IRS guidance on Gramm-Leach-Bliley Act and return preparers.

• Author: Fiore, Nicholas J.
• Position: Use or disclosure of return information

The IRS has received inquiries from practitioners and return preparers on the effect of the Gramm-Leach-Bliley Act (Act) on Sec. 7216. The Act imposed new requirements on financial institutions to protect the privacy of nonpublic personal information. Sec. 7216 prohibits the unauthorized use or disclosure of return information by preparers.

Return preparers, as defined in Regs. Sec. 301.7216-1(b)(2), are advised that, although they may be subject to the Act's privacy provisions, such provisions do not supersede, alter or affect the preexisting Sec. 7216 requirements restricting a preparer's disclosure or use of return information...