Your tax files for sale? IRS says go for it

[Newsjock]

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

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.

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

... The IRS, with a straight face, says the existing prohibitions against sharing confidential data with outside parties "restrict the ability of taxpayers to control and direct the use of their own tax return information as they see fit. The proposed regulations adopt an approach that ensures taxpayers are provided with a meaningful opportunity to consent to the use and disclosure of their tax return information. Accordingly, the proposed rules revoke the affiliated-group and currently offered restrictions."

more

[wakeme2008]

1. And they will hand you 5 pieces of small typed paper to sign

of which on small paragraph will be the consent. the rest filler to hide from you what you are signing. :grr:

[WillParkinson]

2. Nope, not correct

They'll hide a secondary signature spot that will say "sign here if you do not want us to use your information" and it'll automatically default to Yup.

[Mithras61]

3. What a load of crap!

The IRS, with a straight face, says the existing prohibitions against sharing confidential data with outside parties "restrict the ability of taxpayers to control and direct the use of their own tax return information as they see fit. The proposed regulations adopt an approach that ensures taxpayers are provided with a meaningful opportunity to consent to the use and disclosure of their tax return information. Accordingly, the proposed rules revoke the affiliated-group and currently offered restrictions."

What a load!

If I want to share the information, I can do so (IRS instructions even tell you to keep a copy for your records!). I don't need the involvement of a third party to share my tax information with those I deem suitable.

[NYC]

4. You can photocopy it, and hand it out on the street corner, if you want.

You are not restricted in any way from sharing your personal tax information.

Allowing your tax preparer to "sell" your information would be just plain stupid. Which lobbyist came up with this idea?

And don't forget that some tax preparation has been outsourced to India.

[goforit]

5. OMG!!!!......OUR COUNTRY and LAWS are being runneth over!!!

HELP!!!

SOS!!!!!

[denverbill]

6. I'll really have to watch Turbo-tax online now.

God only knows where they will hide this option.

[Divernan]

7. So how much did they pay Bush/GOP for this goody?

Truly outrageous.

[NVMojo]

8. when is the Bush administration going to be selling US citizens?

I am imagining that is next ...

[MisterP]

9. remember the overblown hoo-hoo in the 90s about "undoing the IRS's abuses"

by which they meant, of course, noncollection for the rich (plus extra loopholes) and outsourcing, debt-collection thugs, and sales to ID thieves for the rest of us--and no way for agency capture to slow this down, 'coz that's the "real abuse."

[cpamomfromtexas]

10. FIRE ANY PREPARER THAT DOES THIS

I WOULD NEVER DO SUCH A THING, IT'S WRONG. I THINK YOUR RELATIONSHIP WITH YOUR CPA SHOULD BE LIKE THAT OF DR/PATIENT, OR LAWYER/CLIENT. IT SHOULD BE TOTALLY CONFIDENTIAL.

THAT'LL SHOW YOU TO DO BUSINESS WITH THOSE BIG ENTITIES LIKE H&R, LIBERTY, ETC.

[AnneD]

12. I always remember the line from Schindler's list

paraphrasing from memory here "you need 3 things in life...a good doctor, a forgiving priest, and a clever accountant. I've never had a use for the first 2." Thanks for going to bat for your clients...it is privileged info!

[OrangeCountyDemocrat]

11. I'm A CPA In California

I'm sending a letter to my clients indicating that we will NEVER give out their information to ANY 3rd party. It is private & confidential, between the taxpayer and us.

In a reality based world, I'd say something like this doesn't have a chance of being approved. Since we're not in such a world, however, I'd say it will probably go through.

[NVMojo]

13. Also from the Linebarger firm, they share similarities with Bush cronies:

snip...

Linebarger Goggan has also been accused of fee gouging. Most recently, in a letter-to-the-editor in Memphis.

Sept. 20 front-page headline said City Atty. Sara Hall had "salvaged" the city's contract with the Texas law firm of Linebarger, Goggan, Blair & Sampson to collect delinquent taxes.

According to your article, Hall went to Texas to cancel the contract, but ended up "negotiating" a $1.5 million reduction in fees, which would keep the contact in place.

According to figures finally released by Hall, Linebarger collected about $29 million in delinquent taxes from April 2004 to June 2005, and the city was charged about $5.6 million in collection fees -- about 20 percent. This averages about $400,000 a month.

Is John Wilder involved in any underhanded dealings with a firm whose record is spotty, at best? No one can say with any degree of certainty. But it seems clear that bribery, alleged RICO violations and fee gouging warrant a closer look at Wilder's involvement with this firm. Apparently, he doesn't remember much about his relationship with the firm (except they collected a $250,000 judgment for one of his clients) so we need to dig up some details and refresh his memory.

more...

http://www.southendgrounds.com/2005/week45/index.html

[NVMojo]

14. Linebarger firm involved in bribing scandal in 04

Lawyer admits bribing official": The San Antonio Express News reports here that:
A politically connected lawyer whose friends include prosecutors and elected officials admitted Thursday that he bribed a city councilman.

The plea deal all but clinched a federal prosecution of City Hall corruption.

Plea bargain documents described the lawyer, H. Jack Pytel, as a minor part of the legal case, which last month squeezed guilty pleas from its elected targets, former Councilmen Enrique "Kike" Martin and John Sanders.

The deal also called for the lawyer to testify against the remaining defendant, Juan Peña, an Edinburg attorney accused of bankrolling the bribes in order to win a city contract for his firm, the tax-collection monolith then known as Linebarger Goggan Blair Peña & Sampson.

http://www.texaslaw.blogspot.com/2004_09_01_texaslaw_archive.html

[superconnected]

15. so their excuse is

that some tax payers might want to share their data for the benefits it gives them.

Sounds like the, "some callers like phone solicitors for the opportunities they introduce" and the "some people like spam mail for the notifications they may be interested approach"

Basically empty.

The vast majority don't want to share their irs files, have phone solicitations, or get spam mail.

My guess is, some big businesses want this and influenced politicians and the US gov lower employees got handed down what they are to do - open peoples files up for corporate data. It will probably be given to banks, insurance cos, companies wanting you to buy things etc. And definitely the corrupt coporate entitity who decided they want this info.