On December 27, 2025, Justice Masley of the New York County Commercial Division issued a decision in AMTAX Holdings 227, LLC v. Cohnreznick LLP, 2025 NY Slip Op. 35086(U), holding that normally, accountants do not have fiduciary duties to their clients, explaining:
The elements of a breach of fiduciary duty are (1) the existence of a fiduciary relationship, (2) misconduct by the defendant, and (3) damages directly caused by the defendant’s misconduct. Here, AMTAX fails to plead the existence of a fiduciary relationship. Even assuming for the sake of this motion that AMTAX could be considered CohnReznick’s client, the duty owed by an accountant to a client is generally not fiduciary in nature.
Therefore, the cause of action for breach of fiduciary duty is dismissed.
(Internal quotations and citations omitted).