Right to Privacy

Right to Privacy

The right to privacy refers to an individual’s ability to control their personal information and maintain confidentiality regarding their private life. In the context of accounting and taxation, it encompasses the obligation of CPAs and financial professionals to protect sensitive client information from unauthorized access or disclosure.

This right is supported by various laws and regulations, such as the Internal Revenue Code and the Gramm-Leach-Bliley Act, which mandate the safeguarding of financial data. For example, when a CPA prepares a client’s tax return, they must ensure that the client’s personal and financial information is kept secure and is only shared with authorized parties. Violations of the right to privacy can result in legal penalties and loss of trust between the client and the CPA.