How should a CPA handle client information received during the preparation of tax returns?

The obligation of a CPA to maintain the confidentiality of client information is paramount, especially when it comes to sensitive data received during tax return preparation. By upholding confidentiality, a CPA not only adheres to ethical standards but also fosters trust between them and their clients. This trust is essential for a productive professional relationship.

Utilizing client information solely for the purpose of preparing taxes ensures that the CPA acts within the legal and ethical boundaries established by professional codes of conduct. This approach safeguards clients from unauthorized disclosure of their private financial details, protecting their interests and maintaining the integrity of the profession.

The other options, such as sharing information with other clients or discussing it publicly, would violate the ethical obligation of confidentiality, ultimately undermining client trust and the CPA's professional reputation. This underscores the importance of option B as the correct approach for handling client information in this context.