Section 7216 and the Rules for Sharing Taxpayer Information
#35

Section 7216 and the Rules for Sharing Taxpayer Information

Jeremy opens a two-part series on taxpayer confidentiality by breaking down IRC Sections 7216 and 6713, the rules that govern how tax professionals can use and disclose tax return information. Using a case study of a solo firm owner weighing seasonal hires, an outsourced bookkeeper, and a possible merger, he walks through what actually counts as tax return information, when taxpayer consent is required, and the exceptions that let firms share data without it. He also covers what a tax return preparer and auxiliary service actually mean under the regulations, since those definitions decide whether consent is even needed in the first place.

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  • (00:00) - Client Data Privacy
  • (03:26) - Case Study Grady
  • (06:45) - 7216 Overview
  • (10:24) - Key Definitions
  • (19:37) - What Counts as Info
  • (26:12) - Use vs Disclosure
  • (30:18) - Consent Rules
  • (37:44) - Firm Sharing Limits
  • (43:33) - Other Exceptions
  • (47:35) - Applying to Grady
  • (53:50) - Key Takeaways
  • (55:54) - Next Episode AI

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https://www.steadfastbookkeeping.com

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