HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

T.D. 9409, page 118. REG–121698–08, page 163. Final, temporary, and proposed regulations under section 7216 of the Code update the rules regarding disclosures of tax return information by tax return preparers, providing an exception allowing a U.S. tax return preparer to obtain consent from a taxpayer to disclose a taxpayer’s social security number (SSN) to a non-U.S. tax return preparer when the U.S. preparer makes the disclosure through the use of an “adequate data protection safeguard,” the non-U.S. preparer receives the SSN via an “adequate data protection safeguard,” and the U.S. preparer verifies the maintenance of the adequate data protection safeguards in the request for the taxpayer’s consent. The regulations also provide clarification that the general SSN masking rule and the exception thereto apply only to consents related to returns in the Form 1040 series, and clarification regarding U.S. preparers on temporary travel status. The regulations are applicable to disclosures of tax return information occurring on or after January 1, 2009. A public hearing on the proposed regulations is scheduled for October 6, 2008.

Notice 2008–59, page 123. This notice provides guidance on questions and answers regarding Health Savings Accounts (HSAs) that have not previously been addressed in published guidance. Notices 2004–2, 2004–50, and 2007–22 amplified.

Rev. Proc. 2008–35, page 132. This procedure modifies and supersedes Rev. Proc. 2008–12, 2008–5 I.R.B. 368, which provided guidance to tax return preparers regarding the format and content of consents to use and consents to disclose tax return information with respect to taxpayers filing a return in the Form 1040 series ( e.g., Form