Printer Friendly

PRIVACY STATUTES ENACTED.

Two laws take effect Jan. 1 that impact the way all California businesses treat customer and client information.

AB 2246 requires businesses to take reasonable steps to destroy, or arrange for the destruction of customer records that contain personal information before the records are discarded. Personal information includes anything that identifies, relates to, describes or is capable of being associated with a particular individual. The definition includes but is not limited to, name, signature, social security number, physical characteristics, or description, address, telephone number, passport number, drivers license or state I.D. number, insurance policy number, education, employment, employment history, bank account, credit card, or debit card numbers or any other financial information.

This law applies to electronic records, documents or recordings of personal information. The requirement applies to every business in California. Failure to comply could result in civil liability including actual damages. Directories where individuals have voluntarily consented to distribution of names, addresses and phone numbers are exempt.

SB 1724 expands the misdemeanor prohibition related to disclosure of tax return information by those in the business of preparing tax returns unless the taxpayer consents to disclosure in a separate document that states to whom the disclosure will be made and how the information will be used.

SB 1724 also prohibits any individual or business, including financial institutions that obtain tax return information for any purpose, from disclosing any part of that information or using it for any unrelated use unless the following apply:

* The taxpayer agrees in writing or via electronic means to disclose their information

* The disclosure is required to complete the transaction for which it was furnished.

* To obey a court order

* The disclosure is authorized or required by federal law.

* To prevent fraud.
COPYRIGHT 2000 California Society of Certified Public Accountants
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:California CPA
Article Type:Brief Article
Geographic Code:1U9CA
Date:Dec 1, 2000
Words:288
Previous Article:IRS PROPOSES AUTOMATIC EXTENSIONS.
Next Article:TAX SEASON PR TARGETS BUSINESS TRAVELERS.
Topics:


Related Articles
Kentucky lawyers and chiropractors regain access to accident reports.
AMERICAN LAWYER MEDIA STARTS "E-COMMERCE LAW WEEKLY".
Study of taxpayer confidentiality.
U.S. Appeals Court: EX POST FACTO PAROLE.
U.S. Appeals Court: EX POST FACTO PAROLE.
Privacy: what every manager should know: companies can't afford to ignore the fact that consumers are increasingly concerned about how businesses use...
Chief privacy officer: your next career? CPOs are a necessity in today's business environment, but no one envies their challenging role of upholding...
Privacy matters: congress continues to study ways to protect consumers' financial information. (Property/Casualty: Privacy Insight).
Protecting privacy in Canada's private sector: businesses that are serious about competing successfully in Canada need to get serious about privacy....
Canada's privacy law faces legal challenge: if Canadian courts rule PIPEDA unconstitutional and strike it down, the ramifications for Canadian and...

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters