Confidentiality protection introduced in the House.Recent House legislation would curtail the unwarranted use of summons authority by the Internal Revenue Service. The Taxpayer Confidentiality Act of 1997 (HR 2563), sponsored by Jennifer Dunn Jennifer Blackburn Dunn (July 29, 1941 – September 5, 2007) was a prominent Republican member of the United States House of Representatives 1993–2005, representing Washington's 8th congressional district. (R-Wash.) and John S. Tanner John S. Tanner (b. September 22, 1944) is a politician from the state of Tennessee. He represents the state's Eighth Congressional District in the House of Representatives (map), based in northwest Tennessee. (D-Tenn.), is intended to provide more balance between the level of authority the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. requires to enforce the tax code and the right of taxpayers to confidentiality for personal information and tax advice. Currently, the IRS has the authority not only to obtain factual information necessary to determine taxpayer compliance but also nonfactual personal and proprietary information such as advice, analysis and opinions taxpayers receive from their tax advisers. Taxpayers can protect nonfactual information if they have legal counsel; however, this practice results in unequal treatment of taxpayers based on their financial resources or choice of tax professional. HR 2563 would limit the IRS's scope of authority to the factual information on which a return is based and information used to document gross income in routine audits. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the bill, the IRS would not have access to "thought processes This is a list of thinking styles, methods of thinking (thinking skills), and types of thought. See also the List of thinking-related topic lists, the List of philosophies and the . , theories, analyses, opinions and mental impressions." However, if the IRS has reasonable suspicion based on evidence that a taxpayer failed to fully report income, it would be given broader authority to summon other relevant factual information. According to Congresswoman Dunn, the conversations between a taxpayer and a preparer should not be "grist" for an IRS auditor's mill without an indication of unaccounted-for income or questionable deductions. "Every taxpayer, regardless of economic status, should have the same rights of privacy and confidentiality when dealing with the IRS," said Dunn. "It should not matter who advised you on your tax return, whether it's a tax attorney, a CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. or your sixth cousin." HR 2563 has been endorsed by the American Institute of CPAs, the National Federation of Independent Businesses The National Federation of Independent Businesses (NFIB) is the largest U.S. advocacy organization representing small and independent businesses. The NFIB has a membership of 600,000 business owners, including commercial enterprises, manufacturers, family farmers, neighborhood retailers, and the National Association of Enrolled Agents. |
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