SECTION 2. CHANGES

This revenue procedure modifies the mandatory language required on each taxpayer consent to disclose or consent to use tax return information. This revenue procedure also explains the difference between tax return preparation services (or auxiliary services) and other financial or accounting services. Some taxpayers have expressed confusion regarding whether they needed to complete consent forms to engage a tax return preparer to perform tax return preparation services. The modified mandatory language required in consent forms clarifies that a taxpayer does not need to complete a consent form to engage

2013–3 I.R.B. 283 January 14, 2013

furnished in connection with the preparation of an income tax return. A violation of section 7216 is a misdemeanor, with a penalty of up to one year imprisonment or a fine of not more than $1,000, or both, together with the costs of prosecution. Section 7216(b) establishes exceptions to the general rule in section 7216(a) and also authorizes the Secretary to promulgate regulations prescribing additional permitted disclosures or uses.

.02 Section 6713(a) prescribes a related civil penalty for unauthorized disclosures or uses of information furnished in connection with the preparation of an income tax return. The penalty for violating section 6713 is $250 for each disclosure or use, not to exceed a total of $10,000 for a calendar year. Section 6713(b) provides that the exceptions in section 7216(b) also apply to section 6713.

.03 Section 301.7216–3 provides that, unless section 7216 or § 301.7216–2 specifically permits the disclosure or use of tax return information, a tax return preparer may not disclose or use a taxpayer’s tax return information without obtaining a consent from the taxpayer. Section 301.7216–3(a) provides that consent must be knowing and voluntary. Section 301.7216–3(a)(3)(i) prescribes the form and content requirements that all consents to disclose or consents to use must include. Section 301.7216–3(b) provides timing requirements and other limitations upon consents to disclose or consents to use tax return information. Section 301.7216–3(b)(4) provides a limitation upon consents to disclose a taxpayer’s social security number to a tax return preparer located outside of the United States.

.04 Section 301.7216–3(a)(3)(ii) provides that the Secretary may, by publication in the Internal Revenue Bulletin, prescribe additional requirements for tax return preparers regarding the format and content of consents to disclose and consents to use tax return information with respect to taxpayers filing a return in the Form 1040 series, as well as the requirements for a valid signature on an electronic consent under section 7216.

Section 301.7216–3(b)(4)(ii) provides that the Secretary may require, by publication in the Internal Revenue Bulletin, additional consent format and content requirements for purposes of consents to disclose a taxpayer’s social security number.

This revenue procedure defines an “adequate data protection safeguard” and describes the requirements of an adequate data protection safeguard for purposes of removing the limitation upon consents to disclose a taxpayer’s social security number to a tax return preparer located outside of the United States.