Tax News

CCH (cch.taxgroup.com) reports:

  A corporation was required to produce certain documents that it received from its tax advisors and that had been withheld as privileged or non-responsive to an IRS summons. The documents did not discuss federal tax issues; rather, they contained information generally gathered to facilitate the filing of a tax return. Such accounting advice was not covered by the tax practitioner privilege. Several memoranda and notes were not privileged because they did not reflect confidential communication between a client and tax practitioner for the purpose of providing federal income tax advice.

  The government also met its burden of showing that the withheld and redacted documents relating to the corporation's transactions surrounding its merger with a Canadian company fell within the tax shelter exception to the tax practitioner privilege and were, therefore, required to be fully disclosed. The communications between the corporation and its tax advisors were made in connection with the promotion of the corporation's participation in a tax shelter as defined in Code Sec. 6662(d)(2)(C)(ii).

  Affirming a DC Ill. decision, 2008-2 USTC ¶50,482.

Valero Energy Corporation, CA-7, 2009-1 USTC ¶50,445

Other References:

 
Code Sec. 7525

  CCH Reference - 2009FED ¶42,816F.25

  Tax Research Consultant

  CCH Reference - TRC IRS: 21,404