Good News - CPAs Exempt From Act's Privacy Requirement

[Unregistered]

CPAs Exempt From Act's Privacy Requirement

Oct. 2, 2006 (SmartPros) — Congress just passed a bill that exempts certified public accountants from the Gramm-Leach-Bliley Act's requirement that CPAs send their clients an annual privacy notice, the American Institute of Certified Public Accountants announced. The exemption will be effective as soon as President Bush signs the bill.


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On Saturday the Senate unanimously passed the Financial Services Regulatory Relief Act of 2006. The act updates oversight and regulation of the financial services industry.

"Since the President is expected to sign the bill into law, all those CPAs who are now preparing this year's privacy notices can stop," said AICPA President Barry Melancon. "They won't have to send Gramm-Leach-Bliley Act privacy notices out this year. They can instead put that time into serving their clients."

Melancon said the requirement would have been "redundant for CPAs." He said the change in the examption of CPAs was made possible because CPAs are certified or licensed by state boards of accountancy and are already subject to state laws and regulations that prohibit disclosure of nonpublic personal information without the expressed consent of the client.

"This is wonderful news and a win for both CPA practitioners and their clients. The disclosure statements are often confusing to clients and they are expensive and time-consuming for CPAs to prepare," said Melancon.

[Bees Knees]

Melancon said the requirement would have been "redundant for CPAs." He said the change in the examption of CPAs was made possible because CPAs are certified or licensed by state boards of accountancy and are already subject to state laws and regulations that prohibit disclosure of nonpublic personal information without the expressed consent of the client.

What about Enrolled Agents?

What about non-licensed preparers?

Aren't they also subject to laws and regulations that prohibit disclosure of nonpublic personal information without the expressed consent of the client?

IRC Section 6713: "If any person who is engaged in the business of preparing, or providing
services in connection with the preparation of, returns of tax imposed by
chapter 1, or any person who for compensation prepares any such return for any
other person, and who--

(1) discloses any information furnished to him for, or in connection with,
the preparation of any such return, or

(2) uses any such information for any purpose other than to prepare, or
assist in preparing, any such return,


shall pay a penalty of $250 for each such disclosure or use, but the total
amount imposed under this subsection on such a person for any calendar year
shall not exceed $10,000."

IRC Section 7216: "Any person who is engaged in the business of preparing, or providing services
in connection with the preparation of, returns of the tax imposed by chapter 1,
or any person who for compensation prepares any such return for any other
person, and who knowingly or recklessly--

(1) discloses any information furnished to him for, or in connection with,
the preparation of any such return, or

(2) uses any such information for any purpose other than to prepare, or
assist in preparing, any such return,


shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined
not more than $1,000, or imprisoned not more than 1 year, or both, together
with the costs of prosecution.

[OldJack]

CPAs Exempt From Act's Privacy Requirement

Oct. 2, 2006 (SmartPros) — Congress just passed a bill that exempts certified public accountants from the Gramm-Leach-Bliley Act's requirement that CPAs send their clients an annual privacy notice, the American Institute of Certified Public Accountants announced. The exemption will be effective as soon as President Bush signs the bill.

I don't normally respond to unregistered posts, however in this case I couldn't resist. Bees...I believe the Gramm-Leach-Bliley Act is a different law than the IRS Code and its requirements.

[Bees Knees]

Yes, it is.

It is also a different law than the state accountancy laws that Melancon referred to.

So what is the difference?

[OldJack]

Yes, it is.

It is also a different law than the state accountancy laws that Melancon referred to.

So what is the difference?

The CPA's paid a lobbyist to get the job done and the EA's didn't. Get use to it.

[S T]

I would hope

I would hope that the NAEA and all of the local and State Chapters(EA) would also pursue this!

Sandy