Referral Fee - Disclosure

I know that AICPA rules dictate that if I refer a client to someone like a financial advisor and I receive a commission, I must disclose that to the client. I am getting a ton of inbound calls for tax prep now (way more than I can handle). If I refer those out to another practitioner who will pay me a referral fee, does that still need to be disclosed? These are not my clients and I have never provided any services to them whatsoever.

Glad I don't have to follow that rule!

§ 54.1-4413.3. Standards of conduct and practice.
Persons using the CPA title in Virginia and firms providing attest services, compilation services, or financial statement preparation services to persons or entities located in Virginia shall conform to the following standards of conduct and practice.

1. Exercise sensitive professional and moral judgment in all activities.

2. Act in a way that serves the public interest, honors the public trust, and demonstrates commitment to professionalism.

3. Perform all professional responsibilities with the highest sense of integrity, maintain objectivity and freedom from conflicts of interest in discharging professional responsibilities, and avoid knowingly misrepresenting facts or inappropriately subordinating judgment to others.

4. Follow the Code of Professional Conduct, and the related interpretive guidance, issued by the American Institute of Certified Public Accountants, or any successor standard-setting authorities.

5. Follow the technical standards, and the related interpretive guidance, issued by committees and boards of the American Institute of Certified Public Accountants that are designated by the Council of the American Institute of Certified Public Accountants to promulgate technical standards, or that are issued by any successor standard-setting authorities.

6. Follow the standards, and the related interpretive guidance, as applicable under the circumstances, issued by the Comptroller General of the United States, the Federal Accounting Standards Advisory Board, the Financial Accounting Standards Board, the Governmental Accounting Standards Board, the Public Company Accounting Oversight Board, the U. S. Securities and Exchange Commission, comparable international standard-setting authorities, or any successor standard-setting authorities.

7. Do not engage in any activity that is false, misleading, or deceptive.

2007, c. 804; 2015, c. 287.

Yes I understand that. The code of professional conduct states that an accountant who receives a permitted commission or referral fee must disclose the commission or fee to the client. However, they are not my client and never will be my client. I am trying to determine whether disclosure would be necessary in this instance.

It's possible to be fully transparent in a way clients will understand.

For example, "For this matter you need to consult a business attorney. You should J Derkowitz who in my opinion is an excellent attorney and I have a lot of clients who are happy with him. For full disclosure, he does offer me a fee for referrals, but I wouldn't recommend him if I couldn't put my reputation on the line that he does a good job."