When dealing with the IRS, taxpayers have the right to confidentiality. As with all ten rights outlined in the Taxpayer Bill of Rights, the IRS is supposed to take these rights very seriously.
Taxpayers should expect that any information they provide to the IRS will not be disclosed to outside parties, unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers and others who wrongfully use or disclose taxpayer return information.
Here are some more things that taxpayers can expect when it comes to the right to confidentiality:
•In general, the IRS cannot disclose taxpayers information to third parties, unless given permission by the taxpayer. Examples of when a taxpayer requests that the IRS discloses this information could be regarding a mortgage or student loan application.
•In general, the IRS cannot contact third parties, such as a taxpayer's employer, neighbor, or bank, to get information about a taxpayer unless it provides the taxpayer with reasonable notice before making the contact.
•When dealing with a federally authorized tax practitioner, taxpayers can expect the same confidentiality protection that they would have with an attorney.
•Here are a couple of examples of communications with a practitioner that are considered confidential:
- The preparer advises the taxpayer about their dealings with the IRS.
- Issues related to noncriminal tax matters before the IRS.
•A tax preparer is prohibited from disclosing taxpayer information for any reason other than for tax return preparation. A preparer who does this may be subject to criminal fines and prison.
IRS Taxtp 2018-54
Reliable Tax Attorney is a Maryland Tax Attorney representing clients nationwide before the IRS and various tax agencies. For more information on how our office can assist you with your tax problems, please call 443-345-8291.