The top charge in the federal election interference indictment against former President Trump alleges a conspiracy to defraud the government by impairing, obstructing and defeating the lawful federal governmental function of certifying presidential election results. That nontax conspiracy charge is based on the same precedent that undergirds many tax conspiracy charges.
On September 4, 2023
The IRS has been understaffed for many years, and this has led to a decline in the number of audits conducted. The personnel shortage has also made it difficult to keep up with the growing complexity of the tax code and to audit high-income taxpayers, partnerships, and large corporations.
The IRS solution is a plan
It is well-established that attorneys and their clients are entitled to private and protected communications. But what level of protections are available when an accountant is used in an engagement to provide an area of expertise not possessed by the attorney?
This is a significant question because accountants are frequently relied upon as indispensable members of legal teams because they have the ability to properly interpret complex technical accounting concepts and explain them to lawyers, judges and juries. When utilizing accountants in legal matters, the level of protections afforded will often depend on the agreement entered into between the parties.
As an initial matter, parties involved in legal disputes should understand that the accountant-client privilege generally does not provide the same level of protections as the attorney-client privilege. Relying solely on the accountant-client privilege presents substantial risks for the client. Rather, the parties should recognize and consider the benefits of entering into a Kovel Agreement to protect their communications.