Is Tax Preparation Information Public Record?
When it comes to using tax preparation services, the biggest worry that people have is about their privacy. They want to know whether the tax preparation information can be a public record; that is can their personal and confidential information be accessed by a third party. |
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Nearly all companies offering tax preparation services have a strict privacy policy. This means that any information you divulge or give voluntarily to these companies cannot be disclosed. Therefore, tax preparation information is not public record. The main reason for this is that the information will have sensitive data like your name, address, Social Security number, date of birth, filing status, names of spouse and dependents, Social Security numbers of spouse and dependents, and date of birth of spouse and dependents. This sensitive information if accessed by an unauthorized person can be misused.
However, in certain cases, certain information is disclosed as permitted by law and the professional code of conduct. These situations could be to comply with a subpoena or summons, when the company's practices are be reviewed by the state or licensing board, when the company is responding to complaints or query from the licensing board, when the company is sold, purchased or merged, or when the company is facing legal proceedings. However, even under these circumstances most of the sensitive information does not become public record. Only information that is required in each circumstance is divulged or disclosed without infringing a client's privacy or security.
Most companies that prepare taxes do not mind signing non-disclosure agreements with their clients. However, this is often used for high net worth individuals and not for ordinary people with ordinary income.
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