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You must use this form to authorize the IRS to contact a third party on your behalf or to revoke that authorization.
A: Yes, electronic consent is permissible under IRC Section 7216 as long as the taxpayer is provided with sufficient information to make an informed decision and provide consent. Electronic methods (e.g., e-signatures) can streamline the consent process on Form 7216 for both clients and firms.
The 7216 regulations permit tax return preparers to use a list of client names, addresses, email addresses, phone numbers and each clients income tax form number to provide clients general educational information, including general educational information related to the Affordable Care Act.
In general, though, any disclosure of taxpayer information that goes beyond what is necessary for the tax return preparation process requires the taxpayers consent under Sec. 7216. Furthermore, to ensure compliance with the law, taxpayer consent must be obtained before any disclosure is made.
A violation of section 7216 is a misdemeanor, with a penalty of up to one year imprisonment or a fine of not more than $1,000, or both, together with the 2 Page 3 costs of prosecution.
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People also ask

7216 is a criminal provision enacted by the U.S. Congress in 1971 that prohibits preparers of tax returns from knowingly or recklessly disclosing or using tax return information. A convicted preparer may be fined not more than $1,000, or imprisoned not more than one year or both, for each violation.
File Form 8821 to: Authorize any individual, corporation, firm, organization, or partnership you designate to inspect and/or receive your confidential information verbally or in writing for the type of tax and the years or periods listed on the form. Delete or revoke prior tax information authorizations.
Form 4506-C includes the Client company requesting transcripts and increased the number of Wage and Income transcripts requests. General Instructions. Caution: Do not sign this form unless all applicable lines have been completed.

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