Question

29) The IRS has issued a summons for the tax file held by CPA Ann Whitman for her clients, the Harberts. The file consists of paper and electronic spreadsheets in which Whitman detailed some tax computations using assumptions that the IRS would find to be “too aggressive.” In addition, the file includes notes from meetings with the Harberts, income and balance sheet data as to their personal assets, and other technical correspondence, including email messages. In a memo to the tax research file, summarize the current status of the law as to whether the privilege of confidentiality protects these documents from the government.

Answer 1

As per U.S. Code 7525 the common laws protected of confidentially applies to communication between a taxpayer and a federally authorized tax practitioner.

Sec 7525 extend the common law protection of attorney -client privilege to a person who in his capacity as a client, is communicating with his tax practitioner.

it is to be noted Here that his privilege is limited in scope when compared to the attorney client privilege.

with the occurrence of the current situation of confidentially, the IRS will not disclose any information presented to them to anyone unless authorized by the law, all taxpayers have equal rights to face the law in cases of any embezzlement or fraud presented to the IRS.

It is to be noted that Code 7525 only applies in case of noncriminal tax matters before the IRS.

As the tax matter of the Harberts is not criminal in nature the privilege of confidentially protects these documents from the government