An IRS 7216 consent template is a signed, dated, plain-language document in which a taxpayer agrees that their tax return preparer may disclose their tax return information to a named recipient for a stated purpose, including a preparer located outside the United States. Revenue Procedure 2013-14 fixes the wording and format for Form 1040 clients. This guide gives the structure.
This is a process guide from an outsourcing provider, not legal advice. Have your firm’s counsel review the final wording before it goes to a client.
What does section 7216 actually prohibit?
Section 7216 makes it a crime for anyone in the business of preparing tax returns to knowingly or recklessly disclose tax return information, or use it for any purpose other than preparing the return, without authorization (26 U.S.C. 7216). Tax return information means anything the client gives you, or you produce, in connection with the return: the documents, the numbers, the return itself, even the fact that the person is your client.
The regulations set out disclosures that are allowed without consent. Passing information to another preparer located in the United States for preparation work is one of them (26 CFR 301.7216-2). Passing it to a preparer located outside the United States is not, and requires the taxpayer’s written consent under 26 CFR 301.7216-3 (26 CFR 301.7216-2). That includes your own employees if they sit outside the country.
When is consent required, and when is it not?
| Situation | Consent needed? | Authority |
|---|---|---|
| Your US staff prepare the return in your office | No | 26 CFR 301.7216-2 |
| A US-based outsourcing firm does data entry or workpapers, no advice | No | 26 CFR 301.7216-2 |
| A preparer located outside the United States does any preparation work | Yes, written, before disclosure | 26 CFR 301.7216-2 and 301.7216-3 |
| Your own employee works from outside the United States | Yes | 26 CFR 301.7216-2 |
| The client’s SSN is sent to the offshore preparer | Yes, plus an adequate data protection safeguard on both sides, or mask the SSN | 26 CFR 301.7216-3 |
| Using return data to offer the client another service | Yes, a separate consent to use | 26 CFR 301.7216-3 |
Timing is strict. Consent must be signed before the information is disclosed, and a consent obtained afterwards does not cure the disclosure (26 CFR 301.7216-3). The practical rule for an offshore engagement is that no client file moves until that client’s signed consent is on file and logged.
What must a 7216 consent contain?
The regulation lists the required content. Every consent must name the tax return preparer and the taxpayer, identify the specific tax return information to be disclosed, state the purpose, name the recipient, and be signed and dated by the taxpayer (26 CFR 301.7216-3). It must be knowing and voluntary, and the preparer must give the taxpayer a copy at the time of signing (26 CFR 301.7216-3).
For Form 1040-series taxpayers, Rev. Proc. 2013-14 adds format and wording. The consent must be on paper 8.5 by 11 inches or larger, or on its own computer screens, and the text must pertain solely to the disclosure being authorized (IRS, 2013). Type must be at least 12-point on paper; electronic text must be at least the size of the site’s normal body text with sufficient contrast (IRS, 2013). If the consent does not state a duration, it lasts one year from the signature date (IRS, 2013).
Consents to disclose and consents to use must be separate documents. Several disclosures may be listed in one document only if the taxpayer can affirmatively select each one (IRS, 2013). Every consent must carry the mandatory statements set out below, word for word.
For electronic consents, the taxpayer must take an affirmative action to sign, and the firm must give a copy or let the taxpayer save or print the completed consent at the time of signing (26 CFR 301.7216-3; IRS, 2013). Rev. Proc. 2013-19 amended parts of the 2013-14 procedure, so read both before finalizing your form (IRS, 2013).
Template: consent to disclose tax return information to a preparer outside the United States
The template shows the structure and the mandatory language for a Form 1040-series client where the offshore preparer will receive the client’s SSN under an adequate data protection safeguard. Text in square brackets is yours to complete. Text in quotation marks is prescribed by Rev. Proc. 2013-14 and should not be edited. Do not add marketing text, engagement terms or anything unrelated to this disclosure.
