The IRS is working to change some rules on what tax preparers can do with your returns and how we allow for disclosures and consent.
I've received several ominous emails from the one or two liberals in the family warning of yet another Bush sell out, but is it? Judge for yourself and read the proposed changes. I'll give you a cookie if you can get all the way through it (lawyers excepted). I admit to failing miserably, so the below assessment might contain information that is later proven false.
There will continue to be consent required before the tax prep people can sell your data to a third party. If they wish to sell data to overseas companies, they'll need express written consent. What I'm not clear about is whether they can use your data for their own in-house purposes, but it appears they can without consent. If you do taxes yourself on the paper forms nobody can access it, same as before.
Not so ominous as long as I'm reading it correctly. Heck, why not make it a crime to sell our data to third parties without first giving us a cut? No way Block or others should be able to sell my tax return without my consent and without me getting my cut. Make them install a 'bid' button on the forms to allow ALL the marketing companies to bid for our data after filing. Surely the luster would be lost.
Here's my main concern. I've used tax software on the PC for years, but only lately began using e-file. There were several electronic hoops to jump through, and it might be easy to miss a consent box if you rush. Still, it shouldn't be made easy to mess it up--after all, they don't forgive us if we mess up the return. Nobody should have their return end up in the hands of Spam-Is-Us, Inc. or timesharesfromhell.com if they don't want it there.
Come to think of it, the Fair Tax is sounding better and better.
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