Prior preparer not cooperating

[Bees Knees]

The question I have is suppose my client calls and says "I am sending my son/daughter or employee/other relative to pick up a copy of my return and bring to me", do I need something in writing to do that?

And the correct answer is, the reg does not give such an example.

Given the new era of imposing penalties on tax preparers for everything under the sun, without prior written consent to do so, I will not give a client's tax return to anyone other than the taxpayer or spouse who signs the return.

[Jiggers]

One more question, Bees Knees

For a joint return, do both taxpayers have to sign the Authorization to Disclose form?

Many times only one of the taxpayers is available to sign the form.

[Bees Knees]

For a joint return, do both taxpayers have to sign the Authorization to Disclose form?

Many times only one of the taxpayers is available to sign the form.

And the correct answer is, the reg does not say.

Neither Regulation Section 301.7216-1, 301.7216-2, or 301.7216-3 uses the term “spouse” or “joint return” in any of its definitions or examples.

Given the new era of imposing penalties on tax preparers for everything under the sun, without prior written consent from both the taxpayer and spouse to do so, I will not give a client's tax return to anyone other than the taxpayer or spouse who signs the return.

[Bees Knees]

Disclosure language

TTB 2008 Small Business edition, page SB1-5 provides the following information for purposes of these new disclosure rules:

Specific language. Requests must contain certain required language,
verbatim. The only change allowed is to use the preparer’s
name in place of “we” and “our.” Disclosures to a third party
not for the purpose of preparing the tax return must contain the
following.

“Federal law requires this consent form be provided
to you. Unless authorized by law, we cannot disclose,
without your consent, your tax return information to
third parties for purposes other than the preparation
and filing of your tax return. If you consent to the disclosure
of your tax return information, Federal law may
not protect your tax return information from further
use or distribution.

You are not required to complete this form. If we obtain
your signature on this form by conditioning our services
on your consent, your consent will not be valid. If
you agree to the disclosure of your tax return information,
your consent is valid for the amount of time that
you specify. If you do not specify the duration of your
consent, your consent is valid for one year.”

I suggest we all have one of these forms mass produced and given to each client this year prior to doing the return. Get both the taxpayer and spouse's signature. Explain that if they ever call in the future requesting a copy of their return sent to anyone other than themselves, they need to sign this now. Let them know that they do not have to sign the form, but that if they do not, there could be delays or problems in the future if they ever want you to send a copy of their return to any place, such as a mortgage company for refinancing purposes. It can't hurt to get these ahead of time and keep on file.

[BHoffman]

I require the TP to give the person picking up the return a signed "permission slip" that I keep. I require this even if it's Mom or Dad picking up the kids' returns.

[PIGLEE]

Quote:
Originally Posted by Bees Knees
(snipped)

But that is not what the reg says. The reg says you can’t disclose information without the taxpayers consent. We can still get consent after the client signed the return in cases where the client is the one calling us asking us to send a copy of his return someplace.

What we can’t do, according to the regulation, is call the client after the return is signed and ask for consent to use the tax return information for our own solicitation or other unrelated business purposes.

If we want to use the information for our own use, the written consent must be signed prior to the taxpayer signing the return. If the client wants us to disclose the information to a third party, the client can sign that kind of consent anytime, even after the return has been signed.

Bees Knees.
I see what you mean, I think,

From IRS Code

(b) Timing requirements and limitations —(1) No retroactive consent. A taxpayer must provide written consent before a tax return preparer discloses or uses the taxpayer's tax return information. Electronic Code of Federal Regulations: Page 2 of 4

I think the problem is is the above statement. Is IRS saying the we use the return when we file the return?

It is all VERY CONFUSING. But with 1,000.00 fine and 1 year in jail, I am going with the IRS interputation. AFTER ALL THEY ARE THE ONES ACCESSING THE PENTALIES.

[Uncle Sam]

It is all VERY CONFUSING. But with 1,000.00 fine and 1 year in jail, I am going with the IRS interputation. AFTER ALL THEY ARE THE ONES ACCESSING THE PENTALIES.

What's an "interputation"?
What's a "pentalies"?

[PIGLEE]

"PENALTIES" "INTERPERATION"

Sorry,I know I can't spell, miss the spell checker on forums.
BUT I AM GOOD WITH NUMBERS.

Are you sure you aren't my mother, or my High School boy friend?
Although neither were good with numbers, and you would have to be to be on this forum.

[Corduroy Frog]

E-mails

Would an e-mail message constitute "written authorization?"

If not, would this change if there were an electronic signature?

[Bees Knees]

It is all VERY CONFUSING. But with 1,000.00 fine and 1 year in jail, I am going with the IRS interputation. AFTER ALL THEY ARE THE ONES ACCESSING THE PENTALIES.

What do you think IRS interpretation is?

[PIGLEE]

What do you think IRS interpretation is?

See IRS Web Site ::: http://www.irs.gov/efile/article/0,,id=188398,00.html

This if from that site. :::

Q8 When and how does a tax return preparer obtain consent to disclose tax return information?

A8 Tax return preparers must obtain consent to disclose tax return information before returns are provided to the taxpayer for signature and before tax return information is disclosed. The rules for obtaining consents are found in Treas. Reg. 301.7216-3 and Revenue Procedure 2008-35.

[Bees Knees]

Q8 When and how does a tax return preparer obtain consent to disclose tax return information?

A8 Tax return preparers must obtain consent to disclose tax return information before returns are provided to the taxpayer for signature and before tax return information is disclosed. The rules for obtaining consents are found in Treas. Reg. 301.7216-3 and Revenue Procedure 2008-35.

And that means what to you? Can you get a signed consent from the taxpayer after the return is filed if the client wants you to send a copy to the mortgage company?

[Zee]

Is the other accountant a CPA?

If the prior accountant is a CPA, there are ethics rules for this situation. It doesn't matter whether he was paid, or not. If he is a CPA, I would have the client write a short note that unless the information is provided to you he (not you) will file a complaint with the State Board of Accountancy, or other group regulating CPA's. It will be a lot easier for the prior accountant to provide the information, then deal with the stack of letters from the Boards.

[Jiggers]

The way I read it...

And that means what to you? Can you get a signed consent from the taxpayer after the return is filed if the client wants you to send a copy to the mortgage company?

You must be a mind reader and your client must know months in advance that he will need this copy for you to send to a mortgage company, bank, etc.

Stupid. Where are all our professional organizations and why aren't they either protesting this or getting a correction from the IRS?

My response to my clients will be that I will give them a copy of the return and they can forward it to who knows where. And my fee is $1.00 per page for this extra copy of the return, one that they already have and can go have a copy made for a lot less.

[Skate1968]

Is the other accountant a CPA?


If the prior accountant is a CPA, there are ethics rules for this situation. It doesn't matter whether he was paid, or not. If he is a CPA, I would have the client write a short note that unless the information is provided to you he (not you) will file a complaint with the State Board of Accountancy, or other group regulating CPA's. It will be a lot easier for the prior accountant to provide the information, then deal with the stack of letters from the Boards.

Thanks for addressing my question, Zee.

The prior accountant is not certified. He's not much more than a peice of poop, IMO.

If he was a CPA or an EA, then heck, i'd certainly consider you're approach.