WASHINGTON (AP) - Should tax preparers, even with taxpayers' permission, be allowed to sell or disclose information that customers put on their returns?
New privacy regulations issued by the IRS, explored at an IRS hearing Tuesday, have consumer groups, tax professionals and state governments asking that question and urging tax collectors to tighten the rules.
The proposed changes would adjust regulations that require tax professionals to get permission before using or disclosing information on customers' tax returns.
Several consumer groups interpret the current rules to restrict outside companies from using taxpayers' personal data for marketing purposes. But the IRS says the regulation never imposed such a restriction, and that companies have always had the power to disclose information if a taxpayer agrees.
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