Short answer: 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.
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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).
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.
Federal rules apply too
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.
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Frequently asked questions
Is Texas stricter than other states?
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.
Sources
- 22 Tex. Admin. Code § 501.75, Confidential Client Communications (Cornell LII)law.cornell.edu
- 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
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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