The IRS wants to give your accountant the right to sell your tax info

PennPIRG ^ | April 4th, 2006 | Beth McConnell

[APRPEH]

Testimony of Beth McConnell Director, Pennsylvania Public Interest Group Education Fund

On behalf of United States Public Interest Research Group, Consumer Federation of America, National Consumer Law Center

Before the Internal Revenue Service Public Hearing, April 4th, 2006

Regarding Notice of Proposed Rulemaking Amendments to Section 7216 Regulations and Revenue Guidance 26 CFR Part 301 [REG-137243-02] RIN-1545-BA96 and Revenue Procedure 2005-93 [Notice 2005-93]

Good morning. My name is Beth McConnell, and I’m the director of the Pennsylvania Public Interest Research Group Education Fund (PennPIRG Education Fund). I am also offering comments today on behalf of U.S.PIRG, the National Consumer Law Center and the Consumer Federation of America.

Thank you for giving me the opportunity to present verbal testimony on a proposal by the Internal Revenue Service to amend Section 7216. We offered more detailed written comments to the IRS on March 8th, and appreciate your consideration of those remarks as well.

As you know, Section 7216 governs how tax preparers may use and disclose confidential taxpayer information. The IRS has heralded proposed changes to this section as improving privacy protections. Unfortunately, we do not agree. We believe the proposed rule significantly reduces overall privacy protections for taxpayers. We urge the IRS to revise its proposal to prohibit the use of a consumer’s tax return information for marketing of any ancillary services by tax preparers, their affiliates, or unaffiliated third parties.

[APRPEH]

this is a VERY BAD idea.

[Peach]

Whoa. What is this all about?

[Kolb]

WTF! Like we don't already have enough junk mail, phone solicitations and general scruitiny by prospective freeloaders.

[ARCADIA]

What are they going to sell that hasn't already been pilfered?

This sounds like a coverup for a crime. The IRS has perhaps already losts its data so they are directing our attention elsewhere.