The New Section 7216 Regulations – What Every Tax Professional Must Know About Protecting Taxpayer Information
Overview:In an effort to improve privacy protections, Congress passed Section 7216 which governs how tax return preparers may utilize and disclose confidential taxpayer information. The Treasury Department and the IRS recently issued new final regulations under Section 72216 that went into effect on January 1, 2009. These new regulations will have a broad impact on the use of consumer
- Section 7216 enacted in the 1970s
- Regulations were written to protect taxpayers in the 1970s
- The world has changed considerably since then
- Ways of doing business have changed considerably
- Electronic commerce has emerged
- The regulations need to reflect the current business environment
- The Statute
- Its history
- Application to preparers
- Criminal penalties
- The Regulations
- Permitted exceptions
- Additional exceptions
- Disclosures overseas
- Manner and form for obtaining consent to disclose or use tax return information
- Reasons for Revising Regulations
- Reflect and address modern tax preparation business models
- Include e-file providers in definition of tax return preparer
- Update taxpayer consent rules
- Enable taxpayers to control their own tax return information
- Protect taxpayers with limited financial literacy
- General Rule And Definitions
- The Prohibition On The Disclosure Or Use Of Tax Return Information By
Tax Return Preparers
- For A Purpose Other Than Preparing A Tax Return
- Relationship With Gramm-Leach-Bliley Act
- Tax Return
- Tax Return Preparer
- Tax Return Information
- Use Of Tax Return Information
- Disclosure Of Tax Return Information
- Request For Consent
- 7701(A)(36) – Definition Of Return Preparer Definition
- Disclosures Without Consent
- Disclosure Pursuant To Other Tax Code Provisions
- Disclosure To The Irs
- Updating Return Preparation Software
- Disclosures Within The Same Firm Within The U.S
- Information Received Outside Of The U.S
- Disclosure To Other Tax Return Preparers (Different Firm)
- Preparer-To-Preparer Disclosures
- Substantive Determinations Or Advice Affecting Tax Liability
- Disclosures To Contractors
- Disclosures With Respect To Related Taxpayers
- Compelled Disclosures –Order Of A Court, Administrative Order, Summons, Subpoena
- Disclosures For The Use In Securing Legal Advice, Treasury Investigations
And Court Proceedings
- Disclosures By Attorneys And Acountants
- Disclosures By Corporate Fiduciaries
- Disclosures To A Taxpayer’S Fiduciary
- Disclosures For State, Local And Foreign Tax Obligations
- Payment For Tax Preparation Services
- Retention Of Records
- Lists For Solicitation
- Statistical Information
- Quality Or Peer Reviews
- Disclosure To Report The Commission Of A Crime
- Disclosure Due To A Return Preparers Incapacity Or Death
- 7623 – Whistleblower Rules
- Disclosuires With Consent
- General Rule
- Taxpayer Consent
- Consent As A Condition To Tax Return Preparation Services
- Form Of Consent
- Name Of Taxpayer And Preparer
- Identification Of Intended Purpose Or Use
- Return Information
- Disclosure Outside Of The U.S.
- Individual Tax Returns (Form 1040) Versus All Other Returns
- Limitations On Consent
- No Retroactive Consent
- No Request For Consent After Return Has Been Prepared For Signature
- No Request For Consent After An Unsuccessful Request
- Presumed One-Year Consent Period
- Special Rules
- Multiple Consents – Disclosures V. Uses
- Disclosure Of Entire Return
- Copy Of Consent To Taxpayer
- July 2008 Temporary Regulations For Overseas Disclosures (-3T)
- Treasury Explanation
- Temporary Regulations
- 6694 – Return Preparer Standards
Who Should Attend:- Tax Preparers - CPA's - Tax Attorneys
As Director, Electronic Tax Administration and Refundable Credits, David Williams is leading the effort to redefine the IRS’s approach to electronic interactions with taxpayers and tax practitioners. David most recently served as the Director of Earned Income and Health Coverage Tax Credits and the Telephone Excise Tax Refund programs. From management, administration, and strategic engineering through relationship building with internal and external stakeholders, David’s business case approach is providing a new model for federal agencies that administer benefit programs to follow.
Previously, David was the Internal Revenue Service Chief, Communications and Liaison, from 1998 until 2003, where he served as the principal strategic advisor to the Commissioner of Internal Revenue. As a member of the IRS Executive Committee, he helped guide IRS strategic management in the formulation of tax administration policy, development of long-range organization objectives and implementation of internal business process reforms.
Prior to joining the IRS in 1998, David was the Deputy Assistant Secretary for Legislative Affairs – Tax and Budget. From 1996 to 1997, he was Legislative Director and tax policy advisor to U.S. Senator Bill Bradley. From 1990 to 1996, he was Assistant Staff Director – Revenues and Natural Resources for the U.S. Senate Committee on the Budget.