Consent to disclosure of tax return information
Preparer: [Firm legal name, address] Taxpayer(s): [Client name(s) as shown on the return] Tax year(s): [For example: 2026 Form 1040 and related schedules, and any amended return for that year]
“Federal law requires this consent form be provided to you. Unless authorized by law, we cannot disclose your tax return information to third parties for purposes other than those related to the preparation and filing of your tax return without your consent. If you consent to the disclosure of your tax return information, Federal law may not protect your tax return information from further use or distribution. You are not required to complete this form. Because our ability to disclose your tax return information to another tax return preparer affects the tax return preparation service(s) that we provide to you and its (their) cost, we may decline to provide you with tax return preparation services or change the terms (including the cost) of the tax return preparation services that we provide to you if you do not sign this form.”
Purpose of disclosure: To allow [Recipient legal name] to assist [Firm name] in preparing your tax return(s) for the year(s) above, including organizing source documents, preparing workpapers and entering draft returns. [Firm name] will review and sign your return.
Recipient: [Recipient legal name and country], a tax return preparer located outside the United States.
Information to be disclosed: [Describe specifically. For example: your Forms W-2, 1099 and 1098, brokerage statements, prior-year return, and your Social Security number, as needed to prepare the return.]
“This consent to disclose may result in your tax return information being disclosed to a tax return preparer located outside the United States, including your personally identifiable information such as your Social Security Number (“SSN”). Both the tax return preparer in the United States that will disclose your SSN and the tax return preparer located outside the United States that will receive your SSN maintain an adequate data protection safeguard (as required by the regulations under 26 U.S.C. section 7216) to protect privacy and prevent unauthorized access of tax return information. If you consent to the disclosure of your tax return information, federal agencies may not be able to enforce United States laws that protect the privacy of your tax return information against a tax return preparer located outside of the United States to whom the information is disclosed.”
Duration: This consent is valid until [date]. If no date is entered, it is valid for one year from the date signed.
“If you believe your tax return information has been disclosed or used improperly in a manner unauthorized by law or without your permission, you may contact the Treasury Inspector General for Tax Administration (TIGTA) by telephone at 1-800-366-4484, or by email at complaints@tigta.treas.gov.”
Taxpayer signature: ______________________ Date: ____________ Spouse signature (joint return): ______________________ Date: ____________
If the offshore preparer will not receive the SSN, replace the long outside-the-United-States paragraph with the shorter prescribed statement: “This consent to disclose may result in your tax return information being disclosed to a tax return preparer located outside the United States.” (IRS, 2013). Then mask or redact the SSN on every document before it leaves (26 CFR 301.7216-3).
For business returns such as Forms 1120, 1120-S and 1065, the Rev. Proc. 2013-14 format does not apply, but the regulation’s content and timing requirements do. Most firms use the same structure without the prescribed 1040 paragraphs, signed by an officer or partner, and counsel should confirm the approach.
What are the most common mistakes?
The first is timing: collecting consent after the offshore team already has access, or assuming one consent rolls forward. The second is bundling: putting the consent inside the engagement letter, or combining a consent to disclose with a consent to use. The third is the SSN: sending unmasked documents without confirming the safeguard on both sides.
The fourth is scope: naming “our service providers” rather than a specific recipient, or “your tax information” rather than the specific information. The fifth is record-keeping: no log showing which clients signed, when, and for which years, so a reviewer cannot release a file with confidence.
How does the consent process work with an outsourcing provider?
A provider cannot obtain consent for you, because the consent runs between your firm and your client. What a provider should do is give you a template that already carries the mandatory statements, a tracking log by client and tax year, and a release rule: no file is opened by the offshore preparer until the log shows a signed consent. That is the process behind our tax preparation support, which is preparation support: your firm reviews and signs.
