What states recognize accountant-client privilege?
Asked by: Clemens Ullrich | Last update: August 27, 2025Score: 4.6/5 (53 votes)
Some states, like Colorado, Missouri, Florida and Pennsylvania, recognize the privilege. In lawsuits filed in those states, the information will be treated as privileged unless the suit is filed in a federal court. If the legal proceedings involve federal issues, then the privacy of information will not apply.
Are accountants allowed to say who their clients are?
The CPA's professional responsibility for client information is primarily defined in Sec. ET-301 of the AICPA Professional Standards. The rule states that a member in public practice shall not disclose any confidential client information without the specific consent of the client.
Does New York have an accountant-client privilege?
New York, for example, does not recognize the privilege. Accountants practicing in Maryland or other states with ACP (such as Washington, D.C., Virginia, Florida, Colorado and Puerto Rico) should be aware of the privilege disparity between state and federal laws before rendering advice in those jurisdictions.
Is the accountant-client privilege recognized?
Although California recognizes an attorney-client privilege, it does not recognize a similar accountant-client privilege.
Is there an accountant-client privilege under federal law?
While there is no accountant-client privilege under the common law, some communications between an accountant and a client may be privileged under the attorney-client privilege if the accountant is acting as an agent of the attorney. This agency theory comes from U.S. v. Kovel, 296 F.
Want to Keep Your Attorney-Client Privilege? Avoid These 5 Mistakes | Washington State Attorney
Which states have accountant-client privilege?
Some states, like Colorado, Missouri, Florida and Pennsylvania, recognize the privilege. In lawsuits filed in those states, the information will be treated as privileged unless the suit is filed in a federal court. If the legal proceedings involve federal issues, then the privacy of information will not apply.
What is the accountant-client privilege in Florida?
(2) A client has a privilege to refuse to disclose, and to prevent any other person from disclosing, the contents of confidential communications with an accountant when such other person learned of the communications because they were made in the rendition of accounting services to the client.
Is there an accountant privilege in Texas?
Some states have enacted a non-evidentiary accountant–client privilege. For example, Texas has a privilege rule that requires that a certified public accountant (CPA) not voluntarily disclose information communicated to the CPA by a client in connection with the engagement without the client's permission.
Is it OK to give accountant access to bank account?
It allows for greater efficiency and accuracy: Providing your accountant with direct access to your bank accounts streamlines financial management and reduces the risk of errors.
Does California have accountant-client privilege?
Other states, including Oklahoma, Florida and California, have passed evidentiary accountant-client protections that shield privileged communications in a manner similar to attorney-client privilege. 11 In these states, disclosure is protected from court order.
What is the accountant's privilege in Illinois?
Sect. 27 of the Illinois Public Accounting Act provides for an Accountant's Privilege wherein a licensed or registered CPA will not be required to disclose information obtained in their capacity as a CPA. Operatively, it is the CPA who invokes and holds the privilege and not the client. §27.
Can a CPA fire a client?
Termination provisions:
Including a clear termination provision in an engagement letter, indicating an engagement can be terminated without completion for any reason, can provide significant latitude, if termination becomes necessary.
What is the accountant-client privilege in Tennessee?
Tennessee's accountant-client privilege “applies only to confidential information . . . [and] to come within the terms of the statute [T.C.A. § 62-1-116] the information must have been communicated to the accountant in a confidential setting arising from the employment.
Can you say you're an accountant without a CPA?
While all CPAs are accountants, not all accountants are CPAs. In fact, according to data from the Bureau of Labor Statistics (BLS), and CPA licensure data, only about 50% of accountants in the United States are actively licensed CPAs.
Are CPAs bound by confidentiality?
Can a CPA disclose confidential information? Fortunately, there's such a thing as Accountant-client privilege. This means that your CPA cannot disclose information about your tax return or other aspects of your finances to any third-party without first getting express permission from you.
What accountants should not do?
A professional accountant should not allow bias, conflict of interest or undue influence of others.
How do I give my accountant access to my Capital One credit card?
Before adding an authorized user to your Capital One account, you'll need some information about the user, including their Social Security number (SSN) and date of birth. You can then sign in to your account online to easily add and choose the level of access for your authorized user.
Can my accountant access my bank account?
A third-party authority can be given to allow someone you trust to manage day-to-day banking transactions on your behalf such as: A financial advisor or accountant making financial transactions or investments on your behalf.
Can my wife access my bank account without my permission?
Only the account holder can authorize transactions to and from that account. For a spouse to access their partner's bank account, there must be a specific and legally recognized reason for doing so, like when they have been granted power of attorney or they are the main beneficiary of that account.
In what situations is the accountant-client privilege recognized?
While the I.R.C. has codified an accountant-client privilege for tax matters, it is very limited in its protection of communications. Because of this limited scope, accountants entering into sensitive discussions should always involve or consult legal counsel.
What is the privilege rule in Texas?
A client has a privilege to refuse to disclose and to prevent any other person from disclosing confidential communications made to facilitate the rendition of professional legal services to the client: (A) between the client or the client's representative and the client's lawyer or the lawyer's representative; (B) ...
Can you get a CPA without an accounting degree in Texas?
In Texas, to become a CPA you are required to: Complete a 150-hour degree program in accounting at an accredited college or university, pass the Uniform CPA Examination and attain a level of professional work experience in accounting.
What is the accounting client privilege in Nevada?
NRS 49.185 General rule of privilege. A client has a privilege to refuse to disclose, and to prevent any other person from disclosing, confidential communications: 1. Between the client or the client's representative and the client's accountant or the representative of the client's accountant.
What is the rule 203 for CPA?
As required under Rule 203 of the CPA Code of Professional Conduct, "A member shall sustain professional competence by keeping informed of, and complying with, developments in professional standards in all functions in which the member provides professional services or is relied upon because of the member's calling".
Does the federal law recognize the accountant-client privilege?
Though some states have passed laws creating an accountant-client privilege, federal courts often do not recognize this privilege. However, confidential information disclosed to an accountant can still be protected in federal court through a Kovel agreement.