§6713 Disclosure or Use of Information by Preparers of Returns

Summary

People who prepare or help prepare federal income tax returns for pay must not share the taxpayer information they get for a return. They also must not use that information for any other reason besides preparing the return. Breaking this rule can bring a penalty of $250 per wrongful disclosure, up to $10,000 in total. If the disclosure or use is tied to someone stealing another person’s taxpayer identity (see section 6103(b)(6)), the penalty is $1,000 per violation with a $50,000 cap. The total limits are tracked separately for identity-theft cases and for other cases. The rules in section 7216(b) apply here. The usual IRS deficiency procedures in chapter 63 do not apply when the IRS assesses or collects these penalties.