Hayworth Bill Prohibits Sharing of Tax Information

Hayworth Bill Prohibits Sharing of Tax Information

Bill would also require written consent for a tax preparation firm to send taxpayer information to overseas preparers

Responding to public outrage, Congressman J.D. Hayworth today introduced legislation to protect taxpayer information from being shared by tax preparation firms. The Taxpayer Information Protection and Privacy Act, or TIPPA, would bar tax preparation firms from sharing any taxpayer information. Currently, tax prep firms are allowed to share their information with subsidiaries if taxpayers sign a waiver. These firms then use the information to market other financial products. During questioning today by Hayworth in the Ways and Means Committee, IRS Commissioner Mark Everson said a case could be made for what Hayworth is trying to accomplish.

"My constituents were outraged to learn that the IRS was considering allowing tax preparation firm to share their tax information with third parties and I heard from them loud and clear during my town hall meetings," said Hayworth. "Americans want their tax information to remain private and this bill responds to their concerns."

The bill would also require that these firms get taxpayer permission to have their returns done by preparers based in other countries, a regulatory change now under consideration by the IRS.

"Every American should have the right to know who is preparing their tax return and where their information is going," said Hayworth. "Requiring taxpayer consent before sending a return overseas for preparation is only common sense when dealing with such sensitive information."

http://hayworth.house.gov/cgi-data/news/files/374.shtml