Privacy and Confidentiality

Data Sharing

Late in 2008, the IRS announced restrictions on the sharing of taxpayer data, based on the Internal Revenue Code Section 7216 that affected free tax preparation programs. New regulations regarding Internal Revenue Code Section 7216 became effective on January 4, 2010. In 2009, Notice 2009-13 allowed disclosure, without taxpayer consent, of anonymous statistical compilations as long as it did not disclose cells containing fewer than 25 tax returns. Revised Section 7216 regulations take effect January 4, 2010 and provide greater flexibility in this area by allowing disclosure, without taxpayer consent, of anonymous statistical compilations with cells containing data from not less than 10 tax returns. The prohibition regarding use of anonymous aggregate reports for advertising and marketing that contain or reflect average amounts of refund, credit or rebate is still in effect.

Data Retention

Here are resources to ensure you manage client data appropriately.