Internal Revenue Code Sec. 7216 is a criminal provision enacted by the U.S. Congress in 1971 that prohibits preparers of tax returns from knowingly or recklessly disclosing or using tax return information. A convicted preparer may be fined not more than $1,000, or imprisoned not more than one year or both, for each violation.
Sample Consent Forms
Consent forms should be used when tax return information is shared with outside parties including entities related to a tax practitioner’s firm, such as an affiliated investment advisory or wealth management firm or with another tax practitioner who is assisting with the preparation of the return if that practitioner is not part of or employed by the firm that is preparing the return.
The appropriate consent forms for one accounting firm may not be suitable for another firm. Each tax preparer should read Regs. Sec. 301.7216, Rev. Proc. 2013-14 and Rev. Proc. 2013-19 very closely when drafting the appropriate consent forms necessary to meet the unique facts and circumstances of his or her firm’s needs.
Five examples of consent forms are provided as follows:
- Form 1040 taxpayers – Consent to disclosure of tax return information
- Form 1040 taxpayers – Consent to foreign disclosure of tax return information
- Form 1040 taxpayers – Consent to use of tax return information
- Non-1040 taxpayers – Consent to disclosure of tax return information
- Non-1040 taxpayers – Consent to use of tax return information
Featured AICPA Tax Section and Personal Financial Planning (PFP) Section Resources
Tax Practice Quality Control Guide (PDF)
(open to Tax Section)
Practical Retirement Planning Practice Guide (PDF)
(open to PFP Section)
Reviewed July 29, 2019