Page 5 - Be Aware of 26 U.S.C. § 7216: You May, to Your Surprise, Be a Tax Return Preparer

taxpayer other than tax return preparation, such as estate planning or writing trial
briefs. 26 C.F.R. § 301.7216 2(h)(1).

Disclosure or use of information in the case of certain related taxpayers. 26 C.F.R. §
301.7216 2(e).

You may sometimes disclose tax return information to a second taxpayer
who is related to the first taxpayer.

Covered relationships:

husband and wife

child and parent

grandchild and grandparent

partner and partnership

trust or estate and beneficiary

trust or estate and fiduciary

corporation and shareholder

members of a controlled group of corporations

The first taxpayer’s tax interest in the information must not be adverse to the

second taxpayer’s tax interest in the information.

The first taxpayer must not have expressly prohibited the disclosure or use.

If you are an attorney, disclosure or use of tax return information in performing legal
services for another client. 26 C.F.R. §301.7216 2(h)(2).

The tax return information is or may be relevant to the subject matter of the
legal services for the other client.

Consideration of the tax return information is necessary for the proper
performance of your or your colleagues’ legal services to the other client.

You may disclose the information to another employee or member of your
firm, but you may not disclose the information to anyone who is not an
employee or member of your firm.

Disclosure to an individual taxpayer’s fiduciary, such as a duly appointed fiduciary of a
deceased taxpayer or the executor of the taxpayer’s estate. 26 C.F.R. § 301.7216 2(j).