Protecting Taxpayers and Business Professionals from the IRS and California Tax Agencies
The Attorney-Client Privilege is a critical protection when dealing with the IRS for any issue, including an audit or coming into compliance with FBARs. It also protects our clients in cases involving California tax agencies and even extends to business litigation and other disputes.
The Attorney-Client Privilege is deeply rooted in federal and state laws, and it allows attorneys and their clients to have open and candid conversations without fear of the information being compelled via subpoena by either the IRS, a California tax agency, or opposing counsel in litigation. Under this protection, all of your conversations and the information you properly disclose in person, via email, text or in writing are protected by the attorney-client privilege.
What is Different About the Attorney-Client Relationship than a Client’s Relationship with Other Professionals such as a CPA, Financial Advisor, or Tax Preparer?
Any taxpayer is wise to seek the counsel of qualified and expert professionals when dealing with the IRS. Business clients must share confidential and sometimes sensitive information in order to prepare a defense in a lawsuit. The question for taxpayers and business owners alike is this:
“Which professional can best advise you while protecting your interests?”
When facing an audit from the IRS, a California tax agency, or potential criminal tax exposure due to offshore banking, investments, and assets, it is important to be able to share sensitive information in order to make prudent decisions. You, as a taxpayer, must be able to freely provide and discuss a wide variety of information and records with your advisor(s) in order to prepare filings and responses to the IRS and other agencies. In many cases, this information could be used against you by the IRS or opposing counsel in order to increase your exposure and lead to a conclusion that is not in your best interests.
Your potential exposure is daunting:
“The IRS and California tax agencies can use the power of subpoena to compel all information you have provided in confidence to any professional tax preparer, financial advisor, or CPA.”
If you are working with a CPA, bookkeeper, or other tax advisor, the IRS can and will subpoena all of the records, notes and data associated with these conversations and use them against you. There is no confidentiality between a taxpayer and a CPA or tax advisor that the IRS must respect. This requires the taxpayer to carefully consider what information to disclose to their accountant or tax preparer.
Only an attorney can provide the protection of the attorney-client privilege.
You can fully disclose all information to us so that we can work with you to determine the best way forward while protecting you from the IRS or opposing parties in a lawsuit. As your legal and tax representative, we are also able to handle all communications with the IRS and California tax agencies on your behalf. This protects you from inadvertently disclosing a piece of information that might be used against you, and prevents the IRS or California tax agency from seeking additional information that you have provided to us in confidence.
Contact Our Experienced Attorneys and Take Advantage of the Attorney-Client Privilege
Janathan Allen is a tax attorney with extensive accounting expertise. Allen Barron provides comprehensive business and accounting services that allow you to accomplish multiple business objectives with a single source vendor. Janathan Allen manages our attorneys, legal staff, and accounting services group to ensure that all needs are completed as expediently and cost-effectively as possible, while protecting your exposure and your financial interests.
If you are facing a California or IRS audit, are exposed to potential penalties or criminal tax exposure due to foreign bank accounts, investments, or assets, it is important that you fully understand the nature of your exposure and the options available to you. The attorney-client privilege is a valuable protection and one should never face the IRS or other tax agency without it. Call us for a free consultation at 866-631-3470 or contact our office to schedule an appointment to meet in person. We will discuss your concerns, the challenges you face, and the value that attorney-client privilege can bring to your case.