I thought this was something that everyone should be aware of. A recent proposed IRS rule change will allow tax preparers to sell the information on your tax return to third parties.
Read the Seattle Times article here.
And if you're interested in my feelings about the 'tax preparation complex' flip below the fold. In short, I'm not a fan, and I'll be damned if I ever pay someone to do my taxes for me... regardless of how 'complicated' they might be.
Many of you know that I'm not a fan of the 'tax preperation industrial complex', and the manner in which they have been aggressivly advertising the idea this year that 'taxes are too complicated for you to do on your own', so 'buy our products and you'll be safe'.
I have real issues with the idea that in order to comply with the law, you need to pay someone to do your taxes for you. I also feel that most corporate tax products are basically a 'one size fits all' product, that often leaves taxpayers paying more than they need too, because of missed deductions. This is done because because the corporation doesn't want to take any risk whatsoever in actually evaluating individual situations, so it's better to make it black and white, one size fits all, even if it means the taxpayer overpays.
How do I know this? Because I have found errors in the electronic filing returns of my folks for the last few years, and even fought the IRS, and won, over deductions that tax preparers said I couldn't take. The 'Tax preparations complexes' intention is not to get you the best deal, it's to minimize the risk to themselves while maximizing profits. They are not looking our for you.
It also seperates the taxpayer from the process, and detaches them from being their own advocate, and from gaining an understand of how the tax code actually works. But instead, too many americans have put their blind trust in the 'tax preparation complex' and at the same time buy the rhetoric about flat taxes and tax cuts for the wealthy, without actually understanding how the system works.
This article talks about a recent rule change that allows tax preparers to sell your return information to third parties with your consent.
However the electronic filing companies (turbotax), and tax preparers like HR block, will probably just build the consent clause into your 'end user agreement' or whatever you sign when you're at the preparers office, and most people never read those things anyway. So when you check the licensing agreement after installing turbotax, the number of dependants you have, your income, your deductions, and the types of deductions that you claim, can be sold to marketers. So if you made $1000 in charitible contributions, expect more phone calls asking for donations from non-profits... and those calls are exempt from the 'do not call' list. If you claimed a 'loss or theft' deduction, expect more junk mail from home security companies... if you claimed three kids, expect to be bombarded by junk mail for kids products. Of the two things that are certain in life, Death and Taxes, I guess we can add junk mail and telemarketing to the list... privacy rights be damned!
Yet one more reason why I think you're better off doing things the old fashioned way. Use the IRS website, read the publications, and fill our the forms the old fashioned way. Aside from saving you a couple of bucks in fees or software, you'll actually understand what it is that you are paying.