Question

CPAs may never disclose confidential taxpayer information under the AICPA rules.

a. True.
b. False.
c. Only with the taxpayer's written consent.
d. Only if required by law.

Answer 1

It is false that CPAs can never disclose confidential taxpayer information; they can do so if legally required or with the taxpayer's written consent, in accordance with the AICPA Code of Professional Conduct. The correct option is b.

Step-by-step explanation:

The statement that CPAs may never disclose confidential taxpayer information under the AICPA rules is false. According to the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, a CPA is obligated to maintain the confidentiality of client information.

However, there are exceptions to this rule. A CPA may disclose confidential information without the taxpayer's consent if it is legally required, such as in response to a court order or a lawful request by a governmental body.

Additionally, with the taxpayer's written consent, a CPA may disclose information as directed by the taxpayer. It is crucial for CPAs to adhere to these rules and ensure that any disclosure of confidential information is done in accordance with the law and with proper authorization.

Hence, Option b is correct.