David holds a Master of Public Policy degree from the John. F. Kennedy School of Government at Harvard University, and a Bachelor of Science Degree in Business Administration from Colorado State University.
As Director, Electronic Tax Administration and Refundable Credits, David Williams is leading the effort to redefine the IRS’s approach to …
Mr. Dolan is the Practice, Procedure & Administration Group’s National Director of IRS Policies and Dispute Resolution. He works with a group of KPMG professionals who help clients creatively resolve complex IRS controversies and procedural issues. He also assists clients and firm members identify the opportunities and risks associated with the IRS structural, procedural and operating changes. Mike also helps evaluate potential client impacts of various IRS compliance initiatives.
Mr. Dolan joined KPMG’s Washington National Tax practice in March of 2000. He brought with him nearly 30 years of tax administration experience, 27 of which were gained with the Internal Revenue Service. During the last six years of his IRS career Mike served as the IRS Deputy Commissioner with two extended appointments as Acting Commissioner. As Deputy Commissioner, Dolan exercised line supervision over all IRS Headquarters and field functions, interacted extensively with the senior Treasury and Justice Department tax officials and was the senior U.S. representative to the principle international tax administration bodies. Prior to his appointment as IRS Deputy Commissioner, Mike held a succession of other key IRS district, regional and headquarters executive positions. As a result of his experience as the IRS’ senior operating official, Mike possesses broad knowledge of IRS operations, procedures and personnel.
Between leaving the IRS and joining KPMG, Mike was a senior counselor for a tax-based e-commerce start-up. He also provided tax administration technical assistance for the World Bank and the Inter-American Development Bank in Eastern Europe and South America.
Dolan is a member of the AICPA and is chair of its IRS Practice and Procedure Committee. He is a member of the DC Bar Association and its tax section and he is a frequent speaker and writer on a wide range of IRS practice, procedure and controversy topics.
Mike earned his undergraduate degree form the University of Notre Dame and his law degree from George Washington University.
Mr. Dolan is the Practice, Procedure & Administration Group’s National Director of IRS Policies and Dispute Resolution. He works with …
Phillip A. Pillar's practice concentrates on representing and advising clients in federal, state and international tax issues before tax authorities and courts. Phil has successfully negotiated sophisticated tax problems for clients. Phil's cases include precedent-setting decisions in the taxation of insurance companies (Atlantic Mutual), financial institutions (Signet Bank), and the transportation and manufacturing industries (Norfolk Southern). He also tried numerous estate tax valuation matters and was involved in other notable reported cases. He possesses extensive experience in federal tax alternative dispute resolution procedures, including mediation and arbitration. For multinational clients, Phil uses his experience of having advised and represented IRS in transfer pricing matters. Phil has also worked with clients' tax treaty positions and anti-deferral regime issues.
Phil has also counseled many companies, from Fortune 1000 to privately held, on managing their tax risk, particularly after the changes wrought by the Sarbanes Oxley Act of 2002. He is experienced in the fields of reportable transactions compliance and tax transparency, and he knows how tax issues in transactions and structures may be scrutinized. Recently, Phil has counseled clients and addressed tax professionals on the effects of greater transparency in tax disclosures under FIN 48 and tax reporting rules changes.
Phillip A. Pillar's practice concentrates on representing and advising clients in federal, state and international tax issues before tax authorities …
Mr. Kim is a partner in the Washington, D.C. office of Latham & Watkins, where he practices tax law with a focus on tax controversy at both the federal and state level. He has extensive experience with large, complex controversies, including audit, IRS Appeals Office and litigation phases.
Mr. Kim rejoined the firm in October 2004 after spending three years in the US Department of Treasury's Office of Tax Policy, first as an Attorney-Advisor and then as the Acting Deputy Tax Legislative Counsel (Regulatory Affairs) in 2003-2004. While at Treasury Mr. Kim had broad responsibility for regulatory and legislative matters relating to administrative and judicial tax practice. Working closely with the Office of the Commissioner of Internal Revenue and the IRS Office of Chief Counsel, Mr. Kim had a key role in the development of the Government's legislative and regulatory response to tax shelters, including provisions contained in the American Jobs Creation Act of 2004. He also was a principal drafter of the final Treasury regulations for the research credit. Mr. Kim was awarded Treasury's Meritorious Service Award for his contributions to the Office of Tax Policy.
Prior to entering the practice of law, Mr. Kim served as a law clerk to the late Hon. Morey L. Sear, Chief Judge of the United States District Court for the Eastern District of Louisiana.
Mr. Kim is a partner in the Washington, D.C. office of Latham & Watkins, where he practices tax law with …
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