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DC CURRENTS

Working remotely: A tax

practitioner’s checklist

Author: As the world, hopefully, moves to the The many facets of
Todd Simmens, Esq., CPA other side of the COVID-19 pandemic, client confidentiality
many routines, practices, and proce- A tax practitioner’s obligation to main-
dures have changed — likely for good. tain client confidentiality derives from
PwC, for example, announced in late many sources. Under Sec. 7216 and the
2021 that it would allow its U.S.-based regulations thereunder, for example,
client-serving professionals to work practitioners are generally prohibited
remotely going forward (“A ‘Big Four’ from disclosing or using client infor-
Firm Will Allow 40,000 Employees mation without client consent. Such
to Work From Home,” CNN Business information includes a taxpayer’s name,
(Oct. 2, 2021)). Other firms are follow- address, or identifying number, any of
ing suit. which were provided to the practitioner
The vision of what constitutes a in connection with the taxpayer’s return
Despite the trend workplace certainly has changed, with preparation. The “Confidential Client
toward working more individuals opting to work out- Information Rule” of the AICPA Code
side the office. Some, for example, are
of Professional Conduct (ET §1.700.001)
from home and working from home by choice; others forbids AICPA members in public prac-
other nonoffice are doing so as businesses reduce their tice from disclosing “confidential client
locations, tax office space; and some are working in information” without the client’s con-
sent. For lawyers in practice, American
a hybrid model, splitting time between
practitioners still must home and an office. As tax practitioners Bar Association Model Rule of Profes-
meet professional responding to this new environment, sional Conduct 1.6 generally prohibits
a lawyer from disclosing information
we must ensure that we continue to
requirements. protect the confidentiality of our clients’ related to a client representation without
information, comply with document- the client’s consent. The accountancy
retention policies, work as efficiently as and business laws of most states also
possible, ensure that deadlines are met, place a duty of confidentiality on practi-
achieve the highest-quality work, and tioners (see, e.g., Cal. Bus. & Prof. Code
continue to obtain required training. §5063.3 and N.J. Admin. Code tit. 13,
In today’s computerized world, many §13:29-3.7).
of the issues a remote tax practitioner In a traditional office environment,
should consider are not that different compliance with such rules is often PHOTO BY CELSODINIZ/ISTOCK/THINKSTOCK
from what the in-office practitioner a part of the practice’s infrastructure.
faces. This column reviews some of the For example, policies and procedures
nuances in these considerations that are often in place to ensure that
tax practitioners should think about as client-related conversations occur in
remote working continues to increase. closed-door offices or conference rooms.

40 January 2023 The Tax Adviser