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[IP] more on Tax Data for Sale?





Begin forwarded message:

From: Chris Hoofnagle <hoofnagle@xxxxxxxx>
Date: March 22, 2006 11:39:21 AM EST
To: EPIC_IDOF@xxxxxxxxxxxxxxxx
Subject: Re: [EPIC_IDOF] Tax Data for Sale?

At 08:07 AM 3/22/2006, Bruce Schneier wrote:
http://rss.slashdot.org/slashdot/eqWf?m=4398
"The Philadelphia Inquirer reports that the IRS has proposed rule changes
allowing tax-return preparers, like H&R Block, to sell an individual's
return information to marketers and data brokers. The proposed rule [PDF],
which does contain some substantive protections for the processing of
electronic returns, was published in the Federal Register on December 8, 2005. The official comment period has passed, but hearings will be held this
month."

Well, kind of. Under the new rule, disclosure of tax return information is broadened if the customer gives her affirmative consent. If consent is given, the FULL RETURN can be given to other entities for marketing purposes, and the tax preparer does not have to even ensure that these other entities are legit or following the preparer's privacy policy.

I'm basically telling people not to use storefront tax preparation at all, because if they don't trick you into selling your data, they'll use it themselves to market bogus refund anticipation loans. Unfortunately, even the tax preparation software tries to market that crap to you now.

C

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