Counting Coppers and your privacy
Accounting professionals like all other providers of personal financial services are now required by law to inform their clients of their policies regarding privacy of client information. Accounting professionals have been and continue to be bound by professional standards of confidentiality that are even more stringent than those required by law. Therefore, we always protected your right to privacy.
Types of Nonpublic Personal Information We Collect
We collect nonpublic personal information about you that is provided to us by you or obtained by us with your authorization.
Parties to Whom We Disclose Information
We may from time to time, share your personal information (PI) with third-party service providers, some of whom may be cloud-based, but we remain committed to maintaining the confidentiality and security of your information. We maintain internal policies, procedures, and safeguards to protect the confidentiality of your PI. Although we will use our best efforts to make the sharing of your information with such third parties secure from unauthorized access, no completely secure system for electronic data transfer exists. You understand that the firm makes no warranty, expressed or implied, on the security of electronic data transfers.
Protecting the Confidentiality and Security of Current and Former Clients’ Information
We retain records relating to professional services that we provide so that we are better able to assist you with your professional needs and, in some cases, to comply with professional guidelines. In order to guard your nonpublic personal information, we maintain physical, electronic, and procedural safeguards that comply with our professional standards. We only keeps records for six (6) years. You are responsible for maintaining all records used to substantiate expenses claimed on filed returns.
Please call if you have any questions, because your privacy, our professional ethics, and the ability to provide you with quality financial services are very important to us.
Privileged Information
Federal law has extended the attorney-client privilege to some, but not all, communications between a client and the client’s EA. The privilege applies only to non-criminal tax matters that are before the IRS or brought by or against the U.S. Government in a federal court. The communications must be made in connection with tax advice. Communications solely concerning the preparation of a tax return will not be privileged.
Your confidentiality privilege can be inadvertently waived if you discuss the contents of any privileged communication with a third party, such as a lending institution, a friend, or a business associate.
IRS Section 7216 Regulations
On January 1, 2009, IRS regulations under Internal Revenue Code section 7216 became effective. Treas. Reg. section 301.7216 represents a modification of previous regulations that had remained largely unchanged for 30 years. The newly revised regulations attempt to address modern return preparation practices, including electronic filing and the cross marketing of financial and commercial products and services by tax return preparers.
Absent a specific, exception, Treas. Reg. section 301.7216 generally prohibits the disclosure or use of tax return information without the client’s explicit, written consent. In general, a “disclosure” of tax return information involves a disclosure by the preparer of a client’s return information to a third party. A “use” of tax return information generally involves the use of the return information by the preparer potentially for the purposes of offering non-tax services to the taxpayer.
Under section 7216, a tax return preparer is subject to a criminal penalty for “knowingly or recklessly” disclosing or using tax return information. Each violation of section 7216 could result in a fine of up to $1,000 or one year imprisonment, or both. Internal Revenue Code section 6713, the companion civil penalty, imposes a $250 penalty on a preparer for each prohibited disclosure or use of the return information.
Because of these rules we are no longer able to provide copies of tax returns to bankers and other third parties who may need a copy of your return if we have not received a proper disclosure form prior to completing your tax return. We appreciate your cooperation.