Section 7216 Clarification

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#1
CathysTaxes  
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I'm reviewing the IRS website Section 7216. I may have to file small claims against a client for non payment. I was wondering if the following provision from their site would allow me to mention the client's tax issues in the suit (I was retained because the IRS caught up to them not filing a return since 2004, I finally got almost enough information to file 2016 return) and during presentation of the case (I've noticed on Judge Judy, she asks all kinds of questions and I certainly don't want to tell a judge that I can't answer because of 7216). Thanks

Q6 What are “disclosures” of tax return information?

A6 Disclosure of tax return information is the act of making tax return information known to any person in any manner whatsoever. The regulations authorize two types of disclosures:

Certain permissible disclosures without taxpayer consent
Disclosures requiring taxpayer consent

The regulations provide exceptions allowing tax return preparers to disclose tax return information without a taxpayer’s prior written consent under certain circumstances: e.g., disclosures to the IRS, other taxing jurisdictions or the courts; disclosures to other U.S.-based tax return preparers that assist in preparing the return; and disclosures for the purpose of obtaining legal advice. These and other exceptions can be found in Treas. Reg. §301.7216-2.

All other disclosures not specifically authorized require tax return preparers to secure from taxpayers advance signed consents (see 7 below) authorizing the disclosures.
Cathy
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#2
Frankly  
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As noted in the copied IRS info, there are a ton of exceptions to be found in §301.7216-2. (g)(3) seems to be exactly on target.
 

#3
CathysTaxes  
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Thanks Frank.
Cathy
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