8. Tax Advisor’s Privilege
Under IRC § 7525
• Statutory “tax practitioner‐client privilege”
provided by IRC §7525(a)(1). Very narrow in
scope, and is entirely inapplicable to criminal
tax cases. Also:
– Applies only to provision of “tax advice”
– Does not provide any protection for the tax
practitioner’s work product.
– Does not apply to written tax advice to corporate
type clients concerning their corporations’
involvement in tax shelters.
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35. U.S. Tax Court
Pretrial Discovery
• U.S. Tax Court’s rules reflect:
– An abbreviated discovery process
– A strong preference for stipulation of facts and
documents over testimony
– A desire to reduce burdens and expenses associated
with litigation in other judicial forums
• Court expects parties to attempt to attain
objectives of discovery through informal
consultation or communication before utilizing
formal discovery procedures
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