Bush’s IRS Wants to Make Your Tax Returns Public
Bush’s IRS Wants to Make Your Tax Returns Public
A new article from the Philadelphia Inquirer has blown open the startling plans of the IRS to allow tax preparers for the first time to sell the tax returns of their customers.
The proposal came in a painfully technical tax regulation, which until now had attracted only a dozen public comments since it was announced in December. The proposal calls itself “not a significant regulatory action.” But the proposal is indeed significant, both for tax privacy and more broadly.
Until now, tax preparers could not sell tax returns to outside parties. Period. If they got taxpayer consent, they could use it for marketing, but only within their own corporate family.
The new proposal allows the tax preparers –- from your local accountant to giants such as H&R Block –- to get your signature and then give or sell the full tax return to data brokers, to your boss, to anyone. And there are absolutely no restrictions about what recipients do with the returns. The rule lets recipients post the full return to the Internet if they want.
Here are three reasons (you can think of others) why this proposal is wrong:
– First, taxpayer “consent†here is fake. Sometimes my wife and I have used tax prep services. Once the final papers are ready, they come to us with little sticky tabs next to each signature line. It’s usually about April 14th and late at night, and we sign where they tell us. Under the new proposal, they just add one sticky tab, and taxpayers have now “consented†to having their tax returns sold to anyone.
– Second, the proposal is all risk and no reward for consumers. The risk is of identity theft and more – unknown people can get your full tax return. The reward to consumers is zero.
– Third, this proposal shows once again that the administration doesn’t “get” privacy. Warrantless wiretaps, “total information awareness,” and now sale of your tax returns. There is still no White House official whose job is to screen proposals and protect privacy (a role I played in the Clinton Administration). There should be.
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65 Responses to “Bush’s IRS Wants to Make Your Tax Returns Public”
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republicans = big government
March 23rd, 2006 at 11:00 amWhat a surprise! I hope this doesn’t apply to software companies like TurboTax.
March 23rd, 2006 at 11:03 amThe biggest beneficiaries, aside from H&R Block and the other sellers, will be the credit agencies, like EquiFax. Being able to merge your tax data in with your credit history will give them a valuable commodity. Once your tax returns are in the public domain, the uses they can be put to are limitless.
March 23rd, 2006 at 11:03 amum, don’t they have our Social Security numbers and other personal info on them? government-sponsored identity theft? well, it makes sense in one way… since the new credit laws came into effect, ID theft is profitable for Bush’s corporate supporters… it works like this: someone steals your identity and runs up huge credit card bills, then the new laws make it so you have to pay the companies back even though they weren’t your charges…
March 23rd, 2006 at 11:03 am# 1 - no, Republicans = Big Business … this does NOTHING but help their friends at tax prep companies like H&R
March 23rd, 2006 at 11:04 amThird, this proposal shows once again that the administration doesn’t “get†privacy. Warrantless wiretaps, “total information awareness,†and now sale of your tax returns.
He’s just paying off campaign contributors. Who will be the main purchasers of this info? Financial institutions, some of Bush’s biggest supporters.
March 23rd, 2006 at 11:06 amI read EVERYTHING I sign. However, I have had clients who simply sign where I tell them to. I always have requeted they review information prior to signing as whatever has YOUR signature, as opposed to a forgery, is legally binding on you. I cannot count how many times I have been told by clients they trust me so they do not need to read whatever it is that I am putting in fromt of them.
In God we trust - all others pay cash!!
March 23rd, 2006 at 11:06 amThis Seattle Times article has contact information for the public to comment. The official comment period is over, but they are still accepting comments. Every single one of us needs to write in today! (via Left in the West)
March 23rd, 2006 at 11:09 am#7 - I’ve had the same experience, Jules. I work in a law office, and I’m constantly surprised at the number of people who will sign anything you put under their nose. We’re not in the business of screwing anyone over, but what if we were?
