[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.7216-1]

[Page 484-485]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                 Crimes, Other Offenses, and Forfeitures
 
Sec. 301.7216-1  Penalty for disclosure or use of tax return information.

    (a) In general. Section 7216(a) provides in effect that, except as 
provided in section 7216(b), any tax return preparer (as described in 
paragraph (b)(2) of this section) who on or after January 1, 1972, 
discloses or uses any tax return information (as described in paragraph 
(b)(3) of this section) other than for the specific purpose of 
preparing, assisting in preparing, or obtaining or providing services in 
connection with the preparation of, any tax return of the taxpayer by or 
for whom the information was made available to a tax return preparer, 
shall be guilty of a misdemeanor, and, upon conviction thereof, shall be 
fined not more than $1,000, or imprisoned not more than 1 year, or both, 
together with the costs of prosecution. Pursuant to section 7216(b), the 
provisions of section 7216(a) and this paragraph do not apply to any 
disclosure or use permitted under Sec. 301.7216-2 or Sec. 301.7216-3.
    (b) Definitions. For purposes only of section 7216 and Sec. Sec. 
301.7216-1 through 301.7216-3--
    (1) Tax return. The term ``tax return'' means any return (or amended 
return) of the income tax imposed by chapter 1 or 2 of the Code, or any 
declaration (or amended declaration) of estimated tax made under section 
6015.
    (2) Tax return preparer. (i) The term tax return preparer means any 
person--
    (A) Who is engaged in the business of preparing tax returns,
    (B) Who is engaged in the business of providing auxiliary services 
in connection with the preparation of tax returns,
    (C) Who is remunerated for preparing, or assisting in preparing, a 
tax return for any other person, or
    (D) Any individual who, as part of his duties or employment with any 
person described in (A), (B), or (C) of this subdivision, performs 
services which assist in the preparation of, or assist in providing 
auxiliary services in connection with the preparation of, a tax return.

For example, assume that a bank is a tax return preparer within the 
meaning of (A) of this subdivision and it employs one individual to 
solicit the necessary tax return information for the preparation of a 
tax return and another individual to prepare the return on the basis of 
the information that is furnished. Under these circumstances, both 
employees are tax return preparers. Also, for example, a secretary to a 
tax return preparer who types or otherwise works on returns prepared by 
the preparer is a tax return preparer.

[[Page 485]]

    (ii) A person is engaged in the business of preparing tax returns as 
described in subdivision (i)(A) of this subparagraph if, in the course 
of his business, he holds himself out to taxpayers as a person who 
prepares tax returns, whether or not tax return preparation is his sole 
business activity and whether or not he charges a fee for such services.
    (iii) A person is engaged in the business of providing auxiliary 
services in connection with the preparation of tax returns as described 
in subdivision (i)(B) of this subparagraph if, in the course of his 
business, he holds himself out to tax return preparers or to taxpayers 
as a person who performs such auxiliary services, whether or not 
providing such auxiliary services is his sole business activity and 
whether or not he charges a fee for such services. For example, a person 
part or all of whose business is to provide a computerized tax return 
processing service based on tax return information furnished by another 
person is a tax return preparer.
    (iv) A tax return preparer described in subdivision (i)(C) of this 
subparagraph includes any person who--
    (A) For remuneration but not in the course of a business prepares a 
tax return for another person, or
    (B) For remuneration and on a casual basis helps a relative, friend, 
or other acquaintance to prepare the latter's tax return.
    (v) A person is not a tax return preparer merely because he leases 
office space to a tax return preparer, furnishes credit to a taxpayer 
whose tax return is prepared by a tax return preparer, or otherwise 
performs some service which only incidentally relates to the preparation 
of tax returns. For example, assume that a tax return preparer contracts 
with a department store for the rental of space in the store, and that 
the store advertises that taxpayers who use the tax return preparation 
service may charge the cost of having their tax return prepared to their 
charge account with the department store. Under such circumstances, the 
department store is not a tax return preparer.
    (3) Tax return information. The term ``tax return information'' 
means any information, including but not limited to a taxpayer's name, 
address, or identifying number, which is furnished in any form or manner 
by a taxpayer for, or in connection with, the preparation of a tax 
return of such taxpayer. Information furnished by a taxpayer includes 
information which is furnished on behalf of the taxpayer by any person; 
for example, any person required under section 6012 to make a return for 
such taxpayer, such as a guardian for a minor, by a duly authorized 
agent for his principal, by a fiduciary for an estate or trust, or by a 
receiver, trustee in bankruptcy, or assignee for a corporation.

[T.D. 7310, 39 FR 11538, Mar. 29, 1974]