The Internal Revenue Service has released a proposed regulation that would give taxpayers up to 120 days to provide the IRS with an authorization permitting the disclosure of their tax returns and tax information to a designated third party.

The current period for providing the authorizations to the IRS is 60 days. REG-153338-09 would effectively double the period within which a signed and dated authorization must be received by the IRS (or an agent or contractor of the IRS) in order for it to be effective. 

Some institutions charged with assisting taxpayers in their financial dealings have encountered difficulty in obtaining written authorizations and submitting the authorizations within the 60-day period allowed by the existing regulations. The proposed regulation would affect taxpayers who submit authorizations permitting disclosure of returns and return information to third-party designees. 

The IRS is planning to hold a public hearing on the proposed regulation on June 9. Written or electronic comments must be received by May 17.

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