1.Under Internal Revenue Code (IRC) section 7216 and its concomitant regulations, a tax preparer must obtain the consent of a taxpayer before disclosing or using the taxpayer’s tax return information when that consent is required. Section 7216 makes it a crime for any preparer to knowingly or recklessly disclose any information that is furnished to the preparer in connection with preparing a client’s tax return or use the tax return information other than to preparer or assist in preparing that return thus establishing a prohibition on disclosure or use of a tax payer’s tax return information without the taxpayer’s prior consent.

2.For the purposes of IRC section 7216 and its regulations, a “tax return preparer” is any person in the business of preparing or assisting in preparing tax returns, any employee of such a person, or any person who provides auxiliary services in connection with preparation of tax returns (such as an e-file provider). “Tax return information “ is “any information, including, but not limited to, a taxpayer’s name, address, or identifying number, that is furnished in any form or manner for, or in connection with, the preparation of a tax return”.

3.A disclosure tax return information is “the act of making tax return information known to any person in any manner whatever”, and use of tax return information is “any circumstance in which a tax return preparer refers to or relies upon, tax return information as the basis to take or permit an action”.