# Proposed IRS rule change: allow accountants to sell your tax return to data brokers **URL:** \ **Category:** Great Debates\ **Created:** [March 21, 2006, 7:13pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324 "2006-03-21T19:13:57Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Cervaise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cervaise/32/16693_2.png) [@Cervaise](https://boards.straightdope.com/u/Cervaise)\ **Post date:** [March 21, 2006, 7:13pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/1 "2006-03-21T19:13:57Z")
[From this article](http://seattletimes.nwsource.com/html/nationworld/2002878871_irs21.html) (no reg required in the short term): > [@](#): > > The Internal Revenue Service (IRS) is quietly moving to loosen the once-inviolable privacy of federal income-tax returns. If it succeeds, accountants and other tax-return preparers, for the first time, will be able to sell information from individual returns — or even entire returns — to marketers and data brokers. > > The possible change is raising alarm among consumer and privacy-rights advocates. It was included in a set of proposed rules that the Treasury Department and the IRS published in the Dec. 8 Federal Register, where the official notice labeled them “not a significant regulatory action.” More information in the linked article. Good idea? Bad idea? Looks to me like yet another quiet giveaway to the big data collation houses and private marketeers who have demonstrated (a) insatiable hunger for personal information and (b) zero morals about treating confidential information responsibly. I say bad idea, and I can’t imagine how anybody would think it’s a good idea. Hence, this debate thread. I’m also curious about why this hasn’t attracted more attention. Maybe this’ll be like the Dubai deal where it sails along under the radar for a while before exploding into a huge controversy. The article linked above is front page, above the fold, in the paper’s print edition. Feedback is welcome. ---
**Author:** ![zamboniracer](https://avatars.discourse-cdn.com/v4/letter/z/e9a140/32.png) [@zamboniracer](https://boards.straightdope.com/u/zamboniracer)\ **Post date:** [March 21, 2006, 9:01pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/2 "2006-03-21T21:01:57Z")
I prepare tax returns professionally, and I think this proposal is a terrible idea. How can I keep my client’s information confidential and sell it at the same time? It is like being a little bit pregnant. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 21, 2006, 10:25pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/3 "2006-03-21T22:25:34Z")
A very important phrase in that cite: "The proposed rules, which would become effective 30 days after a final version is published, would require a tax preparer to _obtain written consent before selling tax information."_ If you _want_ to let your preparer sell your info, why shouldn’t you be able to? ---
**Author:** ![Der\_Trihs](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/der_trihs/32/233_2.png) [@Der\_Trihs](https://boards.straightdope.com/u/Der_Trihs)\ **Post date:** [March 21, 2006, 11:11pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/4 "2006-03-21T23:11:56Z")
[QUOTE=DrDeth] A very important phrase in that cite: "The proposed rules, which would become effective 30 days after a final version is published, would require a tax preparer to _obtain written consent before selling tax information."_ [/QUOTE] You mean this part ? > [@](#): > > They say the requirement for signed consent would prove meaningless for many taxpayers, especially those hurriedly reviewing stacks of documents before a filing deadline. It would be pretty easy to trick or pressure someone into signing something like that, when they already have a shaky grasp of the matter and are trusting a professional. Plus, if this becomes law how long do you think it’ll be before that requirement is quietly erased or simply ignored ? A year ? Two ? ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 22, 2006, 4:28am UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/5 "2006-03-22T04:28:29Z")
[QUOTE=Der Trihs] You mean this part ?\*They say the requirement for signed consent would prove meaningless for many taxpayers, especially those hurriedly reviewing stacks of documents before a filing deadline \* [/QUOTE] Yep. First of all, getting someone to sign a document by hiding it amoung a 'stack of documents" is fraud. Next, you don’t sign that many documents when your taxes are done- you sign TWO- Federal and State (in states that have income taxes, so sometimes just one). And thirdly, if you’re a fool, well, no one can protect you. ---
**Author:** ![Digital\_Stimulus](https://avatars.discourse-cdn.com/v4/letter/d/aeb1de/32.png) [@Digital\_Stimulus](https://boards.straightdope.com/u/Digital_Stimulus)\ **Post date:** [March 22, 2006, 5:35am UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/6 "2006-03-22T05:35:24Z")
[QUOTE=DrDeth] If you _want_ to let your preparer sell your info, why shouldn’t you be able to? [/QUOTE] Just out of curiosity, since I don’t see any, what tangible benefits would this give to an individual? ---
**Author:** ![ouryL](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ouryl/32/6067_2.png) [@ouryL](https://boards.straightdope.com/u/ouryL)\ **Post date:** [March 22, 2006, 7:34am UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/7 "2006-03-22T07:34:06Z")
I doubt the Acct associztions will allow though. 😛 ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 22, 2006, 3:39pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/8 "2006-03-22T15:39:28Z")
[QUOTE=Digital Stimulus] Just out of curiosity, since I don’t see any, what tangible benefits would this give to an individual? [/QUOTE] A discount on the preparation fees, of course. ---
**Author:** ![Cervaise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cervaise/32/16693_2.png) [@Cervaise](https://boards.straightdope.com/u/Cervaise)\ **Post date:** [March 22, 2006, 4:02pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/9 "2006-03-22T16:02:31Z")
Given the massive potential for egregious abuse, balanced against the virtually nonexistent upside, how is this a good idea again? ---
**Author:** ![LionelHutz405](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lionelhutz405/32/536_2.png) [@LionelHutz405](https://boards.straightdope.com/u/LionelHutz405)\ **Post date:** [March 22, 2006, 4:22pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/10 "2006-03-22T16:22:01Z")
[QUOTE=Cervaise] Given the massive potential for egregious abuse, balanced against the virtually nonexistent upside, how is this a good idea again? [/QUOTE] What kind of abuse are you worried about? The potential is there, but I’m having a hard time thinking of a use of this data that would justify the costs associated with gathering and analyzing it. ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [March 22, 2006, 4:28pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/11 "2006-03-22T16:28:29Z")
I say we let the free market handle this. If taxpayers don’t want their data sold, they can just do their taxes themselves. OH! Loook! I get all my withholding back again this year! Lather, rinse, repeat, 180 million times. ---
**Author:** ![Digital\_Stimulus](https://avatars.discourse-cdn.com/v4/letter/d/aeb1de/32.png) [@Digital\_Stimulus](https://boards.straightdope.com/u/Digital_Stimulus)\ **Post date:** [March 22, 2006, 4:44pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/12 "2006-03-22T16:44:59Z")
[QUOTE=DrDeth] A discount on the preparation fees, of course. [/QUOTE] Ah, of course. Being somewhat paranoid about my personal information, it would never enter my mind. > [@LionelHutz405](#): > > What kind of abuse are you worried about? It’s not clear to me exactly what information would be made available, but I’ll run under the assumption that all of it would be. Think about that; it’s not too difficult to come up with something. Medical expenses? Suddenly, any medical condition you might have is public knowledge. Don’t underestimate the power of data mining. The worst thing about it, IMO, is that the more data is replicated, the more likely it is that it isn’t secure. Think identity theft and the innumerable incidents of hacking (innumerable because companies aren’t likely to report when they’ve been hacked; I seem to remember an estimate that less 10% of incidents are reported). ---
