Privileged Communications

Question 0

Accountant client testimonial privilege

Answer 0

Federal courts have refused to recognize accountant-client testimonial privilege

Approximately 15 states have recognized this privilege, however, in these states the client has the privilege not the accountant

Question 1

What is work product privilege

Answer 1

Typically prevents one party in a lawsuit from using the other sides attorneys strategies for litigation

Question 2

What is Section 6713?

Answer 2

Imposes a civil penalty for each unauthorized disclosure or use of tax information by a tax return preparer

Question 3

What is section 7216?

Answer 3

Imposes a criminal fine and potential imprisonment for knowingly:

1. ) disclosing any information obtained in connection with the preparation of a return
2. ) using such information for any purposes other than to prepare or assist in preparing the return

Question 4

When does the IRS allow TRPs to use tax return information?

Answer 4

“For the purposes of providing other legal or accounting services to the taxpayer.” Ex. When a tax law changes the accountant could use the information to identify affected taxpayers.