Taxpayer financial privacy outweighs third-party efficiencies

The Arizona Capitol Times
Thursday, May 4, 2017
Jennifer Stielow

Another tax season has passed and of the millions of law-abiding taxpayers who filed, many had to wonder if their private financial information would remain secure. There is ample evidence to justify taxpayer concerns about confidentiality and security. In 2013, Maricopa Community College District notified over 2 million individuals of a massive data breach and there are countless other examples that have occurred across the country.
Several proposals have come before the Arizona Legislature to loosen confidentiality protections and this year’s session brought yet another challenge under SB1242. The bill would allow the release of confidential taxpayer information to a third party to assist government in performing its tax administrative duties. Privatizing government services is generally a good idea but not when it ignores potential consequences from a taxpayer’s perspective.

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