Guidance on IRC 7216 and revised Regulations
Sample Consent Forms
Disclosure Situation 1
- Consent is sought for disclosure of tax return information in the context of tax return preparation or performance of auxiliary services (for example, where a tax return preparer seeks substantive advice from another tax return preparer which will affect the tax liability reported by a taxpayer); and
- Tax return information will not be disclosed outside the United States or any territory or possession of the United States
Disclosure Situation 2
- Consent is sought for disclosure of tax return information in the context of tax return preparation or performance of auxiliary services; and
- Tax return information will be disclosed outside the United States or any territory or possession of the United States;
- Disclosure does not include the taxpayer’s social security number, and
- Disclosure does not include a document where the social security number is not fully masked or otherwise redacted
Disclosure Situation 3
- Consent is sought for disclosure of tax return information in the context of tax return preparation or performance of auxiliary services; and
- Tax return information will be disclosed outside the United States or any territory or possession of the United States
- Disclosure includes the taxpayer’s social security number, or
- Disclosure includes a document where the social security number is not fully masked or otherwise redacted
- Note that in order to disclose a taxpayer’s social security number to a tax return preparer located outside of the United States, both the tax return preparer located within the United States and the tax return preparer located outside of the United States must maintain an adequate data protection safeguard at the time the taxpayer’s consent is obtained and when making the disclosure. Rev. Proc. 2008-35 § 4.07.
- An exception to the consent requirement exists where a tax return preparer located within the United States initially receives a social security number from a tax return preparer located outside of the United States and the preparer within the United States retransmits the social security number to the preparer that initially provided it. Treas. Reg. § 301.7216-3(b)(4).
Disclosure Situation 4
- Consent is sought for disclosure of tax return information in the context other than tax return preparation or performance of auxiliary services; and
- Tax return information will not be disclosed outside the United States or any territory or possession of the United States
Disclosure Situation 5
- Consent is sought for disclosure of tax return information in the context other than tax return preparation or performance of auxiliary services; and
- Tax return information will be disclosed outside the United States or any Territory or possession of the United States
- Disclosure does not include the taxpayer’s social security number, and
- Disclosure does not include a document where the social security number is not fully masked or otherwise redacted
Disclosure Situation 6
- Consent is sought for disclosure of tax return information in the context other than tax return preparation or performance of auxiliary services; and
- Tax return information will be disclosed outside the United States or any territory or possession of the United States
- Disclosure includes the taxpayer’s social security number, or Disclosure includes a document where the social security number is not fully masked or otherwise redacted
- Note that in order to disclose a taxpayer’s social security number to a tax return preparer located outside of the United States, both the tax return preparer located within the United States and the tax return preparer located outside of the United States must maintain an adequate data protection safeguard at the time the taxpayer’s consent is obtained and when making the disclosure. Rev. Proc. 2008-35 § 4.07
Use - All Situations
- Consent is sought for use of tax return information under any circumstance
The information contained on this page is based on generalizations and may not include all relevant information necessary for you and/or your clients. It is not intended for the purpose of providing specific legal, accounting, or other professional advice to any particular recipient or with respect to any particular jurisdiction. The author, publisher, and distributor of this document (1) make no representations, warranties, or guarantees as to its technical accuracy or compliance with any law ( federal, state, or local) or professional standard; and, (2) assume no responsibility to any recipient of this document to correct or update its contents for any reason, including changes in any law or professional standard. Before using any consent letter in your practice, you should formally retain the counsel of an attorney knowledgeable as to the accounting industry, your practice, and the laws of any jurisdiction(s) within which you conduct your practice to ensure the document’s maximum usefulness and compliance with applicable laws and professional standards.
