Privacy Policies and Notice Regarding Advisor-Client Privileged Communications
The Federal Trade Commission has issued regulations that require tax preparation firms to provide an annual statement of firm privacy policies:
I will handle all information you provide me with the utmost confidentiality. Your personal information will only be shared with members of my firm who need to know this information in order to complete the work you have hired my firm to do. I will not disclose your personal information to anyone outside my firm without your express written permission to do so, or unless Iam legally required to do so. For example, if a mortgage lender contacts our office for a copy of your return or information about it, I will ask that you provide written permission prior to my responding to that request.
You should also be aware that anything you tell me during the interview for the preparation of your tax return is confidential, but not protected from the IRS. Privileged communications (those that are protected from IRS authority to compel my testimony) are limited to non-criminal tax advice on matters before the IRS or non-criminal tax proceedings in federal courts. Although I consider any information you provide me as confidential, return preparation engagements are not covered by advisor-client privilege.