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IRS plan to sell tax return data needs immediate audit

| March 22, 2006 8:00 PM

From the files of "As if folks really needed another reason to distrust the Internal Revenue Service" …

The IRS is floating a plan to allow tax preparers to sell personal financial information — or even copies of the actual tax return. The agency has scheduled a hearing on April 4 over the proposal, which is part of a package of possible changes that agency officials claim will safeguard information.

In an age where identity theft is one of the fastest growing crimes, is this really a road we want to travel?

Yes, tax preparation firms can already sell information from tax returns to affiliated groups — with the individual's written permission. However, the change would allow the IRS to sell the information to anybody willing to pony up the coin.

Sure, individuals have to authorize the sale, signing a form when they go over their return with their tax preparer. How many folks, however, blindly sign wherever there's a blank spot — not paying as close attention to what the tax preparer is saying or misunderstanding what's being said?

Should they pay more attention? Definitely. Should the IRS be putting them in a possible where their identity could end up in the hands of masses of telemarketers — or worse, identity thieves? Definitely not.

The proposal was first published in the Federal Register last December, but received little notice until recently. While public comment has closed on the plan, Congress has yet to approve it.

Think it's a bad idea? Tell Sens. Larry Craig and Mike Crapo as well as Reps. "Butch" Otter and Mike Simpson.

Caroline Lobsinger is the managing editor of the Daily Bee.