Tax Attorney Disclosure of Client Information
Communications between a client and their tax attorney are often protected by the attorney-client privilege. Furthermore, written communications between the client and tax attorney can be protected by the work-product privilege. These privileges prohibit the tax attorney from disclosing confidential information in court.
Whereas, communications between a non-tax attorney and their clients (such as accountants or other persons holding themselves out as tax practitioners) are typically not privileged, which could result in the government compelling your tax advisor to testify against their client in court.
Out of court, licensed tax attorneys are prohibited from disclosing a client’s confidential information by way of local rules of professional conduct, which are enforced through local bar ethics committees. Typically local rules of professional conduct prohibit the disclosure of all information provided to the tax attorney (1) that is not necessary for the representation of the client, (2) information that is not likely to result in imminent and substantial bodily injury to a third party, and (3) information used to defend the tax attorney against a civil lawsuit filed by the client or a criminal suit brought by the government against the tax attorney. The penalty for a licensed attorney disclosing confidential client information can be quite severe – including suspension or disbarment from practicing law. Non-tax attorney practitioners are not governed by these rules.
An experienced tax attorney can help answer your confidentiality questions.
