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Title 26, Internal Revenue CodeRelease 119-110

§7216 Disclosure or Use of Information by Preparers of Returns

Title 26 › Subtitle F — Procedure and Administration › CHAPTER 75 — CRIMES, OTHER OFFENSES, AND FORFEITURES › Subchapter A — Crimes › PART I — GENERAL PROVISIONS › § 7216

Last updated Sep 22, 2026|Official source

Summary

Makes it a crime for people who run a business preparing federal income tax returns or who prepare such returns for pay to, on purpose or acting without concern for the risk, reveal or use any taxpayer information they get except for preparing the return. A person convicted can be fined up to $1,000 (or up to $100,000 in cases covered by section 6713(b)), jailed for up to 1 year, or both, and must pay prosecution costs. There are limits to the rule. Sharing is allowed if another part of the tax law permits it or a court orders it. Using the information is allowed to help prepare state or local tax returns and estimated tax forms for the same person. The Secretary can make rules that allow other disclosures or uses, for example for quality checks or peer reviews, under set conditions.

Full Legal Text

Title 26, §7216

Internal Revenue Code, Source: USLM XML via OLRC

(a)General rule
Any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of the tax imposed by chapter 1, or any person who for compensation prepares any such return for any other person, and who knowingly or recklessly—
(1)discloses any information furnished to him for, or in connection with, the preparation of any such return, or
(2)uses any such information for any purpose other than to prepare, or assist in preparing, any such return,
shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined not more than $1,000 ($100,000 in the case of a disclosure or use to which section 6713(b) applies), or imprisoned not more than 1 year, or both, together with the costs of prosecution.
(b)Exceptions
(1)Disclosure
Subsection (a) shall not apply to a disclosure of information if such disclosure is made—
(A)pursuant to any other provision of this title, or
(B)pursuant to an order of a court.
(2)Use
Subsection (a) shall not apply to the use of information in the preparation of, or in connection with the preparation of, State and local tax returns and declarations of estimated tax of the person to whom the information relates.
(3)Regulations
Subsection (a) shall not apply to a disclosure or use of information which is permitted by regulations prescribed by the Secretary under this section. Such regulations shall permit (subject to such conditions as such regulations shall provide) the disclosure or use of information for quality or peer reviews.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2019—Subsec. (a). Pub. L. 116–25 substituted “$1,000 ($100,000 in the case of a disclosure or use to which section 6713(b) applies)” for “$1,000” in concluding provisions. 1989—Subsec. (b)(3). Pub. L. 101–239 inserted at end “Such

Regulations

shall permit (subject to such conditions as such

Regulations

shall provide) the disclosure or use of information for quality or peer reviews.” 1988—Subsec. (a). Pub. L. 100–647 substituted “and who knowingly or recklessly” for “and who”. 1984—Subsec. (a). Pub. L. 98–369 struck out from introductory text “or declarations or amended declarations of estimated tax under section 6015,” after “chapter 1,” and struck out “or declaration” after “such return” in three places. 1976—Subsec. (b)(3). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 Amendment Pub. L. 101–239, title VII, § 7739(b), Dec. 19, 1989, 103 Stat. 2404, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [Dec. 19, 1989].”

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–647 applicable to disclosures or uses after Dec. 31, 1988, see section 6242(d) of Pub. L. 100–647, set out as an

Effective Date

note under section 6712 of this title.

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–369 applicable with respect to taxable years beginning after Dec. 31, 1984, see section 414(a)(1) of Pub. L. 98–369, set out as a note under section 6654 of this title.

Effective Date

Pub. L. 92–178, title III, § 316(c), Dec. 10, 1971, 85 Stat. 530, provided that: “The

Amendments

made by this section [enacting this section] shall take effect on the first day of the first month which begins after the date of the enactment of this Act [Dec. 10, 1971].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 7216

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110