IRS to Allow Tax Preparers to Sell Your Info?

merkel writes "The Philadelphia Inquirer reports that the IRS has proposed rule changes allowing tax-return preparers, like H&R Block, to sell an individual's return information to marketers and data brokers. The proposed rule [PDF], which does contain some substantive protections for the processing of electronic returns, was published in the Federal Register on December 8, 2005. The official comment period has passed, but hearings will be held this month."

Comments

note to self--

[Tominva1045]

Note to self: re-read the EULA on Turbo Tax.

Internet Stalking 101

[eldavojohn]

Oh no, my information is going to be sold and the government is going to allow tax preparers to sell it!

*gasp*

Let's narrow our fears on something a little more worrisome regarding privacy and the United States Government.

Ever filled out census information? Because, if you have, your information is available to anyone via a number of sites. That's right, for as cheap as an $8-$10 fee, people can find out what income range you are in along with a variety of other facts about you. They can also find out where you live for free!

I would normally thank god that I have a very non-unique name but if I enter my hometown and state, there I am listed five times with my address and parent's phone number. I was just a kid when I lived there! The best part is that if you click my name, they take the liberty to plug my address into Mapquest and Google Map bars in case you don't have the time to copy and paste it in there!

Go ahead, now try your name.

*cups his hand to his ear listening for the sound of a million nerds enshrouding themselves in tin foil*

I'm not worried about my personal information being sold to marketers ... you can send me all the marketing offers and SPAM you want. I am worried about someone with my same name trying to pass their credit card debt off on me. And I'm also worried about anyone I know who might have a problem with a stalker.

Do you know what your government is doing with your census data?

It isn't their information to sell.

[Aspirator]

It is the individual taxpayers information.

It was not acquired by the voluntary cooperation of the source.

If they want to sell it then they need permission from
the owner of the information, not the IRS's.

How evil is H&R Block?

[DysenteryInTheRanks]

This just adds to the many reasons NOT to use H&R Block:

• H&R Block successfully lobbied to severely curtail an innovative California program to assist poor people filling out their taxes (Source: This article in Mother Jones, a regular National Magazine Award-winner)

• H&R Block charges close to 500 percent for short-term tax refund loans. These loans are predominantely used by poor people claiming the Earned Income Tax Credit. (Source: NY Times Reporter David Cay Johnston's excellent book "Perfectly Legal" and this MSNBC article about the state of California suing H&R Block.)

• I have completed the full 1040 for four tax years, including accounting for capital losses and miscellaneous income and interest, and it's just NOT THAT HARD to do your own taxes.

It's already against the law to share your stuff

[Watchman_ds]

Once again, the media has overstated a story to attract attention to a non-issue. Regardless of what the IRS decides to do about tax preparers sharing tax information, this practice is already regulated by another law: the Gramm-Leach-Bliley Act(GLBA).

GLBA was passed in 1999 to modernize aspects of the banking industry. Title V prevents financial institutions from selling consumer data without consent from the consumer. Remember a couple of years ago every bank, credit card company, loan agency, and anyone else who touched your money flooded your mailbox with Privacy Policy notices and "opt-out" statements? That was GLBA.

The best part is that GLBA classifies tax preparers as financial institutions , so H&R Block must provide the same protections to your information that a bank would (or should).

The proposed IRS rule change under section 1 specifically cites GLBA and points out that this rule change has no impact on the GLBA requirements.

Sorry to all you privacy alarmists out there, but this "Privacy Bomb" for the IRS is a dud.