Section 7216 consent to use and disclose tax return information
When you need a 7216 consent, the mandatory wording, and why use and disclosure are signed separately.
Section 7216 of the Internal Revenue Code makes it a crime for a tax preparer to use or disclose a client's tax return information for anything other than preparing the return, unless the client consents in writing first. You need a consent to offer clients other services from their return data, to send it to a lender, or to use an offshore preparer. Rev. Proc. 2013-14 sets the mandatory wording, which this sample uses in 12-point type.
Fields, in order.
- 01Taxpayer and preparer
Each taxpayer's name and your firm's name, and the tax year.
- 02Purpose
Exactly what you will do with the information. "Marketing" is too vague; "to offer you our bookkeeping services" is specific.
- 03Information
The specific items, such as your adjusted gross income or your full return. Ask for only what the purpose needs.
- 04Recipient
For a disclosure, the named person or company receiving it, such as the lender.
- 05Duration
How long the consent lasts. Leave it blank and it lasts one year from signing.
- 06Signatures
Each taxpayer signs and dates each consent. Electronic signatures are allowed.
Common mistakes.
If the consent is a condition of preparing the return, it is not valid. Say so plainly and let them skip it.
Use and disclosure are separate consents with separate wording. This sample has a page for each; send only the one you need.
The required notice has to appear as written in Rev. Proc. 2013-14. Fill in the blanks, not the notice.
Consent has to come before you use or disclose the information.
Terms you will see.
Ask the document what any of them means. The answer cites the page.
Fill it, check it, sign it.
Fill it by asking
Drop the PDF, paste the facts, and the agent fills every matching field. Unmatched fields are listed so nothing is skipped.
Check it before you send
Empty required fields, a missing signature, a date that disagrees with another page. The document check lists them with page numbers.
Sign it and send it
Draw your signature and place it, free. Or send it to someone else to sign on their phone, with an audit certificate. Free, 25 a month.
IRS 7216 consent,
answered.
This guide is general information, not legal or tax advice.
Can clients sign it electronically?+
Yes. Rev. Proc. 2013-14 allows electronic consents. Fill the blanks and choose Request signatures; each taxpayer signs on their phone.
Do I need it to e-file the return?+
No. Preparing and filing the return is allowed without it. You need it for anything else.
Is this legal advice?+
No. It follows the published wording, but check it against the current revenue procedure and your firm's own policy.
Fill your IRS 7216 consent in about ninety seconds.
Type into it, sign with your finger and send it back. No card needed.