Sample consent language for CPA firms, EAs, and tax preparers disclosing tax return information to preparers located outside the United States. Complies with IRS Rev. Proc. 2013-14 format requirements: 18-point type, specific statutory language, taxpayer signature.
Internal Revenue Code §7216 and companion §6713 make it a federal offense for a US tax preparer to knowingly or recklessly disclose tax return information without the taxpayer's written consent (§7216) or to use that information for purposes unrelated to preparation (§6713). Criminal penalties under §7216 include fines up to $1,000 per occurrence and up to one year imprisonment. Civil penalties under §6713 are $250 per unauthorized disclosure, up to $10,000 annually.
Treasury Regulation §301.7216-3(a)(3)(i)(B) specifically addresses disclosure to preparers located outside the United States. A US tax preparer cannot disclose a taxpayer's tax return information to a preparer physically located outside the United States unless the taxpayer provides written consent before the disclosure occurs.
Per IRS Revenue Procedure 2013-14, an offshore-disclosure §7216 consent must:
The "12-point Times New Roman or larger" requirement is often rendered as 18-point type in practice because many preparers prefer the clarity and reduce the risk of the type size being non-compliant on a particular printer. Either meets the regulation; 18-point is conservative.
The following template is based on the statutory language and IRS Rev. Proc. 2013-14 requirements. Adapt to your specific firm and preparer details. Have your counsel review before use.
CONSENT TO DISCLOSURE OF TAX RETURN INFORMATION
Federal law requires this consent form to be provided to you. Unless authorized by law, we cannot disclose your tax return information to third parties for purposes other than the preparation and filing of your tax return without your consent. If you consent to the disclosure of your tax return information, Federal law may not protect your tax return information from further use or distribution.
You are not required to complete this form to engage our tax return preparation services. If we obtain your signature on this form by conditioning our services on your consent, your consent will not be valid. Your consent is valid for the amount of time that you specify. If you do not specify the duration of your consent, your consent is valid for one year from the date of signature.
This consent to disclose may result in your tax return information being disclosed to a tax return preparer located outside of the United States, including all states of the United States. If you consent to the disclosure of your tax return information, your tax return information may not be protected by the same laws that protect your information within the United States.
I, _________________________________ [taxpayer name], authorize _________________________________ [US preparer firm name] to disclose to _________________________________ [name of offshore preparer or firm, located in _________ country] all tax return information necessary for the preparation and filing of my _____ [tax year] federal and state income tax returns.
Duration of consent: _____ year(s) from date of signature, or indefinite until revoked in writing.
Signature: _________________________________ Date: _________________
If you believe your tax return information has been disclosed or used improperly in a manner unauthorized by law or without your permission, you may contact the Treasury Inspector General for Tax Administration (TIGTA) by telephone at 1-800-366-4484, or by email at [email protected].
For firms preferring to handle §7216 consent within the engagement letter rather than as a standalone form, the following language can be added as a dedicated paragraph. The section containing this language must be in at least 12-point Times New Roman; other sections of the engagement letter may use smaller type.
DISCLOSURE TO TAX RETURN PREPARER LOCATED OUTSIDE THE UNITED STATES (Internal Revenue Code §7216)
Federal law generally prohibits us from disclosing your tax return information to a tax return preparer located outside the United States without your written consent. In connection with the preparation of your _____ [tax year] tax return(s), we may disclose your tax return information to _________________________________ [offshore preparer name/entity], located in _________ [country]. By signing this engagement letter, you are providing written consent to this disclosure. You are not required to provide this consent to engage our services; however, if consent is not provided, your return will be prepared entirely by staff located within the United States, which may result in a higher fee.
This consent is valid for a period of _____ year(s) from the date of your signature below, unless earlier revoked in writing. Your tax return information may not be protected by the same laws that protect your information within the United States. If you believe your tax return information has been disclosed or used improperly, you may contact the Treasury Inspector General for Tax Administration at 1-800-366-4484 or [email protected].
Criminal penalties under §7216: up to $1,000 per unauthorized disclosure plus up to one year imprisonment. Civil penalties under §6713: $250 per unauthorized disclosure, up to $10,000 per year. State-level penalties may apply additionally. State CPA boards can also discipline licensees for §7216 violations as a matter of professional conduct.
For the broader compliance framework including AICPA §1.150.040 and state-specific rules, see the related templates below. For offshore tax preparation service details, see our offshore tax preparation page.
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