Selling our tax info cannot be allowed to happen. Everything anyone would need to steal our identities is on those documents. The IRS would literally be facilitating the theft of our identities.
March 23rd, 2006 at 11:12 amHow are they selling this as a good idea? Are they even bothering to try to explain themselves anymore? No matter how stupid and misguided and false the reasoning, I would like to know what it is.
March 23rd, 2006 at 11:15 am#5 that analogy has already been WELL established…this move, to me, once again goes against their mantra of smaller government…to me liberals believe in a “bigger” government to help ensure equality to all, where as republicans use big government to ensure inequality and a self serving “status quo”
March 23rd, 2006 at 11:25 amI know, just don’t file a return.
March 23rd, 2006 at 11:25 amThe criminal murdering thugs in junior’s administration do nothing for the taxpayers that feed their fat asses.
They take the taxpayer money and give it to their corporate hog friends that kick-back campaign donations.
They commit Federal Crimes and should be treated accordingly.
They should at least make it an “Opt In” type of thing where they need to give you a separate sheet saying you are OK with them selling your data. An “Opt-out” is a cop out cause too many Americans are bozo’s and won’t read the paper telling them it’s an Opt out. I know. It’s happened to me at Well Fargo. Those bastards where charging me for all kinds of shit I never asked for and only found out about months later when my account was suspiciously low. Like I wanted a $250 travel insurance plan I never signed up for. I complained, they told me where I said it was OK to bill me for stuff without my signature. They were very nice about removing the charge and surprisingly perplexed when I closed my accout. Dumb shits.
March 23rd, 2006 at 11:26 am> > > > AIN’T IT THETRUTH!!!
> > > >
> > > > Joe Smith started the day early having set his alarm clock (MADE
>IN
> > JAPAN) for 6am. While his coffeepot (MADE IN CHINA) was perking, he
>shaved
> > with his electric razor (MADE IN HONG KONG). He put on a dress shirt
>(MADE
> > IN SRI LANKA), designer jeans (MADE IN SINGAPORE) , a light jacket
>(MADE
>IN
> > VIET NAM) and tennis shoes (MADE IN KOREA). After cooking his
>breakfast in
> > his new electric skillet (MADE IN INDIA) he sat down with his
>calculator
> > (MADE IN MEXICO) to see how much he could spend today. After setting
>his
> > watch (MADE IN TAIWAN) to the radio (MADE IN INDIA) he got in his car
>(MADE
> > IN GERMANY) filled it with GAS from Saudi Arabia and continued his
>search
> > for a good paying AMERICAN JOB. At the end of yet another discouraging
>and
> > fruitless day checking his Computer (Made In Malaysia), Joe decided to
>relax
> > for a while. He put on his sandals (MADE IN BRAZIL) poured himself a
>glass
> > of wine (MADE IN FRANCE) and turned on his TV (MADE IN INDONESIA), and
>then
> > wondered why he can’t find a good paying job in AMERICA……
> > > >
> > > > Keep this circulating
not on topic but…………….
March 23rd, 2006 at 11:27 amThe biggest beneficiaries, aside from H&R Block and the other sellers, will be the credit agencies, like EquiFax. Being able to merge your tax data in with your credit history will give them a valuable commodity. Once your tax returns are in the public domain, the uses they can be put to are limitless.
Comment by KnightErrant
As the middle class and poor continue downwards in their economic status a public posting of Bush’s “base” the “have mores” tax returns showing how well they are doing now that they have profited from the deaths of these peoples sons and daughters in neo con wars should be a wake call to many…
March 23rd, 2006 at 11:29 am#10 - They are selling it as “housecleaning.” They say they are simply streamlining the regulations.
March 23rd, 2006 at 11:31 am#7 - I’ve had the same experience, Jules. I work in a law office, and I’m constantly surprised at the number of people who will sign anything you put under their nose. We’re not in the business of screwing anyone over, but what if we were?
