Tax returns contain highly sensitive financial and personal information, which raises concerns about privacy and confidentiality. This article delves into the legal framework and practical considerations surrounding the disclosure of tax returns, exploring who can access them and under what circumstances.
Taxpayer Bill of Rights: The Right to Confidentiality
The Taxpayer Bill of Rights (TBOR) is a cornerstone document that outlines the fundamental rights of taxpayers in their interactions with the Internal Revenue Service (IRS). The eighth right enshrined in the TBOR is the Right to Confidentiality, which safeguards the privacy of taxpayer information.
According to the TBOR, taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. This means that the IRS cannot arbitrarily share taxpayer information with third parties without the taxpayer’s consent.
Exceptions to Confidentiality
While the Right to Confidentiality is generally upheld, there are certain exceptions where the IRS may disclose taxpayer information:
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With Taxpayer Consent: Taxpayers can explicitly authorize the IRS to disclose their tax information to specific individuals or entities, such as mortgage lenders or student loan providers.
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Legal Requirements: The IRS may be required by law to disclose tax information in response to a court order, subpoena, or other legal process.
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Tax Administration Purposes: The IRS may use taxpayer information for tax administration purposes, such as conducting audits, collecting taxes, or enforcing tax laws.
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Authorized Third Parties: The IRS may share taxpayer information with certain authorized third parties, such as state tax agencies or foreign tax authorities, for specific purposes related to tax administration.
Unauthorized Disclosure of Tax Returns
The unauthorized disclosure of tax returns is a serious offense that can result in criminal penalties. Tax preparers, IRS employees, and other individuals who knowingly or recklessly disclose taxpayer information for unauthorized purposes may face fines and imprisonment.
Protecting Taxpayer Confidentiality
Taxpayers can take steps to protect the confidentiality of their tax returns:
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File Electronically: Electronic filing reduces the risk of physical theft or loss of tax returns.
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Use a Reputable Tax Preparer: Choose a tax preparer who is authorized to practice before the IRS and has a strong reputation for confidentiality.
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Review Disclosure Authorizations Carefully: Before signing any documents that authorize the disclosure of your tax information, carefully review the terms and conditions.
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Report Unauthorized Disclosures: If you suspect that your tax information has been disclosed without your authorization, report it to the IRS immediately.
Taxpayer confidentiality is a fundamental right that protects the privacy of sensitive financial and personal information. While the IRS may disclose tax information in certain limited circumstances, unauthorized disclosure is a serious offense. By understanding the legal framework and taking appropriate precautions, taxpayers can safeguard the confidentiality of their tax returns.
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FAQ
Can you view someones tax return?
Can you see anyone’s tax returns?
Can you see if someone files taxes?
Are IRS returns public?
Can I access someone else’s tax returns?
There are a few instances in which you are entitled to access someone else’s tax returns: You are a spouse filing a joint return, a paid tax preparer or the executor handling the financial affairs of a deceased taxpayer.
Can a person gain access to another person’s tax returns?
There are only a few specific cases where one person is legally entitled to gain access to another person’s tax returns. In those instances, the person requesting the other person’s returns should state the reasons for her request clearly and provide verification that she is entitled to the information.
Can the IRS tell you if you filed a tax return?
In fact, the tax laws bar the Internal Revenue Service (IRS) from even telling anyone whether you filed a tax return. This wasn’t always the case. Before the passage of the Tax Reform Act of 1976, in the wake of the Watergate scandal, tax return information was not protected by law.
How do I request a tax return from another person?
In those instances, the person requesting the other person’s returns should state the reasons for her request clearly and provide verification that she is entitled to the information. By following proper procedures, someone who has a legitimate necessity to see someone else’s tax information will be able to obtain the information she needs.