Using IRS Records For Employment Hiring

[IT Recruiter]

What is the name of your state? Kansas

I just spoke with a National Telecom Company of about 25,000 employees that uses IRS records to check the background of candidates that they are considering hiring. The company is publically traded and must be Sarbanes-Oxley compliant.

In using the IRS for background checks, they lose approximately 70% of the applicants due to people leaving informaiton/companies off their resume and application.

What is the law on using the IRS for employment background checks? Thanks!

 

[Sockeye]

If the information is public record (which I have no idea if it is), then there would be no law against using that agency for a background check.

 

[pattytx]

I'm not sure that any DIRECT IRS information is public record, unless there has been a suit filed.

How are they getting this information from the IRS? This sounds kind of fishy to me.

 

[Sockeye]

I'm not sure that any DIRECT IRS information is public record, unless there has been a suit filed.

How are they getting this information from the IRS? This sounds kind of fishy to me.

I'm curious myself, hopefully we hear on how it's done.

 

[Snipes5]

Normally the IRS does not give information without signed permission from the "account holder" as it were. You can't just go look at someone's tax record, and the records are most definitely NOT public.

Sounds fishy to me too.

Snipes

 

[Beth3]

What is the name of your state? Kansas

I just spoke with a National Telecom Company of about 25,000 employees that uses IRS records to check the background of candidates that they are considering hiring. The company is publically traded and must be Sarbanes-Oxley compliant.

In using the IRS for background checks, they lose approximately 70% of the applicants due to people leaving informaiton/companies off their resume and application.

What is the law on using the IRS for employment background checks? Thanks!

Huh? The company TOLD you they use IRS records to do background checks?!? I dnn't remotely see how that is possible. Either you misunderstood or the person you spoke with was talking out of their hat.

 

[CO19]

What is the law on using the IRS for employment background checks? Thanks!

> There isn't any "law", per se, against using Tax Returns as means of conducting a background check *if* it is clearly disclosed on the employee release form that they are, specifically, authorizing the employer to obtain tax returns which employee must sign and authorize *AND* supply employer with a signed copy of IRS Form 4506 or copy of returns provided by applicant. I can't imagine ANY potential employee willing to authorize viewing of confidential tax returns as criteria for a background check and no client has EVER asked me for this info for their background checks.

I think someone is blowing smoke to you and would like you to contact this "company" again and ask if they have signed releases on file from applicant for accessing this AND signed copy of IRS Form 4506 or employee provided returns. .... please keep us posted on this.