The privilege does not apply to communications that would not be protected by the attorney-client privilege. For example, information disclosed to an attorney for purposes of preparing a tax return is not privileged. Similarly, the privilege is waived under the same rules that apply to the attorney-client privilege. Because of these limitations, Taxpayers should remain very cautious with respect to disclosures to tax practitioners. These new rules apply to communications made on or after the date of enactment.
Taxpayers now have the right to quash a third-party summons in certain circumstances.
The IRS is required to give Taxpayers prior notice of contact with third parties and must also give Taxpayers periodic records of persons contacted by the IRS during the course of an examination. IRS representatives have confirmed that they have been made aware of the change in culture that is expected under the new law. All rights reserved. Click here to read our Disclaimer .