What is Disclosure of taxpayer information?
In short
Tax return preparers may not use or disclose information from a taxpayer's return for any other purpose without the taxpayer's written consent, apart from listed exceptions, such as quality or peer reviews and court orders.
Key takeaways
- Knowing or reckless violations can be a criminal misdemeanor.
- A civil penalty applies to each improper disclosure or use.
- Consent must be specific and signed before the information is used or disclosed.
Where it's tested
REG: Circular 230 & Practitioner Ethics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A CPA discovers that a client's previously filed return contains a material error. Under Circular 230, what must the CPA do?