Comment by Zookeeper
Do you expect people to seriously read all the nonsense written in every contract or from 200 page insurance policy books to the use agreements that popup when you install software? That crap is so long and makes so little sense we would be doing nothing but reading reading reading crap that basically means nothing to us.
March 23rd, 2006 at 11:33 amLook for this new line to be added to the 1040 forms:
March 23rd, 2006 at 11:38 amMother’s Maiden Name:___________________
#12 hell yeah…no taxation without representation!!!!! i hardly make enough to survive as it is (why did i choose to go to college??)
March 23rd, 2006 at 11:43 am“hope this doesn’t apply to Turbo Tax”
Just finished my return in Turbo Tax. At the bottom of the printed form is a small blurb that reads…”yes (or no) you can share this information with others”. Or, something like that. The default selection in Turbo Tax was no. Those of you who go through a tax preparer better beware!
March 23rd, 2006 at 11:48 amAnother sop to another big business constiuent. After the bankruptcy bill and the Medicare drug giveaway, this is just another in a string of corporate welfare. How very socialist of them.
March 23rd, 2006 at 11:48 amSomething like the subject of this thread just makes me shake my head and wonder. How Far will it go before the sheeple awaken from their coma.
There must be 50 Ways To Dump The Dubya
March 23rd, 2006 at 11:55 amI am going back to doing my taxes the old way by printing out the forms and doing everything by hand.
Am I going to have a check the box on the form that I do not want the IRS to release my information?
Do you ever get the feeling that they do some of these things and sit back and laugh at the idiots who say “well if you don’t have anything to hide then why would this bother you?”
March 23rd, 2006 at 12:02 pmI wonder if Peter Swire was concerned about privacy when the Clinton Administration was improperly collecting FBI files on Republicans who were in the Bush and Reagan administrations. He was probably one of those criminals behind it.
http://www.cnn.com/US/9606/23/fbi.files/
March 23rd, 2006 at 12:04 pm#24 - what does that have to do with this administration attempting to allow the private information regarding private individuals to be SOLD to anyone who wants to buy it?
Nothing - another troll trying to divert attention!
March 23rd, 2006 at 12:06 pmThis must be the Bush Administrations way of simplifying the tax code. Simplifying it for big business that is. H&R Block etc. will make quite a bundle selling tax info to marketers, thieves, and others. Maybe soon the BA will allow the SSA to sell Social Security numbers to ease the deficit.
http://www.lcoliberal.blogspot.com
March 23rd, 2006 at 12:08 pmMost Ridilculous Story of the Day: Right Now on LCL
24 - troll. clueless troll.
Funny how those who are supposubly supporting liberty and freedom here coninually support the erosion of those very same freedoms by bushco. That means one thing - hypocritical trolls.
March 23rd, 2006 at 12:11 pmEXCELLENT ITEM, THANK YOU THINKPROGRESS
These days, in regards to Political Discourse, I’m kind of oriented toward the subject matters of Iraq, illegal wiretaps, and Ethics (both Congressional, and the Administration’s), but I’m glad to see this item; it’s both timely and important.
I particularly like the second and third pertinent points as outlined by Mr. Peter Swire:
2. This Regulatory change serves the American People not one bit (unless you count yourself a Person who is served by ’spying’ on Tax Returns, as opposed to a Person who is disserved by such a thing; which are a majority enough of the People to qualify as the American People).
and 3. This is typical of this Administration, which gives not a SQUAT about the American People, or anything that serves them, but cares only for itself (the Administration), and anything that serves it (which are things that, like the Administration itself, the American People are likewise fast not giving a SQUAT about: So say the polls. Things such as Defense Contractor profits for death in Iraq, illegal wiretaps for whatever reason, and the phony ‘Ethics’ found in a Congressional majority and it’s valued coconspirator, the Administration).
