Disclosure Authorization

[dtlee]

There is no specific form required by the IRS for this scenario.

I agree with jimmcg that you define the policy in this situation. Due diligence is required to avoid knowingly and recklessly disclosing information to others without prior client consent. Hence, it is easier if you just give the information to the client.

If you do decide to accommodate the client request, you need to be careful. If you mail out the returns, you could recklessly put the wrong label on the envelope. You also need to confirm (and document in your files how you did this) that this was a valid request from your client and not some form of identity theft. You should also somehow confirm any address they give you with the intended recipient (and again document how you did this) so that you don't simply rely on information from the client.

You could create a form based on the forms you use for §7216 disclosure, but they cannot be the same forms and do not require the specific IRS wording (like the part about it being optional and how to turn you in to TIGTA) since those are only valid for scenarios where you are requesting pemission to disclose client information. Also, you are not allowed to request permission like that once the return is complete and signed (clients are not bound by these rules and are allowed to make requests any time they feel like it...though it is you who needs to agree in those situations).

Having an actual §7216 disclosure form signed now for two prior year returns would seem to document that you have violated the requirements of §7216 and requested this permission after the returns were done and signed.

[jimmcg]

My own policy is to simply give the new copy to the client and the client can give it to whomever they wish. Don't get involved in giving out copies of client tax returns to third parties. The client is perfectly capable of doing that themselves.

[Skeemo]

Disclosure Authorization

Taxpayer (my client) emailed me asking me to send copies of his past 2 years returns to another person - for his credit application, I think.

[S T]

More Info

And what third party?

As Dtlee stated in his post - depends

If Lender for refinance - do a search on the board - we just had a recent thread on that issue - which upsets all of "us" that the Lenders want us to cover their "backside" - The lender's have access with borrower's authorization to obtain tax returns filed.

I believe this is the latest thread http://www.thetaxbook.com/forums/sho...ghlight=lender

Sandy

[dtlee]

It depends on the context of this request.

Are you asking for permission to disclose the tax return information to the third party or is this something requested by the taxpayer?

Is this for a tax return already completed and signed or are you asking about how to obtain such authorization for returns that have not yet been completed?

[Skeemo]

Can someone point me to the letter or form that we must have a client sign before providing copy of clients tax return to third party?