Understanding CPA Communication Privileges in Tax Practice 2024

Overview

Learn an overview of confidentiality privileges that shield taxpayer communications with their non-attorney tax professional from discovery by the Federal government in tax controversy. Taxpayers are entitled to assert confidentiality privilege under Internal Revenue Code Section 7525, similar to the common law attorney-client privilege concerning communications with CPAs and Enrolled Agents. Also, some taxpayer communications, including CPAs and Enrolled Agents, enjoy privileged 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 communicates with an expectation of privilege that will not withstand challenge. Learn from the perspective of a non-attorney tax professional with experience in addressing each of the privilege issues in tax practice. Companion course: Providing Tax Advice: Professional Standards 2024

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

Prerequisites

Tax practitioners with two years experience and a working knowledge of the AICPA Statements on Standards for Tax Services and IRS Circular 230.

Designed For

CPAs, EAs, and other tax return preparers.

Objectives

• Recognize the nature of the common law attorney-client privilege, including the various issues surrounding "waiver" of the privilege
• Identify the nature of protected communications between taxpayer clients and the non-attorney Federally Authorized Tax Practitioner
• Determine the significant limitations about each of the respective privileges
• Obtain an understanding of handling privileged communications from a documentation standpoint

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by the California Education Foundation (CalCPA). Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.