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Category: Information From the IRS

Information About IRC 7216 Consent Form

New regulations under Internal Revenue Code Section 7216, Disclosure or Use of Tax Information by Preparers of Returns, became effective January 1, 2009.  The new regulations updated previous regulations that had been substantially unchanged since the 1970s, giving taxpayers greater control over their personal tax return information.  The statute limits tax return preparers’ use and disclosure of information obtained during the return preparation process to activities directly related to the preparation of the return.  The regulations describe how preparers, with the informed written consent of taxpayers, may use or disclose return information for other purposes.  The regulations also describe specific and limited exceptions that allow a preparer to use or disclose return information without the consent of taxpayers.

The IRS website provides assistance for preparing Section 7216 Consent Forms.  These examples may not satisfy your legal obligations pursuant to IRC 7216.  We strongly suggest that you use these examples as a guide in creating your own 7216 disclosures and that you have them reviewed by a lawyer to ensure that they comply with IRC 7216.  For additional information, please contact the IRS Practitioner Hotline at 1.866.860.4259.

 Does Everyone Need To Sign The IRC 7216 Form?
Taxpayers need to sign Form 7216, Disclosure or Use of Information by Preparers of Returns, if any of their information will be shared with another party.  This includes ALL clients who apply for a bank product.

 How Long Should I Keep IRC 7216 Form On File?
IRC 7216 states that the Disclosure Form(s) are good for approximately one year, unless otherwise specifically stated on the documentation signed by the taxpayer.