Confidentiality Protection

Under new law, the confidentiality protection that you have with an attorney has been expanded to apply to certain communications you have with federally authorized practitioners in general. Federally authorized practitioners can be attorneys, certified public accountants, enrolled agents, or enrolled actuaries allowed to practice before the IRS. This new provision is effective for communications made after July 21, 1998.

You cannot use this confidentiality protection in any administrative or court proceeding with an agency other than the IRS.

Confidential communications are those that:

• Advise you on tax matters within the scope of the practitioner's authority to practice before the IRS,
• Would be confidential between you and an attorney, and
• Relate to noncriminal tax matters before the IRS or noncriminal tax proceedings brought in federal court by or against the United States.

Confidential communications are not those that:

• Take place between a federally authorized practitioner and a corporate director, shareholder, officer, employee, agent, or representative, and
• Promote the corporation's participation in a tax shelter. A tax shelter is any entity, plan, or arrangement, a significant purpose of which is the evasion of income tax.

Under prior law, confidentiality protection generally existed only for certain communications between an attorney and his or her client.

Previous | First | Next

Publication 553 | 1998 Tax Year Archives | Tax Help Archives | Home