Understanding CPA Communication Privileges in Tax Practice

Description

An overview of confidentiality privileges that shield taxpayer communications with their non-attorney tax professional from discovery by the Federal government in tax controversy matters. Taxpayers are entitled to assert confidentiality privilege under Internal Revenue Code Section 7525 similar to the common law attorney-client privilege with respect to communications with CPAs and Enrolled Agents. Also, some taxpayer communications with any expert, including CPAs and Enrolled Agents, enjoy privilege protection from discovery by the government under the "work product" doctrine. Additionally, communications between clients, attorneys, CPAs and Enrolled Agents may enjoy privilege protection under the "Kovel" judicial doctrine when the professional is retained to assist an attorney. Significant limitations attached to non-attorney privileges are critical for tax professionals to understand. Further, to avoid compromising a taxpayer communicating with an expectation of privilege that will not withstand challenge. Presented from the perspective of a non-attorney tax professional with experience in addressing each of the privilege issues in tax practice.

Highlights

• The Federally Authorized Tax Practitioner (FATPs)
• Understanding the attorney-client privilege
• The Section 7525 Statutory Privilege and Limitations
• The Work-Product Doctrine and Privilege and Limitations
• Kovel Engagements and Limitations

Objectives

• Identify significant developments over the past 12 months in the areas of insurance, investment, retirement, tax, estate, and personal financial planning.
• Identify traditional financial planning principles and assess how to implement recent personal financial planning developments into financial plans.

Designed For

CPAs, EAs, and other tax return preparers.