Tax information and documents are protected by various federal, state and local laws. Accordingly, CPAs and other tax preparers are forbidden from disclosing client's tax information without explicit authorization by client. Among these confidentiality laws is Internal Revenue Code sections 7216 that imposes criminal penalties of up to $1,000 of fine and up to one year of imprisonment for each violation.
Accordingly, we would happily accommodate your request to forward tax information and documents to third party after receiving your written authorization to disclose your tax information. A simple disclosure authorization form can be found here. Additional information about the Internal Revenue Code section 7216 can be found here.
Some tips on completing the disclosure authorization form:
- Examples of "purpose for disclosing information" are "I am applying for a home loan." or "I am applying for business line of credit." A simple one line description would suffice.
- If we have not been provided already, please let us know contact person's phone number or email address in the disclosure recipient section.
- The default duration is one year unless you specify a longer or shorter duration. Six months usually would be sufficient.
- If you filed personal tax returns with your spouse, both you and your spouse should sign the form.
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