Privileged Communications, Confidentiality, and Privacy Acts

Question 1

T/F The federal courts recognize an accountant-client testimonial privilege.

Answer 1

False

Question 2

T/F The IRS extends a modest testimonial privilege to clients of all tax advisers.

Answer 2

True

Question 3

What are the exceptions to confidentiality?

Answer 3

1. GAAP disclosure
2. Subpoena
3. Ethical exam
4. Peer review
5. Need to know basis

Question 4

Under the Bank Secrecy Act (BSA), taxpayers have an obligation to do what?

Answer 4

Report foreign bank accounts

Question 5

List the two actions that are punishable conditions under §7216 of the Internal Revenue Code.

Answer 5

1. Disclosing any info obtained in tax return prep

2. Using info other than to prepare tax return

Question 6

List the six conditions under which disclosure of client

information is acceptable.

Answer 6

1. The client consents.
2. Generally accepted accounting principles calls for
   disclosure.
3. There is an enforceable summons.
4. There is an ethical examination.
5. There is a peer review.
6. To others in the firm on a needtoknow
   basis.