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Privacy Policy Disclosure Law

Requirements for Tax Practitioners

Effective November 13, 2000, a financial institution (including a tax preparer) is required to provide customers or clients with a notice of its privacy policies and practices. 

This new privacy law prohibits tax preparers from disclosing nonpublic personal information about a client to third parties unless the tax preparer satisfies various disclosure requirements.

In order to provide sufficient time for you to establish policies and systems to comply with these requirements, the Commission has extended the time for compliance until July 1, 2001.
However, you should learn about this new law that affects you.

INFORMATION SOURCES:

The Gramm-Leach-Bliley Act, enacted by Congress on November 13, 2000, establishes federal rules governing the disclosure of personal financial information by financial institutions about their customers. 
A copy of the Gramm-Leach-Bliley Act, S.900, (Enrolled Bill) can be found search for Gramm-Leach-Bliley Act, S.900, at  http://thomas.loc.gov.

On May 24, 2000, the Federal Trade Commission released the final rule 16 CFR 313 which deals with the privacy of consumer financial information. A copy of this Federal Rule, 16 CFR 313 can be found at http://www.ftc.gov/os/2000/05/65fr33645.pdf.

Greatland Corporation offers disclosure forms in compliance with the privacy provisions of the Gramm-Leach-Bliley Act on their web site at http://www.greatland.com/privacy in addition to a copy of the "Final" Regulations.

CFS Income Tax has information on its web site at http://taxtools.com regarding this new law and
will be adding sample privacy policy letters in compliance with the provisions of the rule to it's Tax Corresponder program.

Please Note: This is not an endorsement of the products of the above companies and this information is provided as assistance in learning about this new law.

  

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