IRS Proposes Changes That Would Allow Accountants To Sell Tax Return Information
Posted by Kraig Baker
The IRS has changed a rule that permits tax-return preparers to sell information from individual returns to marketers and data brokers. The proposed rules do require that taxpayers "opt-in" before the tax information could be sold. Does anyone really believe that it will be difficult to get taxpayers to "opt in?" Not only to most taxpayers sign whatever their tax preparers put in front of them, but the slippery recent history of certain large commercial tax preparers suggest that it won't be difficult to get such opt-in consent. I expect that there will be a firestorm about these changes and that the IRS will back away from this change in the next month or so. Full story here.
Wow, this make me feel real secure!
The IRS announced proposed regulations designed to safeguard taxpayer privacy last December (http://www.irs.gov/newsroom/article/0,,id=151368,00.html) after prodding by Rep. Ed Markey (D-Mass).
When hearing that the proposed regulations would allow the sale of taxpayer information, I contacted Rep. Markey's office. They told me that the IRS did not intend that result. For more info see:
http://markey.house.gov/index.php?option=content&task=view&id=1339&Itemid=125.
There will be a hearing on the proposed regulations on April 4, 2006. The regs will change one thing for 1,000,000 US taxpayers: they must given permission before their tax returns are sent overseas; today that is not the case. For more information, go to www.copanion.com.