{'fraction_non_alphanumeric': 0.023197492163009405, 'fraction_numerical': 0.0, 'mean_word_length': 5.333333333333333, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Does the Attorney-Client Privilege Apply to Tax Lawyers?: An Examination of the Return Preparation Exception to Define the Parameters of Privilege in the Tax Context

Courts have long confirmed that tax lawyers are indeed practicing law, and the attorney-client privilege can apply to protect their confidential communications with clients. However, over the past several decades, a body of case law has emerged to indicate the attorney-client privilege is not applicable to certain communications associated with return preparation activities (return preparation exception). The return preparation exception is an inherently confusing concept because taxpayers do not seek tax advice in a vacuum; an attorney's tax advice will typically be reflected in some fashion on the taxpayer-client's returns. Thus, almost all tax advice is associated at least indirectly with return preparation activities. The case law has not clarified this inherent ambiguity. Indeed, recent cases have actually exacerbated the uncertainty. As a result, some practitioners (and one commentator) believe the return preparation exception is so broad that the attorney-client privilege is just inapplicable to tax lawyers. Although that is a minority viewpoint, there is not a clear understanding within the Tax Bar as to when the attorney-client privilege is (and is not) applicable in a tax law practice. In an attempt to bring greater certainty to this important issue, the article analyzes the voluminous case law, discusses trends, summarizes the current state of the law, and explores certain policy ramifications.