Are communications surrounding the seeking of tax advice protected by the Attorney Client Privilege?
The bulk of tax attorney-client privilege cases involve federal evidence law. Federal Rule of Evidence 501, which states simply: “The privilege of a witness, person, government, State, or political subdivision thereof shall be governed by the principles of the common law as they may be interpreted by the courts of the United States in the light of reason and experience.” Thus, the basic rules of the federal attorney client privilege are not codified and are established entirely through case law. A number of federal cases have held that confidential attorney-client communications associated with the giving of tax advice are protected by the attorney-client privilege. A number of courts, however, have also long expressed that the privilege does not protect certain documents and communications in the return preparation context-hereafter referred to as the return preparation exception.” Unfortunately, the return preparation exception has not always been well explained or consistently appli
