I've got another issue regarding the disclosure and use consents.

This is a circumstance in which information the client provided needs
to be clarified or corrected with a third party (a 1099 from a
brokerage firm appears to be incorrect). The Rev.Proc. states that we
can't obtain consent to disclose and use after receiving tax return
information and using it to prepare the return. But I didn't know
about the problem until I looked over the 1099 and I was well into
preparation. The client doesn't want to try to explain the problem
directly with the brokerage firm and wants me to do it.

It seems that I can't call up the broker to discuss the problem even
with the client's consent, because a consent I obtain now is
prohibited by the Rev Proc. and I can't disclose information in my
possession to the broker, even the name of the mutual client. so am I
limited to preparing the return based on the information provided with
no clarification or correction permitted? That could result in
unnecessary communication between the client and IRS.

Grrr. I hate this Rev. Proc. I think the author didn't consider all
these problems when writing it.

Tom Healy CPA, CSA
Boulder, CO

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In article <a96eef3d-e226-495d-9330-7100010ca2b7[at]o36g2000yqh.googlegroups.com> ,
Tom Healy CPA <tom[at]tomhealycpa.com> wrote:
- quote -




Welcome back, Tom.


- quote -


No, but the child would then request the IRS to send the necessary
parent information,.

See the procedure described at page 11 third column of
http://www.irs.gov/pub/irs-pdf/p929.pdf



- quote -


See page 4 of Pub 929




- quote -


I would think yes.


- quote -

Yes, but applies to any unmarried couple.




- quote -


Makes me nervous.



- quote -




Why not just give client a business card of a financial advisor, attorney,
etc?

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

It's been a long time since I've written to the group (pre-Google!).

As I'm getting in the thick of tax return preparation, I'm finding an
awful lot of circumstances where it appears I need to apply this Rev.
Proc. Here are some:
(1) A child over age 18 needs tax return information of the parent to
properly complete Form 8615. Do the parents need to consent to the use
and disclosure of this information to the child?
(2) The parents of the child want to receive the child's tax return on
her behalf. Does the child need to consent to the use and disclosure
of this to the parents?
(3) An elderly client has given me a copy of a financial power of
attorney that names a child to do all financial dealings on behalf of
the client. Do I nonetheless need to get the client to sign use and
disclosure consents to be able to discuss/release tax information to
the child?
(4) A gay couple want me to do their tax returns; one of them does
most of the financial dealings for the couple. I believe that if I
hand their tax returns back together, each of them will need to sign
consents to permit me to disclose one's tax return information to the
other, even when both are in the same conference room with me.
(4) From my knowledge of clients, I think that two of them would
benefit from meeting each other. Do I need to obtain use and
disclosure consents from each of them allowing release of contact
information to the other? How is that accomplished, since I can't
disclose the contact information of the other until I've received his
use and disclosure consents (and vice versa)? What is the impact of
having networking mixers for clients?
(5) It appears that a business client would benefit from setting up a
qualified retirement plan. Do I need to obtain a use consent to use
her tax return information to figure out the best retirement plan
options? And use and disclosure consents to introduce the client to a
vendor? And another set of consents to discuss the specifics (Roth vs
traditional 401(k), for example) with the vendor after the client has
established a relationship?
This Rev. Proc. reminds me of the FTC gyrations we had to go through a
few years ago when CPAs were labeled "financial" professionals.

Tom Healy

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >