Following is a transcript of a question and answer highlighting frequent inquiries sent to the MACPA Professional Ethics Task Force. Responses to the inquiries have been tailored to specific questions presented and may not consider all of the unique circumstances that are part of an ethical inquiry. Attempt your own answer before reading the “unofficial” opinion of the Task Force.

I am getting ready to retire and want to sell my practice before another fun-filled tax season. The CPA-buyers want to review my client list and look through workpaper files. Rule 301 prohibits a member in public practice from disclosing confidential client information without specific consent of the client. What can I do?

You are right about Rule 301. However there are several exceptions to this rule. You may allow a prospective buyer to review client files provided you take “appropriate precautions” (e.g., a written confidentiality agreement with that CPA firm regarding those files). Although you can “sell” your practice, you cannot turn over or transfer individual client files without specific consent of each client.

Other exceptions to Rule 301 apply to a valid subpoena (talk to your lawyer first) and to investigations by the State Board of Accountancy or AICPA/MACPA Ethics Committees.