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

In this lesson, Nick Palazzolo, CPA, wraps up a key part of understanding the intersection of professional responsibilities with the nuance of real-world application, focusing on the intricacies of common law duties and liabilities that CPAs face when dealing with clients and third parties. He emphasizes the importance of being well-versed in situations involving the tax preparer, the client, and potential third parties, especially as these scenarios are fertile ground for testable simulations (SIMS) on the exam. He further underscores the importance of privileged communications and fiduciary duties, encouraging a robust grasp of these concepts to confidently navigate potential liability issues and duty breaches that could arise in practice.