consent-form-for-outsourcing-us-tax

New regulations under Internal Revenue Code Section 7216, Disclosure or Use of Tax Information by Preparers of Returns, become effective January 1, 2009.

Disclosure Situation 3

Consent is sought for disclosure of tax return information in the context of tax return preparation or performance of auxiliary services; and Tax return information will be disclosed outside the United States or any territory or possession of the United States
Disclosure includes the taxpayer’s social security number, or Disclosure includes a document where the social security number is not fully masked or otherwise redacted

Note that in order to disclose a taxpayer’s social security number to a tax return preparer located outside of the United States, both the tax return preparer located within the United States and the tax return preparer located outside of the United States must maintain an adequate data protection safeguard at the time the taxpayer’s consent is obtained and when making the disclosure. Rev. Proc. 2008-35 § 4.07.

An exception to the consent requirement exists where a tax return preparer located within the United States initially receives a social security number from a tax return preparer located outside of the United States and the preparer within the United States retransmits the social security number to the preparer that initially provided it. Treas. Reg. § 301.7216-3(b)(4).

Consent form for outsourcing US tax return to india under regulation 7216.docx