§7525 — Confidentiality privileges relating to taxpayer communications

16 cases·5 followed·2 distinguished·5 questioned·4 cited—31% support

Statute Text — 26 U.S.C. §7525

(a)Uniform application to taxpayer communications with federally authorized practitioners

(1)General rule

With respect to tax advice, the same common law protections of confidentiality which apply to a communication between a taxpayer and an attorney shall also apply to a communication between a taxpayer and any federally authorized tax practitioner to the extent the communication would be considered a privileged communication if it were between a taxpayer and an attorney.

(2)Limitations

Paragraph (1) may only be asserted in—

(A)

any noncriminal tax matter before the Internal Revenue Service; and

(B)

any noncriminal tax proceeding in Federal court brought by or against the United States.

(3)Definitions

For purposes of this subsection—

(A)Federally authorized tax practitioner

The term “federally authorized tax practitioner” means any individual who is authorized under Federal law to practice before the Internal Revenue Service if such practice is subject to Federal regulation under section 330 of title 31, United States Code.

(B)Tax advice

The term “tax advice” means advice given by an individual with respect to a matter which is within the scope of the individual’s authority to practice described in subparagraph (A).

(b)Section not to apply to communications regarding tax shelters

The privilege under subsection (a) shall not apply to any written communication which is—

(1)

between a federally authorized tax practitioner and—

(A)

any person,

(B)

any director, officer, employee, agent, or representative of the person, or

(C)

any other person holding a capital or profits interest in the person, and

(2)

in connection with the promotion of the direct or indirect participation of the person in any tax shelter (as defined in section 6662(d)(2)(C)(ii)).

16 Citing Cases

Countryside Limited Partnership, CLP Holdings, Inc., Tax Matters Partner, Petitioners 132 T.C. No. 17 · 2009

3 - documents are protected from disclosure by either the attorney-client privilege or the so-called federally authorized tax practitioner (FATP) privilege described in section 7525(a) . We have resolved by order all issues with respect to the motions-- except that, with respect to certain documents described infra, we have determined that the documents contain privileged communications, protected from disclosure by the FATP privilege, but subject to respondent's right to show that the exception

Countryside Ltd. Partnership v. Commissioner 132 T.C. 347 · 2009

Section 7525 Section 7525(a)(1) provides a limited privilege, equivalent to the attorney-client privilege, to communications regarding tax advice between a taxpayer and any FATP. Section 7525(b), as applicable to communications made before October 22, 2004, provides as follows: SEC. 7525(b). Section Not To Apply to Communications Regarding Corporat

United States v. BDO Seidman, LLP 492 F.3d 806 · Cir.

United States v. BDO Seidman · Cir.

Steven Menzies v. Seyfarth Shaw LLP · Cir.

Steven Menzies v. Seyfarth Shaw LLP 943 F.3d 328 · Cir.

Cavallaro v. United States 284 F.3d 236 · Cir.

United States v. BDO Seidman 337 F.3d 802 · Cir.

Doe 1 v. KPMG LLP 398 F.3d 686 · Cir.

Scotty's Contracting and Stone, Inc. v. United States 326 F.3d 785 · Cir.

United States v. Bdo Seidman 337 F.3d 802 · Cir.

No. 04-10470 398 F.3d 686 · Cir.

Carvallaro v. United States 284 F.3d 236 · Cir.

United States v. Textron Inc. · Cir.

Richard Gaetano v. United States 942 F.3d 727 · Cir.

Taylor Lohmeyer Law Firm v. United States 957 F.3d 505 · Cir.