March 23rd, 2006 at 12:12 pm#17 - Gerald, I’m talking about divorce settlements, child custody arrangements, wills, real estate documents, etc. This shit is IMPORTANT to peoples everyday lives, and some of them don’t take the time to do more than scan the docs. I’ve seen true grief over child custody agreements (not written by this firm) that weren’t read properly. Personally, I’d hire an attorney to read and explain a contract for me, and I know how to read the stupid things. That stuff can seriously come back and bite you in the ass.
March 23rd, 2006 at 12:17 pmLet’s see. This administration, the most secretive in history, also the worst, want’s to know and sell all information about all the citizens. Interesting but not suprising as they sell us out to foreign power, create huge debt, sell off our parks and wilderness, pay corprate america to pollute us, gouge us and saddle us in paper work, ignore our will, turn us into a dictator controled country and march us all into camps. Yah! that sounds about right with this bunch, they can link up their spying info along with what the stupid sign off on and they won’t even need our blood type to finish us off… Welcome to Bubar’s america……Blessings
March 23rd, 2006 at 12:26 pmSo my SSN is the least of my problems. Here, have my kids’ SSN, my income information, have it all. All in the name of money. Here, have my daughter’s virginity, that’s next. Welcome to domestic terrorism.
March 23rd, 2006 at 12:33 pm“Freedom’s just another word for nothing left to lose…” Janis Joplin
I think she might have been on to something…
March 23rd, 2006 at 12:38 pmI agree this is a troubling issue which needs to be addressed. But also troubling is how liberals on this blog frame the issue as if they knew as fact the position of President Bush on the matter and his motivation when indeed on both counts you have absolutely no evidence to come to any intelligent conclution. Nor does the article mention the position of any one Republican let alone the party as a whole but somehow you all seem to know exactly what that position is. Speculation is not fact but you feed each others hate and paranoia and form opinions with precisely that.
March 23rd, 2006 at 12:43 pmYep!, Unbelievable, your right………Blessings
March 23rd, 2006 at 12:43 pmYep!, Unbelievable, your right………Blessings
Comment by Sharon Cox — March 23, 2006 @ 12:43 pm
Hi Sharon,
Haven’t seen you much lately. How are you?
March 23rd, 2006 at 12:44 pmMore of that SMALL GOVERNMENT that the republicans tout? Between giving out your income, SSN, DOB, children’s names, ages, etc, medical information and wiretapping your phone if you happen to be unlucky enough to know and call someone from, say, Italy, we have no privacy at all.
Republicans want to be between our legs, on the phone with us and send us to die for, well, does anyone know why we are in Iraq? Small government is just another republican lie.
I will mention this again in November. They are gonna fry for the lies.
March 23rd, 2006 at 12:44 pm#33 have you read the irs publication the poster at #16 so kinly posted? If not, I suggest you go read it prior to posting. Remember, the republicans now control all branches of our federal government, the irs is part of the treasury department which is controlled by the white house, so please do not insult my intelligence any further by trying to lay the blame for this anywhere but where it belongs, firmly at juniors feet!
March 23rd, 2006 at 12:50 pm#33 Your funny. You post that this is troubling and then go on to a rant. Nice try, but we aren’t buying the change the subject tactics from you thieves and liars. Sorry troll, jig is up. We know good and well what his motivations are, just as we know yours. Your word games are over and the people will revolt against the evil in office.
Oh yeah, buddy, we KNOW what his motivations are and so do you. Trouble for yous is that we all are onto his game. Sorry, but you just can’t get away with being so stupid for 8 years. Didn’t you know he couldn’t last? C’mon, you knew he was a dolt, you are just selfish. He is an evangelical christian that thinks his VERSION of God makes him do the most unGodly things imaginable.
In my father’s church, they are getting upset about being brought into the political fray. Yep, nice job trying to use God. But, alas, it has backfired and now he just likes a dumb zealot to most of us. Yeppers, we know his motivations - money and a trip to heaven.
