CCA 200932057: Tax-return preparation documents generally are not privileged

Plain-English summary

Chief Counsel advice addressed attorney-client privilege and work-product protection for documents and information obtained to prepare a tax return. The advice states that tax-return preparation materials are not covered by those protections. It characterizes tax-return preparation as primarily an accounting service rather than a legal service.

Ruling snapshot

• Question: Are documents and information obtained to prepare a tax return protected by attorney-client privilege or the work-product doctrine?
• Outcome: Advice given
• Key authorities: IRC § 7602; United States v. Frederick, 182 F.3d 496, 500-01 (7th Cir. 1996); United States v. Davis, 636 F.2d 1028, 1043 (5th Cir. 1981)

Full text (IRS public release)

ID: CCA-102180-08 Number: 200932057
Release Date: 8/7/2009
Office: --------------
UILC: 7602.06-01, 7602.09-01

From: ------------------------
Sent: Thursday, October 2, 2008 6:08 p.m.
To: ---------------------
Cc:
Subject: FW: ATAT Assistance - Attorney-Client Privilege ---------

Please see below. I'm not aware of any authoritative internal document prepared in the context of ATAT that discusses this point, but the privilege question on tax return preparation activities appears to be well- settled. Please call me if you wish to discuss this further.

__________
From:
Sent: Thursday, October 02, 2008 7:16 AM
To:
Subject: RE: ATAT Assistance - Attorney -Client Privilege

Yes, that is correct. I don't know if there is a seminal case but I did a few short minutes of research. Documents and information obtained for the purpose of preparing a tax return are not covered by attorney-client privilege or work product doctrine. United States v. Frederick, 182 F.3d 496, 500-01 (7th Cir. 1996); United States v. Davis, 636 F.2d 1028, 1043 (5th Cir. 1981) (preparation of tax returns is primarily an accounting service, not a legal one, and accounting services are ordinarily not privileged).