1. Disclosure and Use of Information: Under Internal Revenue Code (IRC) section 7216 and its regulations, a tax preparer must obtain the taxpayer’s consent before disclosing tax return information. Section 7216 establishes a crime for any preparer to knowingly or recklessly disclose any information furnished in connection with preparing a client’s tax return.

2. Definition of Tax Return Preparer: For the purposes of IRC section 7216, a "tax return preparer" includes any person in the business of preparing tax returns, employees, or auxiliary service providers (such as e-file providers). "Tax return information" is any data furnished for or in connection with the preparation of a tax return.

3. Prohibited Actions: A disclosure is "the act of making tax return information known to any person in any manner whatever," and use is "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."