Asked by: Tlaitmass Struckmeye
business and finance legal services industry

Are CPAs bound by confidentiality?

Last Updated: 17th June, 2020

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Federal law does not recognize a general accountant-client privilege. A federal statute does provide a limited shield of confidentiality for communications between a federally-authorized tax practitioner and his or her client. This statutory protection, however, is narrow.

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Accordingly, can a CPA disclose confidential information?

The rule states that a member in public practice shall not disclose any confidential client information without the specific consent of the client. Even where the intent has been to warn others of pending financial harm, the courts have held that CPAs must not divulge client information.

One may also ask, what is confidentiality in accounting? Confidential Accounting Protects Business Interests Barring a legal obligation to share their knowledge, accounting professionals must protect financial information from third parties, taking the utmost protection against unauthorized disclosures.

In this way, do CPAs have client privilege?

Federal law does not recognize a general accountant-client privilege. A federal statute does provide a limited shield of confidentiality for communications between a federally-authorized tax practitioner and his or her client. This statutory protection, however, is narrow.

Which states have accountant client privilege?

Seven states have a statutory evidentiary privilege that would protect communications between a taxpayer and an accountant: California, Florida, Georgia, Idaho, Louisiana, Nevada, and Oklahoma.

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