Taxpayer Privacy Act of 2006

The Taxpayer Privacy Act of 2006 (H.R. 5075) was designed to increase the security of personal financial data by restricting how tax return preparers handle sensitive information. The bill would have prohibited tax preparers from sending or disclosing a client's tax return information to any person or entity located outside of the United States. Additionally, it sought to tighten privacy rules by banning the use or disclosure of tax data even with taxpayer consent, except under specific, limited circumstances. For the average citizen, this legislation aimed to prevent the outsourcing of tax preparation services to foreign countries and reduce the risk of personal data being shared for purposes unrelated to filing a tax return.