On January 1, 2009, new IRS regulations under Internal Revenue Code section 7216 became effective. Absent a specific, exception, Treas. Reg. section 301.7216 generally prohibits the disclosure or use of tax return information without the client’s explicit, written consent. Under section 7216, a tax return preparer is subject to a criminal penalty for “knowingly or recklessly” disclosing or using tax return information. Each violation of section 7216 could result in a fine of up to $1,000 or one year imprisonment, or both. 

AICPA members who are engaged in tax return preparation and tax planning services need to become familiar with Treas. Reg. section 301.7216 and Revenue Procedure 2008-35, the authoritative guidance with respect to a preparer’s disclosure or use of tax return information. In a practice guide for members, the Institute is providing several examples of consent forms which have been developed by CPA members for their discussions or consultations with individual clients. Further, the AICPA is providing an article on the section 7216 regulations entitled, "New Tax Preparer Rules for Disclosure and Use of Tax Return Information."

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Download AICPA Provides IRS Proposed FAQs, Seeks Additional Section 7216 Guidance