Do CPA referral fee rules apply to the partner or the whole firm?

Does the CPA commission rule apply to the partner or the whole firm?

It applies to both, and the test runs against the whole firm. The AICPA commissions and referral fees rule is written about a member in public practice and the member's firm, so a partner who takes a reward personally is still tested against every client the firm serves. If the firm performs an audit, a review or certain other attest work for the company being introduced, the commission bar can reach the partner even when the partner never touched that engagement.

Routing the reward to the partner personally does not change that result, and routing it to the firm does not either. What changes the answer is the firm's relationship with the company. This is general information, not legal, tax or financial advice. Confirm with your own state board, professional body or counsel before acting.

What does the rule text say about a member and the member's firm?

The AICPA Code of Professional Conduct contains the Commissions and Referral Fees Rule (ET 1.520). In summary, a member in public practice may not accept a commission for recommending a product or service to a client when the member or the member's firm also performs an audit, a review, certain compilations or an examination of prospective financial information for that client. Permitted commissions and referral fees must be disclosed to the client. Read the current text on the AICPA site, because the Code is revised over time.

Two phrases matter here:

• "The member or the member's firm" means the independence question is firm-wide, not engagement-by-engagement. Where the firm audits the company, the test looks at the firm, so a partner in another practice group cannot assume the audit team's role is irrelevant.
• "Client" is the company being referred. The rule is triggered by the firm's relationship with that company, not by who in the firm made the introduction.

State rules can be stricter. The New Jersey Society of CPAs resource on commissions and contingent fees shows how a state can differ from the AICPA Code, so the state of licensure controls what you do.

Where does the reward land: partner, firm or nowhere?

There are three routing options, and each one answers a different question.

The third option is real: a partner can decide the reward is not worth the compliance exposure. Registering is optional, and the introduction is a separate act from collecting anything.

What do partnership agreements usually say about outside income?

Many partnership and operating agreements contain a clause that income earned by a partner in connection with the firm's clients belongs to the firm, or that partners must disclose outside business activities. The wording differs from firm to firm, so read yours rather than assuming.

Ask the managing partner or firm counsel these questions before you register:

• Does the agreement treat a referral reward as firm income, personal income or outside activity requiring consent?
• Does the firm keep a register of outside business interests, and who reviews it?
• Who maintains the list of attest clients, and how current is it?
• Does the firm's quality control policy require partner sign-off on any compensation tied to a client?

The 3-gate partner test

Before a single introduction, run three gates in order. Stop at the first "no".

1. Client gate. Does the firm perform an attest engagement, or is one proposed, for this company? If yes, stop and read the page on whether a CPA can introduce an audit client to a data licensing program.
2. Rule gate. Does your state board or the AICPA Code restrict or condition the reward, and what disclosure does it demand? Read the state guides for California, Florida and New York if they apply.
3. Agreement gate. Does the partnership agreement and firm policy permit you to take or route the reward?

How this plays out in common situations

What gets shared with SourceX, and what does not

A partner makes introductions and gives basic fit information only. Partners never export, upload or describe confidential records, and the company approves its own scope and price. That separation helps with client confidentiality, but it does not remove the commission question. The company fit checker is a preliminary, non-binding screen that needs no contact details, so you can test fit before deciding whether to introduce anyone.

How partner rewards work

Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 per referred company. The reward is paid only after the buyer pays and SourceX receives its fee; an introduction, meeting or signed agreement alone does not trigger payment, and no reward is guaranteed. The reward is a share of SourceX's fee and is never deducted from what the company receives. Check the current program terms before you register, and check your own licensing rules on referral fees and disclosure.

When to skip this entirely

Skip the personal reward, or the introduction, when any of these apply:

• The firm audits or reviews the company, or has a proposal out for attest work.
• Your state board requires disclosure or consent you cannot obtain.
• The partnership agreement bars outside compensation tied to a client.
• You cannot reach an authorized sponsor such as the owner, CEO or CFO.

Next step

Run the three gates, then write down the outcome in your firm's file. If they clear, register as a partner. Accounting-specific context is on the accountants page.