New Rules Apply For Tax Preparers To Disclose Tax

Beginning January 1, 2009, Congress and the Internal Revenue Service (IRS) have established strict new rules which will govern the process when a tax preparer is asked to send tax information to someone other than their client.

 

In the past, it has always been that disclosing tax return information to anyone other than the taxpayer was prohibited, unless we received the client's permission, either written or verbal. We would then disclose tax return information to such parties as the client's bank, attorney, investment advisor, or others.

 

Under the new rules, a tax return preparer cannot disclose tax return information without first receiving the client's written consent. The IRS has recently issued the specific wording which is mandatory in the consent that is signed by the client.

 

We frequently receive requests from clients to send their tax return, for example, to their bank in order to support a loan. We will no longer be able to send this information without first receiving a completed, signed, and dated consent form which specifies the information to be sent, the purpose of its use, and the person to whom it should be sent. A blank consent form is available in the tax or resource area on our website at www.wipfli.com.

 

Congress and the IRS are concerned about protecting your privacy, and so are we. Since the potential penalties for not following the new rules are significant, we are certain you will understand the need to follow this process.

 

Please contact your Wipfli account executive for any questions on completion of the new form or on this process.