Why the IRS is Unable to Share Information on Your Amended Return
When filing your taxes, amending a return can be necessary for many reasons, such as a missed deduction, an error in calculations, or a change in income. However, it’s frustrating to learn that the IRS can’t share information on your amended return. Why is that?
The Taxpayer Bill of Rights
The Taxpayer Bill of Rights (TBOR) is a set of ten fundamental rights that should be afforded to taxpayers. One of these fundamental rights is the right to privacy, which protects taxpayers from the government’s unauthorized disclosure of their tax information.
When you file an amended return, the IRS isn’t allowed to share that information with third parties unless you provide written authorization to do so. From a legal standpoint, the government is not allowed to disclose your tax information, even to a spouse, without your consent.
Privacy Protection
The IRS takes taxpayer privacy seriously, which is the reason why they can’t share the information found in amended returns. In addition to the legal mandate, the agency has memoranda of understanding with many third-party entities like tax-preparation software companies that prohibit these entities from releasing taxpayer information for any reason.
Even certain employees within the IRS can’t access taxpayer information unless it’s explicitly authorized by law or the Commissioner of the IRS. The agency restricts access to all taxpayer information systems to only employees who require access to perform their duties.
Exceptions to the Rule
There are a few exceptions to the rule that limits the IRS from sharing data from an amended return. In cases of criminal investigations or prosecutions initiated by the government, the Department of Justice and other authorized agencies can access taxpayer data to investigate whether tax fraud or other crimes occurred.
Also, certain entities, such as state tax agencies and social security administration offices, are allowed to request data from an amended return without express written consent from the taxpayer. However, the agencies must use the data in strict confidentiality and only for tax-related reasons.
Conclusion
The IRS’s inability to share data from an amended return highlights the importance of taxpayers remaining vigilant about who has access to their tax information. While the TBOR’s privacy protection laws safeguard taxpayers, they must still take measures to protect their information, like avoiding email phishing scams and limiting access to sensitive financial information online. By doing so, taxpayers can help protect themselves and their finances.
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