Confidentiality of Taxpayer Information: IRC Section 7216 and Related Rules

Categories: Ethics, IRS CE
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About Course

This self-study ethics program builds on the general IRC §7216 disclosure and consent framework to examine specialized confidentiality contexts that arise in modern tax practice: the use of tax preparation software and e-file providers, the list broker prohibition on sale or rental of taxpayer lists, the special consent language required under Revenue Procedure 2013-19 before outsourcing return preparation outside the United States, disclosure chains within affiliated firms and upon a practice’s sale or merger, the civil penalty mechanics of IRC §6713 as distinguished from the criminal penalty structure of IRC §7216, and the recognized exceptions permitting disclosure of tax return information in litigation and administrative-subpoena contexts.

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What Will You Learn?

  • Apply the IRC §7216 disclosure/use framework to tax preparation software, e-file providers, and data aggregators
  • Identify the list broker prohibition and distinguish permitted marketing consent from a prohibited sale or rental of taxpayer lists
  • Apply the Revenue Procedure 2013-19 special consent language required before outsourcing return preparation outside the United States
  • Distinguish permissible intra-firm and affiliated-group disclosures from disclosures requiring separate taxpayer consent
  • Identify the disclosure obligations that transfer to a successor practice upon a sale, merger, or acquisition of a tax practice
  • Compute the civil penalty exposure under IRC §6713 and distinguish it from the criminal penalty structure under IRC §7216
  • Apply the recognized exceptions permitting disclosure of tax return information in litigation and administrative-subpoena contexts
  • Integrate the specialized §7216 disclosure contexts addressed in this course with the general consent and disclosure framework

Course Content

Module 1 – Tax Return Preparation Software, E-File Providers, and the List Broker Prohibition
This module examines the §7216 consent requirements specific to tax preparation software vendors and e-file providers, including the list broker prohibition on using taxpayer data for solicitation purposes.

  • Tax Return Preparation Software, E-File Providers, and the List Broker Prohibition

Module 2 – Outsourcing and Offshore Return Preparation: Revenue Procedure 2013-14 Consent Requirements
This module addresses the specific consent requirements of Revenue Procedure 2013-19 that apply when return preparation work is outsourced to a provider located outside the United States.

Module 3 – Multi-Preparer, Affiliated-Group, and Successor-Practice Disclosure Chains
This module covers disclosure chains among multiple preparers, affiliated firms, and successor practices, including the same-firm exception and the disclosures required in a practice sale or merger.

Module 4 – Civil and Criminal Penalty Mechanics Under Sections 6713 and 7216, and Litigation-Context Disclosures
This module reviews the civil penalty framework under IRC §6713 and the criminal penalty framework under §7216, along with the litigation and subpoena contexts in which disclosure may be permitted or required.

Final Assessment – Confidentiality of Taxpayer Information: IRC Section 7216 and Related Rules
This final assessment consists of 10 multiple-choice questions covering all four modules of this course. A passing score of 70% or better is required.

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