US section 7216 consent

What is US Section 7216 consent?

US Section 7216 consent is a US legislation (§ 301.7216-3) that permits a US tax preparer such as an accountant to use or disclose a client’s tax return information for certain purposes beyond preparing their tax return.

US legislation allows tax preparers to use their client’s financial information to prepare tax returns but they must obtain explicit consent if they use it for purposes other than tax returns or to disclose the client’s financial information to third-parties.

What makes Section 7216 consent valid?

Under US Treasury Regulation § 301.7216-3, consent must:

• Be informed and voluntary.
• Identify the taxpayer and the tax preparer.
• Explain what information will be used or disclosed.
• Identify the purpose and intended recipients where applicable.
• Be signed and dated by the taxpayer.
• Be obtained before the information is used or disclosed.

If no duration is specified, consent lasts one year.