March 23rd, 2006 at 12:51 pmI am sorry #16 - I meant to say kindly. It sent shock waves through my system when I read it. I keep thinking I cannot be shocked any more by this administration then lo and behold they surprisr me again.
March 23rd, 2006 at 12:51 pmhey troll, what about fox speculating we are already at war with iran, or your peeps speculation that the elite leftist media controls american thoughts, the wh speculation that iraq is not fairly being covered….the “speculation” that the right is behind this just fits the very simple pattern of them only serving corporate america, not the citizens…you will find more facts here than on any of the red blogs
March 23rd, 2006 at 12:51 pm– Third, this proposal shows once again that the administration doesn’t “get†privacy. Warrantless wiretaps, “total information awareness,†and now sale of your tax returns. There is still no White House official whose job is to screen proposals and protect privacy (a role I played in the Clinton Administration). There should be.
that quote from above is for you troll
citizens need our contry back, boycott taxes, hit em where it hurts, lets see the corp welfare when they have to depend on it
March 23rd, 2006 at 12:57 pmHello Back at ya, Unbelievable, doing well considering the state of this Bush mess. Valenteering 2 day’s a week at the local food bank, have the tail gate of my old 68 pick up almost full of Impeach Bush and more stickers and spending lots of time signing patitions and on other sites…Usualy just read through a bunch of post here and then get to work else where. We are about to loose it all as you know, nothing much getting done very fast for the displased in the south, our parks and wilderness is still under attack and about to be sold off and guess if Bull shit Bush has his way our port’s and air lines may still be sold off under disguise. These relegious zelots are very busy indeed, but many of us are working to open the publics eyes and ears…..How are you doing.?….I’m out for the day….Blessings..P,S. all it’s getting to the end of the month, trolls need their word count up to collect their checks from the reich wing. Don’t feed the trolls…….
March 23rd, 2006 at 1:04 pmMy personal information, including all financials, AND my soc. security number available for sale — and the benefit to me is WHAT….?
March 23rd, 2006 at 1:30 pmWasn’t there a legal matter recently, involving H&R Block? It was not resolved in their favor, I believe. No wonder BushCo wants to do “business” with them. SSDD
March 23rd, 2006 at 2:00 pmWow! Let’s start a list of everyone whose tax return we’d all like to see on the Internet:
George W. Bush; George HW Bush and Barbara Bush, Neil Bush, Dick Cheney and Lynne Cheney, Donald Rumsfield, Bill Frist, John McCain, Pat Roberts, Pat Robertson, Jerry Falwell, Grover Norquist, Ralph Reed, Henry Hyde, Senator Graham, Arlen Specter, Orrin hatch, Judd Gregg, C.J. Roberts, J. Scalia, Alberto Gonzales, J. Alito, J. Thomas, (the J.s are for justices), Karl Rove, Ken Mehlman, Jerry Falwell, Gary Bauer, Ralph Reed and obviously I could go all day adding names. I’D LOVE TO SEE THESE TAX RETURNS. Let’s get ‘em up on the internet!
But seriously, if the above group thinks their returns will become records, this crap will stop.
March 23rd, 2006 at 2:01 pmI dont know the answer to those questions but we all know how many bombs went off. I think if we deserve to know about the reports of James Hansen on global warming we also have a right to know the answers to these questions. Its a matter of consistency, we demand the whole truth from President Bush shouldn’t we demand the same from the media?
March 23rd, 2006 at 2:12 pmWrong thread sorry
March 23rd, 2006 at 2:12 pmNothing surprises me about this administration. CORRUPT!! CORRUPT!! CORRUPT!!!
March 23rd, 2006 at 2:20 pmSpeaking of numers…
March 23rd, 2006 at 3:02 pmBUSH, your number is up!
Man am I ever glad I do my OWN tax returns. Fuckers.
March 23rd, 2006 at 3:05 pmSolution: Do your own taxes.
Problem: Solved.
It is my theory if more people did their own taxes, the tax law would change fast and become simplified. Besides it is our government, our laws which we live under, shouldn’t we understand them?
