THE IRS MAY BE READING YOUR EMAILS WITHOUT A WARRANT. The American Civil Liberties Union has obtained documents under the Freedom of Information Act that suggests the IRS’s criminal division has been reading taxpayers’ emails without a warrant despite a 2010 decision by the Sixth Circuit Court of Appeals (United States v. Warshak) that found that the federal government must obtain a probable cause warrant before compelling email providers to turn over messages. It had been the IRS’s position that the “Fourth Amendment does not protect communications held in electronic storage, such as email messages store on a server, because internet users do not have a reasonable expectation of privacy in such communications.”
While the IRS may be precluded from compelling email providers to turn over messages in the Sixth Circuit, that court decision does not extend beyond the Sixth Circuit. According to the ACLU, the IRS Revenue Manual continues to contain language that no warrant is needed for emails stored by an Internet Service Provider for more than 180 days. It has also been reported that IRS investigators are provided guidance about reading publicly accessible social media sites to find out information about taxpayers that may contradict their returns.
What can we learn from this? While the IRS’s probe into emails and social media is related to criminal investigations which likely are of no concern to most taxpayers, email and social media postings should not be sent without forethought. Individuals are prone to use email because it is quick and easy but tend to ignore the fact that something has been recorded. Before putting anything in writing to your legal counsel or CPA, consider if an “old fashioned” telephone call may be a more appropriate course of action. Likewise if you are responding to a tax notice or nexus questionnaire, you should consult with your attorney and/or CPA first.
Note: Because each person and each business has unique needs and because tax laws are subject to change without notice, we invite you to call 610-594-2601 to make an appointment to consult with one of our tax professionals if you have an issue that you wish to discuss.
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