This page is general information, not legal, tax or financial advice. Talk to a qualified professional about your situation.
An accounting or tax firm can consider licensing the firm’s own records, but client tax return information is off-limits without each taxpayer’s written consent. Federal law makes it a crime for a return preparer to knowingly or recklessly disclose or use return information outside the permitted cases, with fines up to $1,000 and up to a year in prison (26 U.S.C. § 7216), and the regulations require written consent before any other disclosure or use (26 CFR 301.7216-3). The AICPA Code adds that a member in public practice “shall not disclose any confidential client information without the specific consent of the client.”
Records and how they are usually treated
| Records | Usually | Why |
|---|---|---|
| Client tax returns, workpapers and return information | Exclude | § 7216 and the written-consent rule in § 301.7216-3 |
| Client books kept on the firm’s systems | Exclude | AICPA confidential client information rule and client contracts |
| Engagement letters and client correspondence | Exclude unless scrubbed and allowed by contract | Confidential client information |
| Firm scheduling, workflow and project records | Possible, after review | Firm operations; remove client identifiers in narratives |
| The firm’s own accounting system | Possible | Nyne lists accounting systems (QuickBooks, Xero, NetSuite) among the data it licenses |
| Internal email and chat on operations, training, policies | Possible, after review | Scrub client specifics |
Before you apply
- Map where client data lives. Tax software, document portals and client-books systems are usually separate from practice-management and internal tools.
- Keep tax software out of scope. It is the most direct route to return information.
- Read your engagement letters. Many restrict any use of client information.
- Ask a tax attorney to sign off on the scope, and write the exclusions into the licence.
Mode publishes a lower minimum for accounting firms (15 employees) than for most businesses; the table below lists every buyer’s rule, and the eligibility check routes your firm in two minutes.
Which buyers take this industry
| Buyer and program | Industry rule | Company minimums | Operating or closed |
|---|---|---|---|
| micro1: Enterprise Data Partnership | No industry limit in the buyer’s published rules | 30+ full-time employees and substantial historical data; several years of records across systems is a stronger fit. No fixed minimum file count or size. | Both. Operating companies apply to the Enterprise Data Partnership; companies no longer operating apply to the Defunct Company Data Partnership. |
| micro1: Defunct Company Data Partnership | No industry limit in the buyer’s published rules | 30+ full-time employees and substantial historical data; several years of records across systems is a stronger fit. No fixed minimum file count or size. | Both. Operating companies apply to the Enterprise Data Partnership; companies no longer operating apply to the Defunct Company Data Partnership. |
| Nyne: Company data licensing | No industry limit in the buyer’s published rules | 20+ full-time US W-2 employees and 3+ years in business, plus a decision maker who can approve the licence | Operating companies only |
| Mode: Company data partnership | No industry limit in the buyer’s published rules | 10+ employees for legal; 15+ for accounting, medical and finance; 50+ for all other businesses. Several years of records you own make a stronger fit. | Not stated. Mode says businesses and nonprofits can qualify. |
| Troveo: Business data licensing | No industry limit in the buyer’s published rules | Not stated | Not stated |
Questions people ask
Can we license client tax returns if names are removed?
Treat it as no. The consent rule in 26 CFR 301.7216-3 applies to disclosure or use of tax return information, and section 7216 makes a knowing or reckless disclosure a federal misdemeanor. Get advice from a tax attorney before any client data is part of a licence.
What about our own books and practice-management data?
The firm's own accounting, scheduling, workflow and internal communications are firm records. Review them for client details, then they can be part of a licence, subject to your client contracts.