Can I use third-party project management tools that collect personal information in Illinois? What are the requirements?

Illinois Law on Disclosure of Personal Information Obtained in Tax Preparation Business

The Illinois Taxpreparer Disclosure of Information Act ^[1.2] prohibits the disclosure or conveyance of personal information obtained in the business of preparing federal or state income tax returns or assisting taxpayers in preparing such returns, unless such disclosure or conveyance is within any of the following:

1. Consented to in writing by the taxpayer in a separate document.
2. Expressly authorized by state or federal law.
3. Necessary to the preparation of the return.
4. Pursuant to court order.

Violation of this act is a Class A misdemeanor ^[1.1].

Use of Third-Party Project Management Tools that Collect Personal Information in Illinois

If the third-party project management tool collects personal information obtained in the business of preparing federal or state income tax returns or assisting taxpayers in preparing such returns, then the use of such tool may be subject to the Illinois Taxpreparer Disclosure of Information Act ^[1.2].

To use such a tool, the taxpayer’s written consent must be obtained in a separate document ^[1.1]. Contacting the taxpayer to obtain his written consent to disclosure does not constitute a violation of this Act ^[1.3].

Therefore, to use third-party project management tools that collect personal information in Illinois, the taxpayer’s written consent must be obtained in a separate document.

Source(s):

• [1.1] 815 ILCS 535/1
• [1.2] 815 ILCS 535/0.01
• [1.3] 815 ILCS 535/3

Jurisdiction

Illinois

• Privacy