Definition of Disclosure
Disclosure is releasing your tax return information to a third-party. Disclosure may be authorized or unauthorized. Unauthorized disclosure is a crime.Your tax return is confidential. Because your tax return and the information contained in your tax return is confidential, the IRS cannot talk to anyone else about your tax return – not even your tax preparer. In order for the IRS to talk to someone else about your tax return, you must authorize the IRS to disclose your information to the other person.
You can authorize the disclosure of your tax return information by using Tax Information Authorization (Form 8821) (PDF) or Power of Attorney (Form 2848) (PDF). If you want your tax preparer, a family member, or other trusted person to handle your affairs with the IRS, you should use the Power of Attorney form. If all you want is for your tax preparer to receive information from the IRS about your taxes, but not to act on your behalf, then use only Form 8821.
Since your tax return information is confidential, the IRS and your tax preparer cannot disclose that information to anyone else without your explicit consent. If you find out that the IRS or your tax preparer has disclosed your tax information without your consent, you may bring a civil lawsuit for damages. The IRS has steep penalties against tax preparers who disclose tax return information without your permission. Your tax preparer cannot release your confidential tax information to anyone without your explicit permission. If your tax preparer asks you if it is OK for him to share your information with third-parties, it is your right to say no.
