Please read this page carefully because it explains how US data privacy rules impact how we provide tax services to you. The IRS adopted these rules and they govern how we handle your private information.
Internal Revenue Code section 7216 was expanded by the IRS with the objective of giving taxpayers greater control over their private data. This was primarily for two reasons.
Firstly, to stop abusive practices in the use of private taxpayer data to promote and market financial products, such as Refund Anticipation Loans, life insurance, and other investment products. As you know, Expat US Tax never promotes or markets financial products to you as part of our services to you.
Secondly, the IRS needed to bring the rules up-to-date with the significant increase in electronic handling of tax data, including tax data gathering via the internet, electronic tax return preparation, and e-filing of tax returns with the IRS.
What is "disclosure" and what is “use”?
- A “disclosure” occurs whenever we provide your tax return information to a third party. For this purpose, a third party could include professionals employed by a member company of the Expat US Tax network (there are independent legal entities in several countries), certain other accountants/ temporary staff engaged to assist us with administrative activities, or other firms providing your foreign (i.e. non-US) tax services.
- “Use” is defined as any work other than the preparation of your tax return, for example tax consulting services.
What Am I Being Asked to Do?
Due to the very nature of our business, our clients live and work outside of the US. Because your tax information will therefore be used outside of the US, we are required to obtain your consent to transfer this information across international borders. You are being asked to review and sign two separate consents. Summary information on these consents is shown below.
- Consent 1 – Disclosure of your tax return information for the purpose of preparing your tax return
In providing our services to you we may need to share your tax return information within our network. We must obtain your consent to share this information in the course of our work as we are based outside of the US.
- Consent 2 – Use of your tax return information for other purposes
You may request that we provide advice on other US tax issues, over and above the tax return you have engaged us to prepare. We must obtain your consent to use your tax data for any purpose that is not directly related to the preparation of the aforementioned tax return.