PHILADELPHIA, March 21 (UPI) -- An IRS rule change that would allow tax preparers to sell information from returns "flew in under the radar screen," the Philadelphia Inquirer reports.
The change was part of a package of regulations published in the Federal Register and labeled "not a significant regulatory action."
Internal Revenue Service officials say they are just trying to update rules for the age of electronic filing. But critics say that allowing preparers to profit from taxpayers' information could threaten the voluntary tax system.
Under the new rule change, taxpayers would have to consent in writing to any distribution of confidential information.
Beth McConnell of the Pennsylvania Public Interest Research Group said that the rule changes include one consumer-friendly item -- requiring taxpayer consent before returns can be processed overseas. But she said the tradeoff is a tremendous loss in privacy.
An IRS spokesman said the agency has received only a few comments on the rule change.
"I think this just flew under the radar screen for so many people," McConnell said.