**Author:** ![Patty\_O\_Furniture](https://avatars.discourse-cdn.com/v4/letter/p/96bed5/32.png) [@Patty\_O\_Furniture](https://boards.straightdope.com/u/Patty_O_Furniture)\ **Post date:** [March 22, 2006, 4:46pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/13 "2006-03-22T16:46:07Z")
> [@](#): > > What kind of abuse are you worried about? Could this open the door for bounty hunters combing through mountains of tax returns looking for any little fudge factor and reporting them to the IRS? ---
**Author:** ![EEMan](https://avatars.discourse-cdn.com/v4/letter/e/a6a055/32.png) [@EEMan](https://boards.straightdope.com/u/EEMan)\ **Post date:** [March 22, 2006, 4:47pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/14 "2006-03-22T16:47:51Z")
[QUOTE=Patty O’Furniture] Could this open the door for bounty hunters combing through mountains of tax returns looking for any little fudge factor and reporting them to the IRS? [/QUOTE] The IRS doesn’t pay ‘bounties’ so I don’t know exactly why people would bother doing that. ---
**Author:** ![lowkey\_but\_high\_locks](https://avatars.discourse-cdn.com/v4/letter/l/59ef9b/32.png) [@lowkey\_but\_high\_locks](https://boards.straightdope.com/u/lowkey_but_high_locks)\ **Post date:** [March 22, 2006, 5:14pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/15 "2006-03-22T17:14:27Z")
Way too much potential for abuse here. Think insurance companies bribing paying tax companies to look for any excuse to raise the rates. Think ending up with more harassment phone calls/spam/bulk mail from marketeers. The only people this will really benefit are tax companies and data miners. ---
**Author:** ![lowkey\_but\_high\_locks](https://avatars.discourse-cdn.com/v4/letter/l/59ef9b/32.png) [@lowkey\_but\_high\_locks](https://boards.straightdope.com/u/lowkey_but_high_locks)\ **Post date:** [March 22, 2006, 5:16pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/16 "2006-03-22T17:16:28Z")
Oops we no have strike tags here it seems. To paraphrase Mr. Rogers “can you imagine strikeouts up there? I think you can”🙂 ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 22, 2006, 5:18pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/17 "2006-03-22T17:18:42Z")
[QUOTE=EEMan] The IRS doesn’t pay ‘bounties’ so I don’t know exactly why people would bother doing that. [/QUOTE] They do. They pay informants rewards. ---
**Author:** ![Patty\_O\_Furniture](https://avatars.discourse-cdn.com/v4/letter/p/96bed5/32.png) [@Patty\_O\_Furniture](https://boards.straightdope.com/u/Patty_O_Furniture)\ **Post date:** [March 22, 2006, 5:18pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/18 "2006-03-22T17:18:54Z")
[QUOTE=EEMan] The IRS doesn’t pay ‘bounties’ so I don’t know exactly why people would bother doing that. [/QUOTE] The IRS doesn’t sell tax returns either, right? ---
**Author:** ![UncleBeer](https://avatars.discourse-cdn.com/v4/letter/u/977dab/32.png) [@UncleBeer](https://boards.straightdope.com/u/UncleBeer)\ **Post date:** [March 22, 2006, 5:29pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/19 "2006-03-22T17:29:15Z")
[QUOTE=EEMan] The IRS doesn’t pay ‘bounties’ so I don’t know exactly why people would bother doing that. [/QUOTE] Really? They’ve got a whole section of code describing the procedures for rewarding informants. [http://www.irs.gov/irm/part25/ch02s02.html](http://www.irs.gov/irm/part25/ch02s02.html) And [Form 211](http://www.irs.gov/pub/irs-pdf/f211.pdf) is available for one to request a reward. ---
**Author:** ![EEMan](https://avatars.discourse-cdn.com/v4/letter/e/a6a055/32.png) [@EEMan](https://boards.straightdope.com/u/EEMan)\ **Post date:** [March 22, 2006, 5:41pm UTC](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324/20 "2006-03-22T17:41:04Z")
Thank you all, I was obviously mistaken. [QUOTE=UncleBeer] Really? They’ve got a whole section of code describing the procedures for rewarding informants. [http://www.irs.gov/irm/part25/ch02s02.html](http://www.irs.gov/irm/part25/ch02s02.html) And [Form 211](http://www.irs.gov/pub/irs-pdf/f211.pdf) is available for one to request a reward. [/QUOTE] According to IRS rules, it would be a pain in the backside to submit multiple forms, and the pay out would be dependant on what an audit turned up; but you are correct, it does seem they pay a ‘bounty’ of sorts. [Next page](https://boards.straightdope.com/t/proposed-irs-rule-change-allow-accountants-to-sell-your-tax-return-to-data-brokers/349324.md?page=2)