§7216 consent for offshore preparers: what it must say, and the SSN rule
Sources checked 8 October 2026
Short answer
Before your firm shares any client's tax return information with a preparer located outside the United States, the client must sign and date a consent. For Form 1040-series clients, Rev. Proc. 2013-14 fixes the wording, and a US preparer may not obtain consent to send the client's Social Security number offshore unless both preparers meet the "adequate data protection safeguard" standard. Masking the SSN keeps you to the short statement. Unauthorized disclosure carries a civil penalty of $250 per disclosure, up to $10,000 a year, and is a criminal misdemeanor.
When consent is required
Rev. Proc. 2013-14: If a tax return preparer to whom the tax return information is to be disclosed is located outside of the United States, the taxpayer's consent under §301.7216-3 is required prior to any disclosure.
The regulation adds that a consent to disclose or use tax return information must be signed and dated by the taxpayer.
Consent comes first, before the file moves.
The statement the consent must contain
| If the information sent offshore… | The consent must say |
|---|---|
| Does not include the SSN, or the SSN is fully masked or redacted | This consent to disclose may result in your tax return information being disclosed to a tax return preparer located outside the United States. |
| Includes the SSN | The same opening, adding including your personally identifiable information such as your Social Security Number ("SSN"), followed by a statement that both the tax return preparer in the United States that will disclose your SSN and the tax return preparer located outside the United States that will receive your SSN maintain an adequate data protection safeguard, and that federal agencies may not be able to enforce US privacy laws against the preparer outside the US |
Section 5.04 lists further mandatory statements that depend on the purpose of the disclosure, in a set order. Draft from the full text of the revenue procedure.
The Form 1040 SSN rule
Treas. Reg. §301.7216-3(b)(4)(i): a tax return preparer located within the United States may not obtain consent to disclose the taxpayer's social security number (SSN) with respect to a taxpayer filing a return in the Form 1040 Series … to a tax return preparer located outside of the United States
, except as provided in (b)(4)(ii) — the adequate data protection safeguard route, which both preparers must meet.
The simplest compliant workflow for 1040 clients: mask or redact the SSN before anything leaves your firm. The offshore preparer works from the masked file, and the consent stays to the one-sentence statement.
Form of the consent
- A separate written document for each disclosure — it may be attached to the engagement letter
- On paper: 8½ × 11 inch or larger, at least 12-point type, every line about the consent itself
- Electronic consent is allowed, with an electronic signature that ensures
affirmative, knowing consent
to each disclosure - Signed and dated by the taxpayer
The penalties
| Provision | Penalty |
|---|---|
| IRC §6713(a) — civil | $250 for each disclosure or use, up to $10,000 per calendar year |
| IRC §7216(a) — criminal, knowing or reckless | Misdemeanor: fine up to $1,000 ($100,000 where §6713(b) applies), up to 1 year in prison, or both |
§6713(b) is the enhanced penalty for disclosures connected with identity theft.
Your checklist before outsourcing
- Consent signed and dated by each client before the first disclosure
- SSNs masked for every Form 1040-series client
- The consent kept on file by your firm
- The offshore preparer covered as a service provider under your WISP
Sources
- Rev. Proc. 2013-14 — sections 3, 5 and 6
- 26 CFR 301.7216-3 (eCFR, current) — (a)(3), (b)(4)
- 26 U.S.C. §7216 — (a)
- 26 U.S.C. §6713 — (a), (b)
This page explains published rules. For advice on your firm's own arrangement, ask your counsel.