IRSProposed RuleSeptember 3, 2025

Disclosure of Returns and Return Information in Connection with Written Contracts or Agreements for the Acquisition of Property or Services for Tax Administration Purposes; Withdrawal

Finance & BankingOther

Summary

The IRS is withdrawing a proposed rule that would have allowed the agency to share taxpayer information with contractors hired to help with tax administration work. This withdrawal means the IRS will not move forward with a plan that could have expanded who has access to sensitive tax return data.

Key Points

1The IRS proposed allowing tax return information to be shared with private contractors and vendors working on behalf of the agency
2The agency has now decided to withdraw this proposal, meaning it will not take effect
3This affects taxpayer privacy by keeping stricter limits on who can access personal tax information
4The withdrawal suggests the IRS listened to concerns about sharing sensitive financial data with outside companies
5Taxpayers' tax returns and related information will continue to be protected under existing privacy rules rather than the new expanded sharing rules

Key Dates

Published

September 3, 2025

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This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.