CPE Course IRS Section 7216 - ClientWhysCPE.com

Delivery Method: Self-Study

This course covers the new Sec. 7216 strict disclosure regulations that became effective on January 1, 2009. These regulations were written to curtail the undisclosed transfer of taxpayer data to third parties, especially out-of-the-country transfers, and to protect a taxpayer's data from being used to market other products. However, the language is such that the disclosure requirement even applies when additional tax services are provided (such as tax planning services). Caution: This course was prepared for domestic tax preparation and only provides limited information dealing with disclosing tax information outside the U.S. and its possessions.

Final Exam Grading Policy - Course material must be completed within 12 months of purchase. A score of 70% or better is needed for passing. The completion certificate will be automatically generated by the system.

This text is divided as follows:

Background 3
New law & Stuff � Rev Rul 2010-4 3
Related IRS Publications & Forms 3
Criminal Statute 4
Who is Subject to Sec. 7216 4
Effect of Gramm-Leach-Bliley Act 4
Consents 5
Consent Must Be Obtained Before Providing Finished Return 5
Consent Cannot Be Retroactive 5
Consent Must Be Knowing and Voluntary 5
Client Declines Consent � No Repeat Request Allowed 5
Use Versus Disclosure � Require Separate Consents 5
Notice 2009-13 5
Commonly Encountered Situations and Issues 6
Related Taxpayer Disclosures 6
Disclosures to another Preparer within the Same Firm 6
Preparer-to-Preparer Disclosures (Not Within the Same Firm) 6
Substantive Determination 6
Contractors 7
Written Notice 7
Legal Request for Return Data 7
Review Questions � Section One 8

Disclosure for Use in Securing Legal Advice, Court Proceedings, etc 10
Disclosures to Professional Liability Insurance Carriers 10
Special Exception for CPAs and Attorneys 10
Corporate Fiduciaries 10
Disclosure to Taxpayer's Fiduciary 10
State or Local Tax Return Audit 11
E-file Provider 11
Payment for Tax Preparation Services 11
1040 Disclosures and Consents 11
Tax Return Data Acquired Before 1/1/09 11
Payroll Company & Employer 11
Data Mining and Statistical Analysis 11
Shredding Services 11
How You Might Be Scrutinized 11
Retention of Records 12
Lists for Solicitation of Tax Return Business 12
Disclosure or Use of Information for Quality or Peer Reviews 12
Disclosure to Report the Commission of a Crime 12
Disclosure of Tax Return Information Due to a Tax Return Preparer's 13
Incapacity or Death 13
Sending Thank You Notes After the Return Has Been Prepared 13
Sending Newsletters, E-mails, Etc. 13
Third-Party Newsletter Service Providers 13
Informing Clients of Tax Law Changes 13
Sending K-1s 13
Developing Your Consent to Use or Disclose Forms 14
Consent Format Requirements 14
Required Information and Mandatory Language 14
Use Consent � All Situations 15
Disclosure Consent - Other Than Tax Return Preparation 15
Disclosure Consent � Substantive Advice 15
Disclosure Consent � Sample Loan Application Disclosure 16
Best Practice Recommendation 16
Disclaimer � Self-Employment Verification 17
Disclosure Consent � Spouses 17
Engagement Letter 18
Review Questions 19

By completing this course, the student will be able to comply with disclosure and use consents per the requirements of Sec. 7216, Regulation �301.7216 and Revenue Procedure 2008-35. Caution: This course was prepared for domestic tax preparation and only provides limited information dealing with disclosing tax information outside the U.S. and its possessions.

CTEC
NASBA
IRS - Enrolled Agents

CPE00810 - Section 7216 Disclosures and Consents Online CPE