Asked by: Tlaitmass Struckmeyebusiness and finance legal services industry
Are CPAs bound by confidentiality?
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.
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.
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.