Glossary
IRC §7216
Definition
IRC §7216 makes it a crime for tax return preparers to knowingly or recklessly use or disclose tax return information without consent, outside permitted purposes. Treasury regulations set the consent requirements.
How IRC §7216 works
A calculator enquiry from a prospect isn't tax return information, but once a client engages a preparer, using return data for other services, such as marketing advisory products, generally requires written consent.
Firms should keep lead data and return data processes distinct.
Why it matters to a firm
It shapes how preparers can cross-sell planning services to existing clients.
Calculators that use IRC §7216
Questions about IRC §7216
Is a calculator lead tax return information?
Not by itself.
Do I need consent to cross-sell?
Using return information for other services generally requires consent.
Who does it apply to?
Tax return preparers.
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Related terms: Circular 230
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