Can a lawyer who practices before the IRS give a tax agent's family discounted fees in exchange for the agent helping the lawyer's career?

Plain-English summary

A lawyer, formerly employed at an IRS office and now representing taxpayers before that same office and his former co-workers, agreed in writing to reduce the fees charged to a particular IRS agent's family members in exchange for the agent "doing what he could to further the career" of the lawyer. The inquiry asked whether that agreement was permissible.

The opinion concluded that Rule 7.2(b) bars a lawyer from giving anything of value for recommending the lawyer's services, and that the fee reduction to the agent's family is a thing of value; assuming "furthering the career of the lawyer" includes recommending his services, the arrangement violates Rule 7.2(b). It declined, for lack of information, to opine on whether the agent's conduct would itself violate the Rules if the agent were a lawyer.

The opinion concluded that the lawyer's attention should be drawn to Rule 1.11(a) and (b) on successive government and private employment, given his prior IRS service, and that the situation might give rise to a violation of Rule 1.7(b) if his representation of clients before the agent with whom he had the agreement were materially limited by his own interest in preserving the agent's good will.

Currency note

This opinion was issued in 1993, before Illinois adopted the 2010 Illinois Rules of Professional Conduct. The ISBA Board of Governors affirmed the opinion in May 2010 as generally consistent with the 2010 Rules (referring to Rules 1.7, 1.11, and 7.2(b)), while noting the specific standards referenced may differ from the 2010 Rules. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule or requirement mentioned here.

Common questions

Q: Can a lawyer discount a government agent's family fees in exchange for career help?

A: The opinion concluded the lawyer may not, because the discount is a thing of value given for recommending his services, violating Rule 7.2(b).

Q: Does the lawyer's prior government employment matter?

A: The opinion concluded the lawyer should heed Rule 1.11(a) and (b) on successive government and private employment, given his prior IRS service and his current practice before that office.

Q: Could the arrangement create a conflict of interest?

A: The opinion concluded it might violate Rule 1.7(b) if the lawyer's representation of clients before the agent were materially limited by his own interest in preserving the agent's good will.

Background and rules framework

The opinion interpreted Rule 7.2(b) (no giving value for recommendations), Rule 1.7(b) (own-interest material-limitation conflict), and Rule 1.11(a) and (b) (successive government and private employment) (Model Rules 7.2, 1.7, 1.11).

Citations and references

Rules of Professional Conduct:

• Model Rule 7.2 (payment for recommendations) / Illinois Rule 7.2(b)
• Model Rule 1.7 (conflict of interest: current clients) / Illinois Rule 1.7(b)
• Model Rule 1.11 (successive government and private employment) / Illinois Rule 1.11(a), (b)

See also

• ISBA Ethics Op. 94-08: Paying a Nonlawyer for Client Referrals
• ISBA Ethics Op. 03-06: Fee Sharing Upon a Partner Becoming a Government Prosecutor

Source

• Landing page: https://www.isba.org/ethics/opinions/9216