Isn’t it ironic that H&R Block couldn’t even do their own taxes.
Our Governor several years ago said our state taxes would be simplified, so you could do them on an index card. That must have been an election year, because they have only gotten worse and there is no talk now of simplification. Our state government sold our information from another agency, until a Representative found out by accident it was occuring without anyone’s knowledge. Now you can sign a form to opt-out, but that is only for individual requests. If someone wants more than n-number, they can get it if they have the dough.
March 23rd, 2006 at 3:53 pmBush now endorses government-sponsored identity theft. Our tax returns with name, address, SSN and our incomes for sale. PEOPLE, WAKE UP!!! CALL YOUR SENATORS AND CONGRESSMEN(WOMEN) AND DON’T JUST TELL THEM NO, BUT GODDAMN HELL NO!!!!
March 23rd, 2006 at 5:55 pmThere was just a news item on CNN about a two year old victim of identity theft — the sale of tax returns and all of the associated data won’t exacerbate that will it?
March 23rd, 2006 at 7:17 pmThis is will rank as one of the dumbest ideas from the government.
I saw my CPA today. He is also a friend of mine, and so I said to him, “you aren’t planning to sell my tax return, are you?” He had no idea what I was talking about. So I told him about this post, it was the first time he’d heard about it . So I wrote down this website for him and told him to check it out for himself. I must admit, I got a charge out of being able to tell him about it, before he heard about it somewhere else. So, thank you, TP, for always being “on it”! Oh- he assured me he would not sell my return. ;)
March 23rd, 2006 at 9:28 pmI agree that the regulation is too widely encompassing, and can be abused. The real reason for the regulation was to let taxpayers know if their return is being prepared outside the US, or if information from the return is being provided to anyone other the IRS. The three reasons why are:
1) Many returns are now processed in other countries (India’s most common), with the clients none the wiser. The IRS wants Americans who pay for an American firm to prepare their US taxes to know if their returns are, indeed, staying within America or not.
2) In a typical client’s case, the information is passed on to the tax-preparation software company as part of e-filing. Over half the returns filed in the USA are efiled, which means quite a significant number are already being processed outside the firm you hired to do your returns.
3) Another large percentage are done by chain return companies (H&R Block, Jackson Hewitt, TurboTax online, etc.), and the marketing and development departments at the head offices of these companies use your return statistics to determine what improvements to make to their services next year (a good thing) and what new services to provide (an ominous thing). Some companies offer mortgage products, investment and IRA products, and a host of other products, and they are sold to you based on the results of your return.
The key thing the IRS was looking at in passing this law is making it obvious to the taxpayer what has already been going on behind the scenes. By being able to opt out, the IRS hopes to protect you from shameless marketing techniques. It’s also hoping that the old “American jobs for American people” sentiment will kick in, and fewer returns will be processed outside the US. Unfortunately, by making the law all-encompassing, firms such as mine (located outside the US) will have to have every client sign a lengthy disclosure to inform the client that the work is being done abroad, as if my London address wasn’t a big tip-off.
The regulations require that signature is “opt in” rather than “opt out”, so if you don’t sign, they can’t mess with your stats. I would encourage everyone who hires a paid preparation firm or uses an online tax preparation programme to read all disclosures very carefully before signing. This particular disclosure is required by law to be on a separate piece of 8 1/2 x 11 paper in the same size font as the majority of the company documents, so it should be obvious when you get to it. I would never opt in without removing the clause allowing distribution of data to third party marketing sources; but you should allow your tax preparer to share data with the tax software to enable e-filing.
This regulation hasn’t been finalized yet. You can lobby your congressmen and the Senate Tax Committee to make this regulation fairer, or stricter. Myself, I haven’t lost any clients yet with my disclosure that explains we want to be able to send information related to their US tax returns to their UK accountants and our e-file provider.
–liz@BritishAmericanTax.com
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