It may surprise you to learn there is no client privilege for the client of a CPA, accountant, tax preparer or financial professional. What is client privilege and how is this important in the context of your relationship with your accountant, bookkeeper or CPA?
Client privilege is a legal protection that exists under US law between an attorney and their client and ensures that all information shared between the parties can be “full and frank” so that the attorney can provide effective legal advice or counsel. The information discussed and disclosed cannot be compelled from the client or the attorney by the IRS or any other agency or legal opponent during the course of a taxation or legal matter.
The fact that there is no client privilege for the client of a CPA, accountant, tax preparer or financial professional is a critical issue for the clients of Allen Barron and Janathan L. Allen, APC, especially as it pertains to domestic and international taxation matters , IRS audits and other tax issues with the IRS or a State of California tax agency.
You need sound advice and counsel, and you need to be able to have an open conversation so that you may reveal the genuine facts without compromising your position in the future. As an experienced San Diego tax attorney our conversations are protected by the attorney-client privilege and the information we discuss under the client privilege can be legally withheld from the IRS or California tax authority during any tax controversy.
There is no client privilege for the client of a CPA, accountant, tax preparer or financial professional. Anything you discuss with these professionals as well as all documents and even their own work product could be compelled from them by the IRS or California tax agency and used against you during any tax controversy case such as an audit or fraud investigation. This is a huge issue that most business owners and corporate officers have not considered, and it would be prudent for them to investigate the impact this has on the privacy of their business and personal information going forward.