The short answer is: Yes. Firstly, he or she is bound by The American Institute of Certified Public Accountants (AICPA) codes of professional conduct. The codes emphasize confidentiality but acknowledge the responsibility to act in the public interest.
If you are engaged in fraud or other illegal activities that could harm the integrity of the tax system, there is an ethical duty to disclose this information, particularly if that professional’s accounting services are involved.
The IRS offers financial reward for turning in tax scofflaws. When the information results in additional taxes, penalties, and interest, the whistleblower may receive a portion of the collected amount as an award.
Despite your confidentiality agreement with your tax pro, your information can be disclosed without your consent if it:
- Complies with a subpoena or a court order, laws and regulations,
- Is part of certain professional practice reviews and investigations.
- If you are defendant in administrative or legal proceedings.
Fortunately, volunteering information to the IRS simply for a whistleblower award may not fall under these exceptions and involves ethical complexities for the tax practitioner.
If you have concerns, the solution is simple: follow the advice of reputable tax practitioner and don’t cheat. We welcome you to take advantage of a free discovery session by visiting New Client Application or https://calendly.com/d/46r-49m-93k/10-minute-intro-call.