The consent is one part of a wider compliance set. The AICPA third-party notice goes in the engagement letter, the FTC Safeguards Rule plan names the provider and its controls, and IRS Publication 4557 gives the working checklist (IRS, 2026). Our compliance page sets out how those pieces fit, our accounting firm services describe the pod model, and the glossary entry on section 7216 is the one-paragraph version to share with staff.
Pricing depends on volume and scope, so we send a custom quote within 1 business day.
Sources
- IRS, Section 7216 information center: irs.gov
- IRS, Internal Revenue Bulletin 2013-3 (Rev. Proc. 2013-14): irs.gov
- IRS, Internal Revenue Bulletin 2013-11 (Rev. Proc. 2013-19): irs.gov
- Cornell LII, 26 CFR 301.7216-3: law.cornell.edu
- Cornell LII, 26 CFR 301.7216-2: law.cornell.edu
- Cornell LII, 26 U.S.C. 7216: law.cornell.edu
- Cornell LII, 26 U.S.C. 6713: law.cornell.edu
- IRS, Publication 4557, Safeguarding taxpayer data: irs.gov
Frequently asked questions
What must an IRS 7216 consent template include?
The names of the preparer and the taxpayer, the specific tax return information to be disclosed, the purpose, the recipient, the duration, the taxpayer's signature and the date (26 CFR 301.7216-3). For Form 1040 clients it must also carry the mandatory statements from Rev. Proc. 2013-14, including the statement that information may go to a preparer outside the United States and the TIGTA contact statement (IRS, 2013). The template in this guide follows that order.
Can 7216 consent be included in the engagement letter?
Not as a buried clause. The consent must be a document whose text pertains solely to the disclosure or use being authorized, on 8.5 by 11 inch paper or larger in at least 12-point type, or on its own screens electronically, and it must be signed and dated by the taxpayer (IRS, 2013). The engagement letter can carry the AICPA third-party notice; the 7216 consent should be a separate signed document.
How long does a 7216 consent last?
For the period the consent states. If no period is stated, a Form 1040 consent is valid for one year from the date the taxpayer signs it (IRS, 2013). Most firms set the duration to cover the return year plus amendments, and re-collect annually with the engagement letter. A consent cannot be extended retroactively, so a lapsed consent means a fresh signature before the next disclosure.
Does electronic signature work for 7216 consent?
Yes. A consent furnished electronically must appear on its own screens, in text at least as large as the site's normal body text with adequate contrast, and the taxpayer must take an affirmative action to sign, with a copy provided or made available to save or print at the time of signing (IRS, 2013; 26 CFR 301.7216-3). Practice-management and e-signature tools used by most firms can meet this if the form is set up correctly.
What happens if a firm sends returns offshore without 7216 consent?
A knowing or reckless disclosure is a misdemeanor with a fine of up to $1,000 per violation, or $100,000 where identity theft is involved, and up to a year in prison (26 U.S.C. 7216). A civil penalty of $250 per disclosure also applies, capped at $10,000 a year, rising to $1,000 and $50,000 in identity theft cases (26 U.S.C. 6713). Beyond penalties, the disclosure breaches the AICPA confidentiality rule and most state board rules.
Sources
- IRS, Section 7216 information center
- IRS, Internal Revenue Bulletin 2013-3, including Rev. Proc. 2013-14 (consent format and mandatory statements)
- IRS, Internal Revenue Bulletin 2013-11, including Rev. Proc. 2013-19 (amending Rev. Proc. 2013-14)
- Cornell LII, 26 CFR 301.7216-3, disclosure or use permitted only with the taxpayer's consent
- Cornell LII, 26 CFR 301.7216-2, permissible disclosures or uses without consent of the taxpayer
- Cornell LII, 26 U.S.C. 7216, disclosure or use of information by preparers of returns
- Cornell LII, 26 U.S.C. 6713, disclosure or use of information by preparers of returns (civil penalty)
- IRS, Publication 4557, Safeguarding taxpayer data
