Murray Calls on IRS Commissioner to Halt Plan that Could Give Telemarketers Access to Taxpayers' Private Financial Data
Murray Calls on IRS Commissioner to Halt Plan that Could Give Telemarketers Access to Taxpayers' Private Financial Data
Murray Criticizes Proposed Changes That Would Allow Tax Preparers to Sell Tax Information to Third Parties
Murray: "The IRS should not be an accomplice in selling taxpayer information."
Thursday, April 27, 2006
(Washington, D.C.) - At a Senate hearing today, U.S. Senator Patty Murray (D-Wash) told the IRS Commissioner that she strongly opposes an IRS plan that would make it easier for tax preparers to sell taxpayers' private financial records to telemarketers and other third parties. She urged IRS Commissioner Mark Everson to re-examine the proposal and prohibit the sharing of taxpayer information.
"The IRS should not be an accomplice in selling taxpayer information," Murray told the IRS Commissioner. "Taxpayers deserve more privacy, not less."
"What consumer really wants to have their dinner interrupted by a telemarketer who's looking at a copy of their private tax return?" Murray asked. "I hope the IRS will take a fresh look at these regulations and provide an outright prohibition on this information being shared with anybody."
In March, the IRS proposed changes to its privacy policy that would modernize procedures for tax preparation firms to sell an individual's tax records to third parties. While a firm would need to get a taxpayer's signature, Murray noted that many Americans may not realize they are signing away their privacy rights.
"We know how this works," Murray said. "It is 4 p.m. on April 15th, you're signing the last piece of paper the tax preparer's put in front of you. You're signing everything as fast as you can."
Murray wrote to Everson on March 22nd to express her concerns. Today, Murray used her position as the top Democrat on the committee that oversees the IRS to question Commissioner Everson about the proposal. (The committee is the Senate Appropriations Subcommittee on the Transportation, Treasury, the Judiciary, and Housing and Urban Development)
MURRAY: Why you are providing any opportunity for tax preparers and their affiliates to use personal financial data to sell mortgages, mutual funds, IRA accounts, or life insurance? Don't taxpayers already have innumerable opportunities to shop for services like that without subjecting their personal tax returns to perusal by marketers?
EVERSON: What we are trying to do here is have a balanced approach. This piece of the law has been in effect for over 30 years, but the world has changed since that time. . . .I guess the better question is whose information is it? Is it the taxpayer's information or is it the government's information? We, at the IRS, as you know, don't share information with anybody, so it's a question of preparers . . . . [W]hat we're trying to do is provide a really clear protection . . . But we don't think, that under statue now, we could say: you aren't free to share your information with that preparer.
During the hearing, Murray also questioned Commissioner Everson about the agency's shortfalls in fairly collecting taxes, inaccurate assistance provided by the IRS to taxpayers, and a flawed plan to close taxpayer assistance centers.
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http://murray.senate.gov/news.cfm?id=254837