Why doesn’t the IRS ban preparers from sending tax returns overseas for preparation?
As noted above, under the statute, the general rule is that taxpayers control their own tax return information. In today’s global economy, there may be legitimate tax and nontax reasons for taxpayers to want their tax return information to be transmitted overseas. However, the IRS is concerned about the protection of taxpayer data overseas. The new rules will require preparers to inform taxpayers and obtain their consent before sending their tax information outside the United States.
