NSA Members—
Doing the Right Thing
in the Right Way
By Bill Parrish
very recently heard John Ams, the Executive Vice must disclose to them such things as what information we collect
I
President of NSA, declare that NSA and its members from them and what we do with that information. We need to
do the right thing, and in the right way. I understood help them understand it is for the protection that we must have
what John meant by NSA doing the right thing but their written permission to use their information for anything
I was focused on his statement that NSA “and our other than the preparation of their tax return, even including
members” do the right thing, and then after a pause, offering tax advice to them based upon their own information.
he added “in the right way.” Many of us who know Sometimes, it is difficult for clients to understand the difference
John well and understand that he is very careful in between preparation and advice. While it may appear overkill to
his choice of words, wanting to ensure that the correct connota- us to require that we advise clients in writing that other individu-
tion comes from each statement he makes. I heard him make this als within our office may see their information, and as well may
statement to members of the Board of Directors of the National be obvious to the client that this will occur, we need to make our
Association of State Boards of Accountancy, (NASBA,) but I clients aware of the problems that could exist if their information
have heard him use those same words before, even in testimony is inappropriately used by someone else.
before the IRS and other regulators. “NSA and our members,… The season is upon us. Now is the time to define our approach
do the right thing in the right way.” Hmm. to compliance within our own firms. There may be a few who
say this is too much and will
fail to comply, There will be
WHILE YOU AND I HAVE NOT CONTRIBUTED TO THE
many who will make an attempt
VIEWED PROBLEMS WITHIN OUR PROFESSION,
to understand the requirements
WE ARE THE FOCUS OF THE PROPOSED CURES.
under all of these onerous regu-
lations and implement them
seamlessly into their everyday
After much thought, it has become crystal clear what John routines. There will be a few who will set themselves apart from
meant and it carries both a powerful message and a dynamic the crowd and focus on doing the right thing,… in the right way.
challenge to each of us. Doing the right thing in the right way These few will incorporate a client engagement and disclosure
is far more than just doing the right thing. This has never been package into their firm’s operation. These few will take the time
more relevant to our profession than at this very moment, to interact with clients, for the benefit of all parties, to help
especially in light of the many new requirements and regulations alleviate any possibilities of abuse of client information. Each
being forced upon us in the arena of tax preparation services of us must decide which approach is the one for us. No one can
we provide. How we comply as individual practitioners is every make such choices for us. I have made my choice to continue to
bit as important as if we comply. On the heels of a monstrous be the outstanding firm taking the high road in everything we
credibility crisis aimed at our profession, Enron and the other do, what will your choice be?
horrific examples even extending to Madoff, on the heels of the
Gramm Leach Bliley act and Sarbanes Oxley comes Reg. 7216.
We ask how much more can our profession bear, but is that truly
for more information on regulation 7216, it is suggested that
the correct approach?
each practitioner go to the IRS website, www.irs.gov, and search for 7216.
While you and I have not contributed to the viewed prob-
It is explained well including examples of consent and disclosure letters.
lems within our profession, we are the focus of the proposed
NSA held two recent webinars on the topic of ethics. To view these
cures. Again, regulation which will affect all of us has been the
webinars, go to the NSA webinar archive page or click here:
result of the action of a few unscrupulous practitioners, most of http://webinars.nsacct.org/archived.php
whom are underground and will not adhere to the newly enacted
regulations anyway. But you and I can be among the complain-
ers, or we can take the high road. The easy thing for us to do is

Bill Parrish
simply comply with all of these burdensome requirements but if
ABA, ATA, ATP, ARA
we truly want to do things in the right way, we can lead the way
Kansas City, MO
in compliance. We can educate our clients as to the “whys” of all
of the new disclosure rules both they and us need to comply with.
We can explain to them how it is for their protection that we
February 2010 NPA Magazine 3
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