An official website of the U.S. Govand advocate to ensure waivers follow IRS rules and regulations; are clear, concise, and written in plain language; and provide taxpayers an avenue by which they can hold parties accountable if their return information is disclosed to a third party without their consent.
This objective carried over from Fiscal Year 2024.
Activity 1: Create a team to review any existing IRS processes for ensuring that return preparers and tax return preparation software companies are in full compliance with the rules and regulations governing taxpayer consent for using and disclosing tax return information; if appropriate, TAS will make recommendations as to how the IRS can strengthen this review process.
Activity 2: Explore what options are available to taxpayers to hold return preparers and tax return preparation software companies accountable for unauthorized uses or disclosures of their information and research any potential legislative changes that may be necessary to protect tax return information; if appropriate, TAS will make legislative recommendations to Congress in the National Taxpayer Advocate’s Annual Report to Congress.
Activity 3: Review tax return preparation software companies’ consents to share tax return information and recommend changes to the consent statements to better protect taxpayer rights.
Activity 4: Review and consider the need for legislation, similar to the California Privacy Rights Act, which added the right to correct inaccurate personal information and the right to limit the use and disclosure of sensitive personal information.
Activity 1: The IRS started the testing process but ran into some roadblocks, TAS is monitoring and considering next steps. In the meantime, the project is on hold with no timeframe to restart. This activity is being closed as completed.
Activity 2: In the 2025 Purple Book, legislative recommendation #4, Authorize the IRS to Establish Minimum Standards for Federal Tax Return Preparers and to Revoke the Identification Numbers of Sanctioned Preparers, addresses this activity. This activity is being closed as completed.
Activity 3: The IRS started the testing process but ran into some roadblocks, TAS is monitoring and considering next steps. In the meantime, the project is on hold with no timeframe to restart. This activity is being closed as completed.
Activity 4: TAS continues to research for possible legislative recommendations. This activity is being closed.
TAS is monitoring the IRS’s testing of e-Filing software and will make legislative recommendations as needed.
TAS is monitoring the progress of the IRS’s testing of e-Filing software. The project is currently on hold.
TAS continued to monitor the progress of the IRS’s testing of e-Filing software. The project is currently on hold.
TAS continued to research for possible legislative recommendations.
The IRS started the testing process but ran into some roadblocks, TAS is monitoring and considering next steps. In the meantime, the project is on hold with no timeframe to restart. We recommend this activity to be marked as completed at this time.
In the 2025 Purple Book, legislative recommendation #4, Authorize the IRS to Establish Minimum Standards for Federal Tax Return Preparers and to Revoke the Identification Numbers of Sanctioned Preparers, addresses this activity.
TAS monitored the IRS scanning process’s target goal of 99.9% digitization of filed tax and information returns through the 2025 Filing Season. The IRS continued its digitalization and plan to hire more staff to assist with these efforts. The IRS is discussing alternatives to address roadblocks, and expects to see additional progress by January 2026. TAS will continue to monitor this activity.
