Question

in which situation would it be acceptable to disclose a clients confidential information without their permission?

a. the clients trade association requests the information for a survey of its members.

b. the client has passed away and his or her will cannot be located.

c. the internal revenue service requests the information for an audit of the clients tax records.

d. a close relative of the client requests the information because the client is behaving suspiciously.

Explanation:

• Option A: A trade - association survey does not override client confidentiality. Without the client's permission, sharing info for a survey is unethical.
• Option B: Just because a client has passed away and the will is not located does not give the right to disclose confidential information. There are legal procedures regarding the handling of a deceased person's information that usually require proper authorization (e.g., from an executor once appointed).
• Option C: The Internal Revenue Service (IRS) has legal authority to request information for tax - related audits. This is an exception to the general rule of client confidentiality as per tax laws.
• Option D: A close relative's suspicion is not a valid reason to disclose confidential information. Confidentiality agreements are in place to protect the client's privacy, and a relative's request without proper legal standing (e.g., power of attorney in relevant cases) is not sufficient.

Answer:

C. The Internal Revenue Service requests the information for an audit of the client’s tax records.