, Chief Privacy Officer and Chair of the Data Integrity Board,
Department of Veterans Affairs approved this document on September 4,
2025 for publication.
Dated: December 11, 2025.
Crystal Drakeford,
Government Information Specialist, VA Privacy Service, Office of
Compliance, Risk and Remediation, Office of Information and Technology,
Department of Veterans Affairs.
[FR Doc. 2025-22853 Filed 12-15-25; 8:45 am]
BILLING CODE P
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