Is your IRS information up for sale?

(New York-WABC, March 23, 2006) (WABC) -- Some of the most sensitive information you have is right on your tax return. And now, that information may be for sale. It's all thanks to a new IRS proposal.

These may be your tax returns, but they are also a map of your life. How much you make, your medical expenses, even charitable donations is all right on the form.

Now, an Internal Revenue Service proposal would allow tax preparers to sell that information to marketing companies and data brokers.

Donna LeValley, J.K. Lasser Tax Guides: "This is a shockingly bad idea ... it tells a lot about us, about our families."

The IRS ironically claims it is doing this to improve consumer protection. The agency argues it would require consent before sending your tax returns overseas for processing or disclosing them to a third party.

In a statement they say: "The heart of this proposed regulation is about the right of taxpayers to control their tax return information."

But on the other hand, many consumers could unknowingly sign away their privacy.

Peter Swire, Center for American Progress: "The permission here is fake ... sold to a database company."

Some say it's hard to see why consumers would want to have their information sold.

As for the individual, consumer groups are saying there's nothing to gain by having your records sold -- and certainly everything to lose.

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