The Information Collected by Online Providers and Shared With Third Parties Is Not Clearly Disclosed to Taxpayers and Is Unknown to the IRS

Update Revenue Procedure 2013-14 to include the language found in the Treasury Regulation § 301.7216-3 that the consent statement must identify the purpose of disclosure and specific recipient(s).

Evaluate whether any clarifications or updates to Revenue Procedure 2013-14 or Treasury Regulation § 301.7216-3 are needed to address concerns or raise awareness of data sharing practices with tax software companies that use pixels.

Identify and implement potential solutions that will ensure that Authorized e-file Providers comply with the regulatory requirements of taxpayer consent statements. This can include, for example, sample reviews of tax software companies’ taxpayer consent statements or creating a data element to track if taxpayers are consenting to sharing their information with third parties.