AICPA finalizes independence rules for tax services to audit clients

The AICPA Professional Ethics Executive Committee approved final revisions to the Tax Services interpretation of the Code of Professional Conduct, at ET section 1.295.160. Kelly D. Mullins at the Journal of Accountancy reported the decision. The interpretation governs independence when a member provides tax advisory and tax planning services to attest clients.

PEEC kept a principles-based framework instead of a numeric threshold. Firms weigh advocacy and self-review threats case by case. A June 2024 exposure draft had proposed a "more likely than not" standard for tax positions. A September 2025 draft replaced it. PEEC also removed a separate factor covering transactions designed solely for tax avoidance and folded the point into broader guidance on support for a tax position. Early implementation is permitted.