Can a lawyer turn over client files and unredacted financial records to the state Department of Revenue during a tax audit without the client's consent?

Plain-English summary

A lawyer whose real estate and tax practice was under audit by the Washington Department of Revenue (DOR) asked whether he could give the DOR access to client files, including unredacted financial records, without the clients' consent in order to comply with the audit demand. The committee unanimously declined to issue a new opinion, finding that its existing Advisory Opinions 194 and 195 were dispositive of the question.

On the substance, the committee stated that RPC 1.6 obligates the lawyer to keep client files and unredacted client-related financial records confidential, even if demanded by the Washington Department of Revenue, and that such information may not be disclosed without the clients' permission.

In practice

Under the Washington rules as they stood at the time of the opinion, the committee stated that RPC 1.6 bars the lawyer from disclosing client files and unredacted client-related financial records to the Department of Revenue in an audit without the clients' permission. The committee treated the question as already resolved by its Advisory Opinions 194 and 195 and declined to issue a further opinion.

Common questions

Q: Can a Washington lawyer give the Department of Revenue client files during an audit without client consent?

A: No. The committee stated RPC 1.6 obligates the lawyer to keep client files and unredacted client-related financial records confidential even when demanded by the DOR, absent the clients' permission.

Q: Does the DOR's audit demand override the confidentiality duty?

A: The committee said the information shall not be disclosed without the clients' permission, treating RPC 1.6 as controlling against the audit demand on the facts presented.

Q: Did the committee issue a full opinion?

A: No. The committee unanimously declined to issue a new opinion, finding its existing Advisory Opinions 194 and 195 dispositive of the question.

Background and rules framework

The opinion applies Washington RPC 1.6 (Model Rule 1.6, confidentiality of information relating to the representation) to a state tax-audit demand for client files and financial records. The committee pointed to its prior Advisory Opinions 194 and 195 as already controlling the question, rather than conducting a fresh analysis.

Citations and references

Rules of Professional Conduct:

• Model Rule 1.6 / Washington RPC 1.6 (confidentiality of information relating to the representation)

Other opinions cited:

• WSBA Advisory Opinions 194 and 195 (treated as dispositive of the confidentiality question)

See also

• ABA Formal Op. 94-385: subpoenas of a lawyer's files
• WA Ethics Op. 2229: confidentiality and reporting a client

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=1667

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Advisory Opinion: 2218
Year Issued: 2012
RPC(s): RPC 1.6
Subject: Disclosure of Client Information during Department of Revenue (DOR) Audit

An inquiring lawyer requested an opinion from the Committee regarding whether he may provide access to client files without the client’s consent, including unredacted financial records, to comply with a demand from the Department of Revenue which is conducting an audit on his real estate and tax practice. The committee opined as follows:

“The Committee has reviewed your inquiry and has unanimously declined to issue an opinion based upon their determination that existing Advisory Opinions 194 and 195 are dispositive of your question. Rule of Professional Conduct 1.6 obligates you to keep confidential client files and unredacted client related financial records, even if demanded by the State of Washington Department of Revenue. Such information shall not be disclosed without clients’ permission. No further opinion is necessary.”