Video: Common Law Duties of Tax Preparers

In this lesson, Nick Palazzolo, CPA, dives into the critical duties and liabilities of tax return preparers, covering the spectrum of professionals from accountants to specialized attorneys. Through a mix of relatable examples and accessible discussions, Nick untangles the intertwining of contract, tort, and fiduciary law as they apply to the responsibilities of these individuals. He clarifies the duty of care, illustrating its significance through the consequences of negligence, and accentuates the need for confidentiality, drawing parallels beyond the accounting sphere. With an engaging narrative, Nick also elucidates fiduciary duties and the importance of putting clients' interests first to avoid conflicts of interest. Contractual obligations between preparers and clients are also explained, along with the potential repercussions of failing to meet those obligations. Lastly, Nick outlines scenarios where liability could extend to third parties, tying together legal concepts with practical implications—all presented in a way that is informative yet light-hearted, offering encouragement and quick tips for staying rejuvenated during intense study sessions.