Client Consent Form - Future Solicitations

[rsandy]

Is anyone using a client consent form that they would be comfortable sharing that addresses the need for prior consent by a tax client before their tax information may be used for solictiation of other services offered by the preparer;ie investment services.

Thanks for your input.

[Bees Knees]

No, but....

I don’t solicit business from my clients for any purpose other than tax preparation. So I don’t have any specific forms in mind for you…but…

I don’t think that is our real problem here with these new rules.

The other day I had a prospective new client come into my office for a price quote. I will call him George. He was a referral from another client, who I will call Jim. George knew I did Jim’s tax return because Jim told George I was his tax preparer. The first thing George asks is what exactly do I do for Jim.

Did I need Jim’s consent to tell George exactly what I do for him? Specifically, we are talking an LLC taxed as a disregarded entity with employees. Thus, Schedule C, Form 941, 940, a new EIN for the LLC, etc., none of which Jim had previously explained to George.

Considering these new regulations that penalize tax return preparers for disclosing tax return information, I think I was walking on shaky ground just by giving George a price quote.

[rsandy]

Thanks for the response Beeknees. I am really surprised that with 68 "peaks" no one else has responded. Regarding your situation, I believe it might have been sufficient to simply say" I prepare Jim's personal and business tax returns."

[gkaiseril]

Have you read "Section 7216 Updated Rules for Tax Preparers (Updated 12/18/2008)", http://www.irs.gov/efile/article/0,,id=188390,00.html ?

There are 2 links at the botton of the page:

FAQs (Fequently Askes Questions) : http://www.irs.gov/efile/article/0,,id=188398,00.html
Aids to Preparing §7216 Consent Forms , http://www.irs.gov/efile/article/0,,id=201520,00.html

I would disclose each type of possible disclosure like research, banking products, broker services, etc and have the client select yes or no to each one or allow all.