Your business relationship with a Certified Public Accountant (CPA) handling tax issues is primarily guided by the contract you make. This is often referred to as an engagement agreement. However, regardless of what is covered or not covered in an engagement agreement, a few requirements extend to all CPA tax work.
1) Maintain Privacy and Security – Several authorities issue legal guidance and professional standards to ensure that CPAs maintain the highest standards available in business practice. There is no room for error. These requirements are constantly evolving. We most often refer to Internal Revenue Service (IRS) standards and Payment Card Industry Data Security Standards (PCI PSS) requirements.
2) Inform you of your legal obligation – If a CPA finds that you are not in compliance with tax law, the CPA must discuss your legal obligation with you.
3) Follow your instruction – The CPA is not the primary source of data nor the primary decision maker with regard to your taxes.
This topic was recently covered on “Daily Tax Minute”.