The expanded taxpayer confidentiality privilege: A review and assessment of IRC section 7525

Abstract

For taxpayer communications made after July 21 1998 IRC Section 7525 extends a confidentiality privilege to tax advice furnished in non-criminal proceedings by certified public accountants and other federally authorized tax practitioners to the extent such communication would be privileged if it took place between a taxpayer and an attorney. However, subsequent to the enactment of the statute, concerns have been raised about the scope and usefulness of the accountant-client privilege. This article presents an examination of the historical development, statutory provisions, and limitations of IRC Section 7525. It also evaluates, through the use of survey responses, the impact of the privilege on the accounting profession. This study is valuable because it is one of the first to examine the confidentiality privilege by using feedback (via a survey) from the accounting profession.

Citation

Bauman, C.C. and Fowler, A.C. (2002), "The expanded taxpayer confidentiality privilege: A review and assessment of IRC section 7525", Advances in Taxation (Advances in Taxation, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 37-64. https://doi.org/10.1016/S1058-7497(02)14005-1