§7216 — Title 26 Internal Revenue Code | U.S. Code

Summary

If you prepare federal income tax returns for pay or as a business, you must not knowingly or recklessly share or use a client's tax information for anything other than helping prepare that return. There are a few narrow exceptions. Sharing is allowed if other tax laws say so, if a court orders it, if the information is needed to prepare the client’s state or local tax or estimated tax forms, or if rules made by the Secretary permit it (for example, for quality checks or peer reviews).

Title 26, §7216

Internal Revenue Code — Source: USLM XML via OLRC

(a)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,

(b)(1)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)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)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.

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].”

§7216 Disclosure or Use of Information by Preparers of Returns

Summary

Title 26, §7216

Notes & Related Subsidiaries

Editorial Notes

Amendments

Regulations

Regulations

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

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Amendments

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