Temp. regs. give guidance on return preparer information disclosures.

• Author: Nevius, Alistair M.

The Service released final and temporary regulations that govern the disclosure of a taxpayer's Social Security number to overseas return preparers (T.D. 9409; REG-121698-08). Under the temporary regulations, such disclosure will be permitted in limited cases, with the taxpayer's consent.

Return preparers are generally forbidden to disclose a taxpayer's Social Security number to any return preparer located outside the United States or to seek a taxpayer's consent to such a disclosure (Regs. Sec. 301.7216-3(b)(4)). The new regulations provide that a tax return preparer within the United States may (with the taxpayer's consent) disclose a Social Security number to a tax return preparer located outside the United States when both tax return preparers maintain an "adequate data protection safeguard" and the tax return preparer located within the United States verifies the maintenance of the adequate data protection safeguards in the request for the taxpayer's consent.

Rev. Proc. 2008-35 describes what "adequate data protection safeguards" are and gives rules for the form...