Jul 30 ā¢ š£ Hub Gems
š 12 USC Ā§ 3403 ā Right to Financial Privacy
This law protects customersā financial records from being accessed by the government without proper legal process, like a subpoena, warrant, or the customerās permission.
š§¾ What This Means for Tax Pros:
If youāre working with Schedule C clients (self-employed individuals) and the IRS (or another agency) requests access to their financial data:
- YOU are not automatically obligated to hand it over without the proper legal documentation.
- This post is emphasizing that you have a legal right to protect your clientās information until the correct process is followed.
š§ Key Terms:
ā¢ Customers: People with accounts at financial institutions.
ā¢ Records: Bank transactions, balances, deposits ā any financial data.
ā¢ Unwarranted Intrusion: When the government tries to access records without a warrant, subpoena, or consent.
ā¢ Legitimate Law Enforcement Activity: Access is only allowed with a proper legal reason and process.
If youāre managing clients and need a simplified way to communicate this, you could say:
āWe donāt release financial records to anyone, including the IRS, without proper legal authority. This protects your privacy and follows federal law.ā
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š 12 USC Ā§ 3403 ā Right to Financial Privacy
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