Video: Common Law Duties and Liabilities to Clients and Third Parties Overview

In this lesson, Nick Palazzolo, CPA, delves into the intricate duties and legal responsibilities tax preparers have towards their clients and potential third parties. He sheds light on who these third parties might be, for example, banks that rely on a client's tax returns for loan approval processes, and what liabilities could exist in these scenarios. Nick navigates through the learning objectives, clearly setting the stage for understanding common law violations and the dire need for ethical practices within the realm of tax preparation. Furthermore, he clarifies the nuances of privileged communication between tax preparers and their clients, drawing a comparison to the more robust client-attorney privilege, while explaining the limitations in the context of tax-related matters. Through this discussion, he imparts a deeper comprehension of confidentiality in client communications and the importance of abiding by these legal and ethical standards.