Screen Consent - Consent to Disclose, Use Tax Return (1040)

Show expandable text

New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Overview

Use this screen to enter client-specific information to prepare the Consent to Use Tax Return Information and/or Consent to Disclose Tax Return Information with the tax return. Up to four consents will print: Consent to Disclose - General, Consent to Disclose - Bank Product, Consent to Use - General, and Consent to Use - Bank Product. Use the Document Editing window to create and modify all client documents including transmittal letters, filing instructions, custom paragraphs, and invoices. For more information, see Customizing client documents.

To enable the Consent to Disclose to print with the tax return for all clients, choose Setup > 1040 Individual, click the Federal tab, click the Other Return Options button, and click the Consent to Disclose tab.

To enable the Consent to Use to print with the tax return for all clients, Setup > 1040 Individual, click the Federal tab, click the Other Return Options button, and click the Consent to Use tab.

To print the Consent to Disclose or Consent to Use letters with Client Organizer, click Setup > 1040 Individual, click the Organizer tab, click the Consent button, and click the applicable tab.

Note: If consent to disclose or consent to use information has been entered on this screen for a client, the Consent screen data entry for consent to disclose and/or consent to use will supersede the Setup > 1040 Individual > Federal > Other Return Options > Consent to… dialogs. Items listed in the Recipient(s) of tax return information fields in the Setup > 1040 Individual > Federal > Other Return Options > Consent to… dialogs will appear after items listed on the Consent screen, if applicable.

IRC Section 7216 requires preparers to receive consent from their clients to use or disclose their tax information for purposes other than preparing their tax return, and in certain limited situations, for purposes involving tax return preparation. This includes using "third party" return data entry services, offering bank products such as an Electronic Refund Disbursement Service (ERDS) from Refund Advantage, or products or services such as mortgage loans, mutual funds, individual retirement accounts, and life insurance.

Thomson Reuters cannot provide tax preparers with legal advice on these provisions. We strongly recommend that you seek counsel from your own legal advisor as to the specific consequences to, and requirements for, tax preparers regarding IRC Section 7216 and the regulations. This would include seeking counsel prior to using any data mining searches for anything other than the preparation of tax returns, to ensure you are in compliance with all applicable laws and regulations.

Note that per Rev. Proc. 2008-35, the font size for each consent must be at least 12 points.

Consent to Disclose

Enter information in this section to prepare the Consent to Disclose Tax Information.

Is the disclosure of information in a tax preparation or auxiliary service context?

Choose yes or no to indicate whether or not the disclosure of tax information is in a tax preparation or auxiliary service context. The choice here will produce the appropriate required language on the consent document. An entry is required in this field to print a Consent to Disclose - General document.

Is the recipient(s) located outside of the United States?

Choose yes or no to indicate whether or not the recipient or recipients are located outside of the United States. If more than one recipient, choose yes if any of the recipients are located outside of the United States. The choice in this box will produce the appropriate required language on the consent document. An entry is required in this field to print a Consent to Disclose - General document.

Consent to Disclose is for bank product

If this field is marked, the Consent to Disclose - Bank Products will be produced. This consent will include all required language in addition to paragraphs explaining that the disclosure of the client's tax return information will be for the approval of bank products.

Bank product bank…

The bank name in the Consent to Disclose - Bank Products will default to Refund Advantage. If Thomson Reuters is not being used as the ELF transmitter, this field will be available for data entry. Enter the name of the bank that is providing the bank products.

Date consent will expire

Enter the date the consent will expire. All consents will be written with an expiration date of one year from the date printed if no expiration date is specified.

Consent to Disclose ... signed and returned

Enter X in this field if the Consent to Disclose has been signed and returned. Data Mining can be used to set up various reports of clients that have this field marked.

Recipients of tax return information

Indicate up to four specified recipients of the taxpayer's tax information. An option to affirmatively select each recipient will be printed on the consent form.

Consent to Use

Enter information in this section to prepare the Consent to Use Tax Information.

Date consent will expire

Enter the date the consent will expire. All consents will be written with an expiration date of one year from the date printed if no expiration date is specified.

Consent to Use ... signed and returned

Enter X in this field if the Consent to Use has been signed and returned. Data Mining can be used to set up various reports of clients that have this field marked.

Consent to Use is for bank product

If this field is marked, the Consent to Use - Bank Products will be produced. This consent will include all required language in addition to paragraphs explaining that the taxpayer's information will be used to secure bank products.

Bank product bank…

The bank name in the Consent to Use - Bank Products will default to Refund Advantage. If Thomson Reuters is not being used as the ELF transmitter, this field will be available for data entry. Enter the name of the bank that is providing the bank products.

Third party involved in specific use of tax return information

Enter the name of the third party involved in the specific uses of tax return information indicated in the Specific uses of tax return information fields, if applicable. The name of the third party will print in the Consent to Use - General document.

Specific uses of tax return information

Indicate up to four specified recipients of the taxpayer's tax information. An option to affirmatively select each recipient will be printed on the consent form. An entry in any one of these four fields is required to print a Consent to Use. These options will be printed in the Consent to Use - General document.

Was this article helpful?

Thank you for the feedback!