New use forms

[thomtax]

Do I understand this correctly? If you are filing through your software provider, instead of directly to the IRS, it is necessary to have a disclosure authorization form, otherwise the client must file by mail.

LT

[dkss]

just received this today

from NATP weekly newsletter:
Navigating the New Disclosure Rules

There is a tremendous amount of confusion over what disclosures are required by the new regulations under Sec. 7216, Disclosure or Use of Tax Information by Preparers of Returns. To set the record straight, according to the IRS website, "Generally, tax preparers must obtain the signed consent of the taxpayer on paper or electronically before they can disclose taxpayer return information to anyone or use it for any purpose other than in the context of preparing and filing the return." (Emphasis added).

Disclosure of tax return information among electronic filers for purposes of preparing a return is permitted among those accepted by the IRS in any electronic return filing program with the exception of returns that are filed under the FIRE (Filing Information Returns Electronically) Program. A return originator who passes on tax return information to an intermediate service provider or a transmitter for the purpose of having the electronic return formatted and transmitted to the IRS has made a permitted disclosure of return information for purposes of preparing a return [Reg §301.7216-2(d)(1) ; Reg §301.7216-2(h) (3/27/74) ; IRS Pub 1345, (11/2004), p. 46 ; Rev Proc 2007-40, Sec. 6.01(2); Rev Proc 2000-24, Sec. 6.01(2)].

The bottom line is that return preparers that are not releasing or using taxpayer information do not have additional disclosure or signature requirements for tax preparation and e-filing operations, as long as the client data is not transmitted outside the United States. For many individual tax returns, preparers should have clients sign Form 8879 and e-file the returns as usual.


Hope that helps you!

[thomtax]

Yes - Thanks. I have spent hours reading different things and opinions (both informed and uninformed) and could not spot the part about software transmitters.

LT

[taxea]

elf service providers do not have access to the actual return. The electronic transfer between the preparer to the provider to the taxing authority is the DCN number. taxea