IRS Promoting Identity Theft

The IRS is trying to make identity theft easier with new rules authorizing the sale of information from tax returns to data brokers.

As reported in the Seattle Times:

The Internal Revenue Service (IRS) is quietly moving to loosen the once-inviolable privacy of federal income-tax returns. If it succeeds, accountants and other tax-return preparers, for the first time, will be able to sell information from individual returns — or even entire returns — to marketers and data brokers.

The possible change is raising alarm among consumer and privacy-rights advocates. It was included in a set of proposed rules that the Treasury Department and the IRS published in the Dec. 8 Federal Register, where the official notice labeled them "not a significant regulatory action."

IRS officials portray the proposed changes as house-cleaning measures needed to update outmoded regulations that were adopted before the IRS began accepting returns electronically. The proposed rules, which would become effective 30 days after a final version is published, would require a tax preparer to obtain written consent before selling tax information.

We don't make this up, folks. Anyone else want to move to New Zealand?