Accounting firms that outsource tax preparation will now get a break from the IRS. A proposal is being made to let accountants share clients’ Social Security numbers with foreign preparers.

This change will reverse a rule scheduled to go into effect on Jan. 1, 2009. The rule would require the numbers to be wiped out or masked out. However, firms must get their clients’ to agree first to ensure data safeguards are in place.

So, if you do not wish to have your tax returns to be outsourced for preparation you should let your CPA firm know that, because this trend would be accelerating rapidly in the years to come!

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Does this mean that going forward there is an increased chance that my Tax Return preparation will be outsourced?

I am outraged by this! What about the security issues? My Social Security Number will be known to someone overseas, there is potential fraud and abuse that can take place!