Consent to Release to Third Party

[geekgirldany]

I had a bank call today wanting to talk to me about a client's tax return.

First, I did not recognize the name and I can not find it in my tax program. I am pretty good with names and remembering people.
Second, the person I talked to kept saying they have a release signed. Then something about a fbar or bar release? What is that?
Third, I never said whether the person was a client or not.

I told him the client would have to call me and sign my release to speak to the bank. He kept on repeating about how they have a release and they would fax it to me. I told him to have the client call me and I would talk to the client about it. He seemed to get really ticked off.

Did I handle that correctly? You always get a written consent to talk to a third party correct?
This person at the bank was wanting me to just get verbal consent. Seemed strange because I usually have a client call me first then the bank.

Since I have never heard of the client it has got me wondering why I was listed as the preparer.
Is there a way to look up if your PTIN or EFIN has been used on tax returns you haven't prepared?

[JohnH]

It sounds very suspicious, but bankers & loan brokers aren't always the brightest bulb in the tree. In any event, you did the right thing. I suppose you could have told them to fax or email a copy of their "release" to you, but even then you should not give them any info without client permission in the proper format, generated by you. And as far as I'm concerned, I don't even do that. I send whatever the bank needs to the client - if they want the bank to have it then it's up to them to furnish it.

One banker told me they needed their info from a third disinterested party.
I told them I don't do that.
They told me they might suggest that the client should look for another accountant.
I told them that after that comment, I'm definitely going to suggest that the client look for another bank.

[geekgirldany]

That is a good idea on furnishing the information to the client instead of the bank directly.
The bank was wanting to ask me questions on the tax return. Never really had that happen. I've got the self employed question before.

I should have got their release just to see exactly the name of the person.... but something just did not seem right.

The bank asked me if I would talk after the client talked to me.... I told them after I talk to the client and get my consent signed I would think about it. There was a lot of huffing and puffing at that.

I've had that happen with a client before on getting another accountant. Banker was wanting me to say the client was financially stable to take out money from a corp. I told the client that I could not say that. Bank called and told me the client would not get the loan unless I put it writing. I told them "I guess they will lose the loan then". Client called kept asking for me to do it then said the Banker told them he has a CPA friend that would do it and could start preparing their tax returns. I told them good luck. Clients came back, did not get the loan as the CPA friend would not do the letter either ha ha.

[Y2KEA]

I tell them I can neither confirm nor deny the borrower name at this time (as required by IRS code). I tell them to email me the "release signed" which they have. I tell them I will then review my files to ascertain if the borrower is an actual client. I do nothing by phone. Email only. I want a documented trail. I have had lenders lie to the potential borrower in the past about my "refusal" to comply with lender demands.

If this is a valid request, I will usually have been forewarned by the client. I review the "release signed" for adherence to sec 7216 requirement as specified by IRS code. If it meets the requirement I then tell the lender clowns any info they request will be sent to the borrower to forward to the lender if all requirements are met.

[brobey]

checking your PTIN record

To access “Returns Filed Per PTIN” information, follow these steps:
1) Visit /ptin and log into your PTIN account.
2) From the Main Menu, find “Additional Activities.”
3) Under Additional Activities, select “View Returns Filed Per PTIN.”
4) A chart labeled Returns Per PTIN should appear.
5) A count of individual income tax returns filed and processed in the current year will be displayed.

You must be an EA, CPA, Attorney or AFSP in order to see your returns. If you have fewer than 50 returns filed under you PTIN you wont see any data.

Hope this helps.

[taxea]

We have had this question posted yearly for several years now. The consensus of opinion is DON'T DO IT. You don't audit your clients businesses. The banks are trying to transfer any liability to you.

[geekgirldany]

Returns filed per PTIN is not showing up under Additional Activities for me. Hmmm... I will have to find out about that.

Yeah I am probably the one that posts the question every year

I believe what was unusual for me is that the bank just called me. My clients have always called me first. Plus I did not recognize or find the name in my files. Somewhat concerning as I am not sure what happened. Should have got the release from the bank just for the sake of having it.

[TAXNJ]

OP you addressed a similar issue on 8-21-15 post

http://forum.thetaxbook.com/showthread.php?25830-Comfort-Letters-for-Lenders&highlight=Comfort+letters

[taxea]

I had a bank call today wanting to talk to me about a client's tax return.

First, I did not recognize the name and I can not find it in my tax program. I am pretty good with names and remembering people.
Second, the person I talked to kept saying they have a release signed. Then something about a fbar or bar release? What is that?
Third, I never said whether the person was a client or not.

I told him the client would have to call me and sign my release to speak to the bank. He kept on repeating about how they have a release and they would fax it to me. I told him to have the client call me and I would talk to the client about it. He seemed to get really ticked off.

Did I handle that correctly? You always get a written consent to talk to a third party correct?
This person at the bank was wanting me to just get verbal consent. Seemed strange because I usually have a client call me first then the bank.

Since I have never heard of the client it has got me wondering why I was listed as the preparer.
Is there a way to look up if your PTIN or EFIN has been used on tax returns you haven't prepared?

My advise...You did the right thing. Having said that I would not supply any information with or without a release. Neither confirm or deny you have records for the client. Tell them you don't audit your clients returns so you cannot verify anything for them.
If they have a signed release for the information why didn't they send you a copy?

[geekgirldany]

http://forum.thetaxbook.com/showthre...omfort+letters

Yeah I did I am use to sending comfort letters but I have always been told by the client before hand to expect a call. That is my memory anyways.
Like I said the thing that threw me was the bank just calling out of the blue and being very aggressive about the situation. Plus the banker saying they already had a signed consent. I know in my ethics class I learned to get my own consent from the taxpayer first.

I was just wanting confirmation from other members of the forum that my thinking was correct.

TaxEA: My information is on my website so they could have easily sent it to me. Still makes me wonder what was going on.

Thank you all for taking the time to read and answer my post.

[Rapid Robert]

I had a bank call today wanting to talk to me about a client's tax return. First, I did not recognize the name and I can not find it in my tax program.

There's your problem right there. Why did you answer that call? I get so many spam phone calls, I never answer unless I can tell who is calling from caller ID. If it's important, they'll leave a voice message. If a voice message inquires about a client you have no knowledge of, just delete it, problem solved.