Effective Date of Rule: Thirty-one days after filing.
Purpose: To correct an error in subsection (3) and to clarify that licensees who prepare federal income tax returns in accordance with Internal Revenue Service rules do not violate client confidentiality.
Citation of Existing Rules Affected by this Order: Amending WAC 4-30-050 What are the requirements concerning records and clients confidential information?
Statutory Authority for Adoption: RCW 18.04.055(2), 18.04.405(1).
Adopted under notice filed as WSR 12-23-068 on November 20, 2012.
Changes Other than Editing from Proposed to Adopted Version: The board added the word "also" as the third word of the new language added to subsection (3). This provides clarity that the application of this new subsection is in addition to the confidentiality requirements of the rule prior to amendment.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 1, Repealed 0; Federal Rules or Standards: New 0, Amended 1, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.
Date Adopted: January 22, 2013.
Richard C. Sweeney, CPA
AMENDATORY SECTION(Amending WSR 11-06-062, filed 3/2/11, effective 4/2/11)
WAC 4-30-050 What are the requirements concerning records and clients confidential information? (1) Client: The term "client" as used throughout WAC 4-30-050 and 4-30-051 includes former and current clients. For purposes of this section, a client relationship has been formed when confidential information has been disclosed by a prospective client in an initial interview to obtain or provide professional services.
(2) Sale or transfer of client records: No statement, record, schedule, working paper, or memorandum, including electronic records, may be sold, transferred, or bequeathed without the consent of the client or his or her personal representative or assignee, to anyone other than one or more surviving partners, shareholders, or new partners or new shareholders of the licensee, partnership, limited liability company, or corporation, or any combined or merged partnership, limited liability company, or corporation, or successor in interest.
(3) Confidential client communication or information:
Licensees, CPA-Inactive certificate holders, nonlicensee firm
owners and employees of such persons must not without the
specific consent of the client or the heirs, successors, or
authorized representatives ((
or employee)) of the client
disclose any confidential communication or information
pertaining to the client obtained in the course of performing
This rule also applies to confidential communications and information obtained in the course of professional tax compliance services unless state or federal tax laws or regulations require or permit use or disclosure of such information.
Consents may include those requirements of Treasury Circular 230 and IRC Sec. 7216 for purposes of this rule, provided the intended recipients are specifically and fully identified by full name, address, and other unique identifiers.
(4) This rule does not:
(a) Affect in any way the obligation of those persons to comply with a lawfully issued subpoena or summons;
(b) Prohibit disclosures in the course of a quality review of a licensee's attest, compilation, or other reporting services governed by professional standards;
(c) Preclude those persons from responding to any inquiry made by the board or any investigative or disciplinary body established by local, state, or federal law or recognized by the board as a professional association; or
(d) Preclude a review of client information in conjunction with a prospective purchase, sale, or merger of all or part of the professional practice of public accounting of any such persons.
[Statutory Authority: RCW 18.04.055(2), 18.04.390 (4)(b), and 18.04.405(1). 11-06-062, amended and recodified as § 4-30-050, filed 3/2/11, effective 4/2/11; 08-18-016, § 4-25-640, filed 8/25/08, effective 9/25/08; 05-01-137, § 4-25-640, filed 12/16/04, effective 1/31/05; 03-24-033, § 4-25-640, filed 11/25/03, effective 12/31/03. Statutory Authority: RCW 18.04.055(2). 02-22-082, § 4-25-640, filed 11/5/02, effective 12/31/02. Statutory Authority: RCW 18.40.055 [18.04.055]. 93-22-046, § 4-25-640, filed 10/28/93, effective 11/28/93.]