Your tax return is for sale?!

[Lebenz]

Your tax files for sale? IRS says go for it
Kathleen Pender

Thursday, March 9, 2006

The Internal Revenue Service has proposed a new rule that would let tax preparers sell or share a client's tax-return information with third parties, as long as they got the client's consent.

Three consumer organizations on Wednesday called the proposal shocking and urged the IRS to drop it.

They fear that many taxpayers could be rushed or duped into signing the consent form when they are signing their tax returns and related documents. They could end up losing control over financial data they wouldn't want their closest friends or family to see, much less outside marketing and database firms.

"If you have someone doing the paper shuffle -- sign here, sign here, sign here -- there is tremendous opportunity for mischief," says Ed Mierzwinski, consumer program director with the U.S. Public Interest Research Group.

The proposal is part of a larger plan for overhauling the decades-old section of the IRS code that regulates how tax preparers can use and disclose confidential taxpayer information.

A hearing on the overall proposal is scheduled for April 4.

Current law generally prohibits tax preparers from using a client's financial information for anything other than completing the tax return. However, preparers can use this information to sell "currently offered" products or services, such as refund anticipation loans and investment products, if they obtain the customer's consent. They can also share this sensitive information with an "affiliated group," again with consent.

The proposed regulations would let tax preparers share return information with nonaffiliated groups as well, with the customer's OK

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/03/09/BUGEAHKOC034.DTL

[boneheaddoctor]

don't like that idea one bit........

[Maroon 300D]

Ugh.

I wonder if anyone other than those who want to send us junk mail thinks this is a good idea.

[mzsmbs]

yeepee.. NOT.. wth is going on here? going to hell in a bucket fast..

[el presidente]

Our tax returns basically have every piece of senstive information on them, from SSNs to employment information to investment and bank account specifics....not to mention names of children, ages and your exact financial condition.

This is a REALLY BAD idea.

[el presidente]

Ugly scenario #1:

You purchase a copy of Turbo Tax to prepare your return for filing. Some small print somewhere in a useage/licensing statement advises that by default Turbo Tax, Inc. is the actual recorded "preparer" of your tax documents.

As you type all of your sensitive financial information into your computer, a tattle tale program is executed sending all your data to Turbo Tax, Inc. Since you clicked "yes" on the useage and licensing agreement, they can now turn around and sell, to anyone, all of your confidential specifics.

Your information is sold to XYZ Data Corp., and within months is sold and re-sold a hundred times.

Next, a collection agency or collection attorney gets his hands on your file (oops! $2,000 is withdrawn from your checking account). Turns out your information got mixed up with another guy with the same name and similar DOB or SSN and now you're got an uphill battle on your hands trying to get your $2K back, clean up your credit file and clear your name.

No thanks. Keep the Genie in the bottle as much as possible.

[el presidente]

Ugly scenario #2:

Identity theives now have EVERYTHING they need to make our lives completely miserable....all at their fingertips.

[Kuan]

Originally Posted by el presidente

Ugly scenario #2:

Identity theives now have EVERYTHING they need to make our lives completely miserable....all at their fingertips.

Oh but it's secure!