Short answer: State board and privilege rules differ in form, but none of the three we summarize authorizes a voluntary data license of client information without permission or another clear exception. Tax return information is also covered nationwide by IRC 7216. Expect firm-owned operating material as the realistic scope.
On this page
- Federal rules apply everywhere
- Texas: the rule in short
- Texas: What the rule says
- Texas: Why it matters for licensing
- Florida: the rule in short
- Florida: What the statute says
- Florida: Why it matters for licensing
- Illinois: the rule in short
- Illinois: What the statute says
- Illinois: Who holds it
- Illinois: Why it matters for licensing
- Frequently asked questions
- Sources
Federal rules apply everywhere
Tax return information is covered nationwide by IRC 7216 and its consent rules (26 CFR 301.7216-3). Mode lists accounting at 15+ employees (Mode).
This is general information, not legal advice. Talk to your own attorney or compliance advisor before you share or license any records.
Texas: the rule in short
Texas Board Rule 501.75 bars voluntary disclosure of client information without the client's written permission, and it names contractors, subcontractors and affiliates, inside or outside the US, among the third parties covered. It also requires prompt written notice to clients if you lose control of their records.
Texas: What the rule says
Except by written permission of the client or its authorized representatives, a licensee 'shall not voluntarily disclose to a third party, including contractors, subcontractors, subsidiaries, and/or affiliates, within or outside the United States of America', information communicated by the client in connection with professional accounting services (22 Tex. Admin. Code § 501.75).
Texas: Why it matters for licensing
The rule's exceptions cover things like subpoenas, peer review and practice-sale reviews under an NDA. A data license isn't on the list, so client information needs written permission. The rule also requires 'all reasonable measures' to protect client records and prompt written notice to affected clients of any loss of control, including a cybersecurity breach.
Florida: the rule in short
Florida gives clients a statutory privilege over confidential communications with their accountant, including other confidential information obtained to render accounting advice. The client holds the privilege, so the firm can't waive it on the client's behalf.
Florida: What the statute says
A client 'has a privilege to refuse to disclose, and to prevent any other person from disclosing, the contents of confidential communications with an accountant', and the privilege extends to other confidential information obtained from the client to render accounting advice (Fla. Stat. § 473.316).
Florida: Why it matters for licensing
Because the client holds the privilege, anything it covers stays out of a license unless the client agrees. The accountant can claim the privilege only on the client's behalf.
Illinois: the rule in short
Illinois' accountant privilege works differently: 225 ILCS 450/27 says a CPA 'shall not be required by any court to divulge' information obtained in a confidential capacity, and the Illinois Supreme Court held the privilege belongs to the CPA. It shields CPAs from courts; it doesn't permit voluntary disclosure.
Illinois: What the statute says
'A licensed or registered CPA shall not be required by any court to divulge information or evidence which has been obtained in the licensee or registrant's confidential capacity as a licensed or registered CPA' (225 ILCS 450/27). The section is scheduled to be repealed January 1, 2029.
Illinois: Who holds it
In Brunton v. Kruger the Illinois Supreme Court held that the privilege is held by the accountant, not the client (2015 IL 117663).
Illinois: Why it matters for licensing
A privilege against compelled disclosure doesn't authorize voluntary disclosure. Professional-conduct rules and engagement terms still govern client information.
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Frequently asked questions
Is one state stricter than the others?
States differ in form. Compare your board's rule with counsel; we summarize only what we've read.
Does this cover non-CPA staff?
Rules usually reach partners, employees and others in the firm. Check the exact text.
Which states are covered here?
Texas, Florida and Illinois, based on the statutes and cases we read.
Sources
- 26 CFR § 301.7216-3, Disclosure or use permitted only with the taxpayer's consent (Cornell LII)law.cornell.edu
- Mode / BizBuyData referral pagebizbuydata.com
- 22 Tex. Admin. Code § 501.75, Confidential Client Communications (Cornell LII)law.cornell.edu
- Florida Statutes § 473.316, Communications between the accountant and client privilegedflsenate.gov
- 225 ILCS 450/27, Confidentiality of licensee's and registrant's recordsilga.gov
- Brunton v. Kruger, 2015 IL 117663 (Illinois Supreme Court)illinoiscourts.gov
Referral-fee disclosure: we may be paid by a program if your company signs with it after using this site. General information only, not legal advice.
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