Section 7216 of the Internal Revenue Code makes it a crime for a tax return preparer to knowingly or recklessly use or disclose tax return information without authorization. The related regulations permit certain uses, such as preparing the return itself, and require specific, written taxpayer consent for others, such as offering non-tax services or disclosing information to certain third parties.
The consent rules are detailed. They cover the format of the consent, the required statements, and how long it remains valid. Firms that adopt new software, outsource work, or offer additional services should review whether those activities involve a use or disclosure that needs consent, and should consult current IRS guidance or counsel.