Client information

Disclosure and use are defined terms, and around them sits a consent-and-exception regime. Two separate provisions back it: one criminal, one civil. They are not the same thing and are not triggered the same way.

A scoped rule is not a rule about everyone

Several of these rules are written with a scope: they reach certain persons, certain conduct, or certain returns. The scope is part of the rule, so we state who a provision reaches rather than turning it into a rule about everyone.

What the authority says

Form 8821 authorizes any individual, corporation, firm, organization or partnership designated by the taxpayer to inspect or receive the taxpayer's confidential information for the type of tax and the periods listed.
Form 8821 does not authorize the designee to speak on the taxpayer's behalf, to execute a request to allow disclosure to a third party, to advocate the taxpayer's position, or otherwise to represent the taxpayer before the Internal Revenue Service.
To authorize an individual to represent the taxpayer, Form 2848 is used instead.
A person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of tax, and who knowingly or recklessly discloses information furnished in connection with the preparation of such a return, or uses that information for any purpose other than to prepare or assist in preparing the return, commits a misdemeanour.
The subsection does not apply to a disclosure or use permitted under regulations prescribed by the Secretary, or to a disclosure pursuant to an order of a court.
The offence carries a fine of not more than $1,000, or imprisonment of not more than one year, or both, together with the costs of prosecution.
A civil penalty applies to a person engaged in the business of preparing, or providing services in connection with the preparation of, returns who discloses or uses information furnished in connection with the preparation of a return other than to prepare or assist in preparing the return.
The civil penalty applies for each disclosure or use, subject to a stated annual maximum, and applies whether or not the disclosure or use was knowing or reckless.
The exceptions that apply for purposes of § 7216 apply for purposes of this section as well.
Tax return information means any information, including but not limited to a taxpayer's name, address or identifying number, that is furnished in any form or manner for, or in connection with, the preparation of a return.
Disclosure means the act of making tax return information known to any person in any manner whatever.
Use means any circumstance in which a tax return preparer refers to, or relies upon, tax return information as the basis to take or permit an action.
Tax return preparer for this purpose includes a person engaged in the business of preparing returns and a person who provides auxiliary services in connection with such preparation.
Disclosure of tax return information is permitted without consent pursuant to an order of a court, or pursuant to a subpoena or other process issued as the regulation describes.
Disclosure to an officer or employee of the Internal Revenue Service, and disclosure or use for purposes of preparing or assisting in preparing the taxpayer's return, are permitted as the regulation provides.
Disclosure to other officers or employees of the preparer's own firm for the purpose of preparing the return is permitted as the regulation provides.
Use of tax return information to prepare state and local returns, and other specific uses the regulation enumerates, are permitted without consent within the stated limits.
Unless a disclosure or use is permitted without consent, a tax return preparer may not disclose or use a taxpayer's tax return information prior to obtaining a written consent from the taxpayer.
The consent must be knowing and voluntary, must identify the intended purpose of the disclosure or use and the recipient, and must be signed and dated by the taxpayer.
A preparer may not request a consent to disclose or use tax return information for a purpose after the taxpayer has refused a request for consent for that purpose.
Conditioning the provision of services on the taxpayer's consent generally makes the consent ineffective.
Consents relating to individual income tax returns must satisfy the form and content requirements the Secretary prescribes in published guidance.

Every source on this page shows the body that issued it and the date we read it. The text behind this centre was last read on 2026-08-24.

Where this comes from

Instructions for Form 8821, Tax Information AuthorizationInternal Revenue Service. Read for: Form 8821 authorizes any individual, corporation, firm, organization or partnership designated by the taxpayer to inspect or receive the taxpayer's confidential information for the type of tax and the periods listed. Read on 2026-08-16.
26 U.S.C. § 7216 — Disclosure or use of information by preparers of returnsUnited States Code (GPO, govinfo). Read for: A person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of tax, and who knowingly or recklessly discloses information furnished in connection with the preparation of such a return, or uses that information for any purpose other than to prepare or assist in preparing the return, commits a misdemeanour. Read on 2026-08-16.
26 U.S.C. § 6713 — Disclosure or use of information by preparers of returnsUnited States Code (GPO, govinfo). Read for: A civil penalty applies to a person engaged in the business of preparing, or providing services in connection with the preparation of, returns who discloses or uses information furnished in connection with the preparation of a return other than to prepare or assist in preparing the return. Read on 2026-08-16.
26 C.F.R. § 301.7216-1 — Penalty for disclosure or use of tax return informationElectronic Code of Federal Regulations. Read for: Tax return information means any information, including but not limited to a taxpayer's name, address or identifying number, that is furnished in any form or manner for, or in connection with, the preparation of a return. Read on 2026-08-16.
26 C.F.R. § 301.7216-2 — Permissible disclosures or uses without consent of the taxpayerElectronic Code of Federal Regulations. Read for: Disclosure of tax return information is permitted without consent pursuant to an order of a court, or pursuant to a subpoena or other process issued as the regulation describes. Read on 2026-08-16.
26 C.F.R. § 301.7216-3 — Disclosure or use permitted only with the taxpayer's consentElectronic Code of Federal Regulations. Read for: Unless a disclosure or use is permitted without consent, a tax return preparer may not disclose or use a taxpayer's tax return information prior to obtaining a written consent from the taxpayer. Read on 2026-08-16.

What we are not saying here

Nothing on this page should be read as saying Information access only. It is never representation.; Creates no credential and no eligibility.; This is the criminal provision. The civil penalty for the same subject matter is § 6713 and the two are separate.; The statutory fine stated here is the amount in the statutory text and is not inflation-indexed within the section.; Civil penalty amounts are adjusted for inflation and must be stated with the year they apply to.; Distinct from the criminal offence in § 7216, with a different mental-state requirement.; Definitional. The permitted disclosures and uses are in § 301.7216-2.; An enumerated list. Anything outside it requires consent under § 301.7216-3 or is prohibited.; Each exception has conditions that must be checked against the current text before use.; A consent is effective only for the purpose and recipient it names.; A general engagement letter is not a § 301.7216-3 consent..

Where to go next

Whether the preparer definition reaches what I didConduct and compensation, in the order the text asks about them.
What a preparer identifying number isWhen the Code requires it, and what holding one does not settle.
How electronic filing participation worksA firm-level programme with a firm-level identifier.
Who may deal with the IRS for a taxpayerEligibility and authorization are two separate requirements.
What enrolled agent, CPA and attorney each meanSide by side, in the regulation's order, with no ranking.
Whether the practice rules reach mePart 10 is written with a scope, and the scope is part of the rule.
How IRS discipline works, and how to check itThe three sanctions, the process behind them, and what a published record does and does not say.
What due diligence requiresThe professional standard and the statutory requirement are not one rule.
What each preparer penalty reachesTrigger, standard and defence, stated separately for each one.
Where bookkeeping ends and preparation beginsWhat the federal definitions look at, which is not the job title.
How this centre works and where it stopsThe limits we hold ourselves to, including the state boundary.
The authority behind all of itEvery source, what it was read for, and the date it was read.

This is general education for people who work in tax, not legal or tax advice, and not a determination about anyone's status or obligations. Rules change and facts matter. For a decision about your own situation or your own practice, take advice from a licensed professional.