US government agencies possess data that could be invaluable for evaluating public policy, but often may not be released publicly due to disclosure concerns. For instance, the Statistics of Income division (SOI) of the Internal Revenue Service releases an annual public use file of individual income tax returns that is invaluable to tax analysts in government agencies, nonprofit research organizations, and the private sector. However, SOI has taken increasingly aggressive measures to protect the data in the face of growing disclosure risks, such as a data intruder matching the anonymized public data with other public information available in nontax databases. In this paper, we describe our approach to generating a fully synthetic representation of the income tax data by using sequential Classification and Regression Trees and kernel density smoothing. This synthetic data file represents previously unreleased information useful for tax policy modeling. We also tested and evaluated the tradeoffs between data utility and disclosure risks of different parameterizations using a variety of validation metrics. The resulting synthetic data set has high utility, particularly for summary statistics and microsimulation, and low disclosure risk.