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 regulations that have been substantially unchanged since the 1970s, and gave 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 examples listed on this page are provided with no inherent warranty.  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.

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 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) is good for approximately one year, unless otherwise specifically stated on the documentation signed by the taxpayer.

If you have questions regarding IRC 7216, please contact the IRS Practitioner Hotline at 1.866.860.4259 or read the following IRS articles:

Section 7216 Frequently Asked Questions
Section 7216 Updated Rules for Tax Preparers
Internal Revenue Bulletin