The rule: return information is for the return
"Unless section 7216 or § 301.7216-2 specifically authorizes the disclosure or use of tax return information, a tax return preparer may not disclose or use a taxpayer's tax return information prior to obtaining a written consent from the taxpayer, as described in this section." (26 CFR 301.7216-3(a)(1))
"Tax return information" is broad. The IRS describes it as "all the information tax return preparers obtain from taxpayers or other sources in any form or manner that is used to prepare tax returns or is obtained in connection with the preparation of returns" (IRS 7216 FAQ). A client's email address that you got for the return is included.
| You want to send | Consent needed? |
|---|---|
| Tax law updates, newsletters, general business or economic information | No, using the permitted list (301.7216-2(n)) |
| "Book next year's return," a state return, an amended return | No, it's tax return preparation (301.7216-2(n)) |
| Bookkeeping, payroll, financial planning, insurance, loans | Yes, signed consent first (IRB 2013-3) |
| Ads with refund totals from your clients' returns | Not allowed through the statistics exception (301.7216-2(o)) |
What you can send without consent
You may keep a separate list holding only names, mailing addresses, email addresses, phone numbers, entity type (individual or kind of business) and the return form number (301.7216-2(n)(1)). Its permitted uses are narrow:
"This list may be used by the compiler solely to contact the taxpayers on the list for the purpose of providing tax information and general business or economic information or analysis for educational purposes, or soliciting additional tax return preparation services. The list may not be used to solicit any service or product other than tax return preparation services." (26 CFR 301.7216-2(n)(1))
Any delivery method works if it uses only the list's information (IRB 2013-3). You can't sell or hand the list to anyone else, except in a sale of your tax preparation business (301.7216-2(n)(1)).
Can a CPA firm offer bookkeeping to tax clients?
Not from return information without consent. Treasury was asked to add "accounting services" such as bookkeeping and payroll returns to the list's uses, and refused:
"Taxpayers may consent in writing to allow tax return preparers to use their tax return information to solicit non-tax return preparation services, such as the accounting services listed by the commentator." (T.D. 9608, IRB 2013-3)
The same preamble covers newsletters: to promote non-tax services in one, get consent from the clients who receive it (IRB 2013-3).
Doing the work is different from selling it. A preparer "lawfully engaged in the practice of law or accountancy" may use return information to provide other legal or accounting services to that client, such as preparing books and records (301.7216-2(h)). An affiliated firm counts as outside the firm and needs consent (301.7216-2(h)(1)(ii)).
When to ask for consent
Before the return is done. This is the timing trap:
"A tax return preparer may not request a taxpayer's consent to disclose or use tax return information for purposes of solicitation of business unrelated to tax return preparation after the tax return preparer provides a completed tax return to the taxpayer for signature." (26 CFR 301.7216-3(b)(2))
Other timing rules (301.7216-3):
- No consent after the fact: it must come before the use ((b)(1)).
- If a client says no, don't ask again for a substantially similar purpose for that return ((b)(3)).
- No end date stated means it lasts one year from signing ((b)(5)).
- It must be voluntary: making return preparation depend on it makes the consent invalid ((a)(1)).
What the consent form must say
Every consent must (301.7216-3(a)(3) and (c)):
- Name the preparer and the taxpayer.
- Name each type of product or service you'll solicit, for example "bookkeeping" or "life insurance."
- Say which tax return information you'll use.
- Be signed and dated by the taxpayer.
- Be given to the taxpayer as a copy, or let them print or save it.
For Form 1040 clients, use and disclosure need separate documents: one form can't authorize both (301.7216-3(c)(1)). Disclosure means sharing with someone else, such as a partner firm.
For individual (Form 1040) clients, Rev. Proc. 2013-14 adds fixed wording, which every consent to use must contain in this order (IRB 2013-3):
"Federal law requires this consent form be provided to you. Unless authorized by law, we cannot use your tax return information for purposes other than the preparation and filing of your tax return without your consent." (Rev. Proc. 2013-14, sec. 5.04)
It continues with set sentences on voluntariness and duration, plus a statement on where to report misuse. On paper, the consent is its own sheet in at least 12-point type; it may be attached to an engagement letter (sec. 5.01–5.02). Business clients that don't file a 1040 can consent in any format, including the engagement letter, if it meets the regulation (301.7216-3(a)(3)(iii)).
The penalties
- Civil: $250 per improper use or disclosure, up to $10,000 a year (26 U.S.C. 6713(a)). No intent needed (IRS 7216 FAQ).
- Criminal: a misdemeanor for knowing or reckless use, with a fine up to $1,000, up to 1 year in prison, or both (26 U.S.C. 7216(a)).
Canada
This is a US federal rule. For Canadian clients, marketing emails and texts need CASL consent; a client who paid you has implied consent for 2 years after the purchase (CASL, s. 10(10)(a)). See CASL consent.
This page describes the rules as of November 14, 2026; it isn't legal advice.
Example
A January newsletter
A two-person firm emails all 400 individual clients a tax-law update and a link to book this year's return. Both fit the list rule: no consent needed.
Adding bookkeeping
The same firm wants to offer monthly bookkeeping at USD 300 to clients with a Schedule C. Picking them by Schedule C uses return information. In February, the intake packet includes a separate consent to use return information to offer bookkeeping. Clients who sign get the offer; the rest get only tax content.
Asking at pickup
A client comes in to sign her finished return, and staff hand her a consent for a financial planning referral. Too late: the regulation bars requests for unrelated solicitation after the completed return is handed over for signature.
Different for you?
- Ads, websites and fees for tax preparers: tax preparer advertising rules.
- Getting new clients outside tax season: accounting firm marketing.
- Canadian clients: CASL consent.
- Answering new inquiries fast: speed to lead.
- Following up every lead and client within these rules: Conversion agent.