WASHINGTON, D.C.– Representative Edward J. Markey (D-MA) co-chair of the House of Representatives Privacy Caucus released the following statement in response to press reports about a possible change in tax regulations that would allow tax preparers to sell information from returns:

“Come April, Americans have no choice but to submit, along with their taxes, a great deal of personal information to the Internal Revenue Service (IRS).  Phone numbers, social security numbers, salary, investment income, childcare information, mortgage interest payments, and medical expense information all pass through the hands of government workers and tax preparers.  In the information age these identifiers are powerful keys to the medical files, bank accounts and family lives of millions of Americans.  During tax season taxpayers have no choice but to hand over these keys,” said Rep. Markey.

Markey continued, “Americans trust that the IRS will safeguard their personal lives – they expect that IRS oversight of tax preparation will protect them.  But recent reports of some changes to the tax regulations suggest that tax preparers could with consent sell information to anyone.  The IRS has suggested to my office that their regulations have been misinterpreted, and that the regulations do not significantly  expand the ability of tax preparers to disclose taxpayer information to others, and that the major challenge for the IRS was, and still is, ensuring that any consent is informed and not coerced.  I hope that the IRS moves quickly to clarify this matter.

“The potential for mischief in this area is infinite, especially if tax preparers see a new opportunity for a profit-making enterprise using tax payer data for purposes other than completing a full and accurate tax return.  The government is forcing this information to be divulged in the first place – it has a heightened responsibility, therefore, to ensure that it is not misused.”
 
The Internal Revenue Service (IRS) has hearing scheduled on April 4 for the vetting of these new tax regulations.

For more information on Rep. Markey’s fight to protect the privacy of consumer data check out: http://markey.house.gov/