Courts Reject Kovel - No Attorney-Client Privilege for the Accountant (Golding & Golding)

Courts Reject Kovel – No Attorney-Client Privilege for the Accountant (Golding & Golding)

Courts Reject Kovel – No Attorney-Client Privilege for the Accountant

Offshore Disclosure is a Tax & Legal Submission

When a person decides to submit an offshore tax disclosure (aka Offshore Disclosure, Voluntary Disclosure or Tax Amnesty) to the IRS, it is a tax submission facilitated through legal representation — in order to protect your rights under the Attorney-Client Privilege.

Case: Cavallaro vs. United States

Cavallaro shows the limitation of Kovel.

In Cavallaro, the attorneys tried to expand the Kovel protection beyond its very limited application by claiming the Accountant was necessary.

The Court’s Holding in Cavallaro Rejects Kovel since the CPA was not Necessary

Kovel requires that to sustain a privilege an accountant must be “necessary, or at least highly useful, for the effective consultation between the client and the lawyer which the privilege is designed to permit.” 296 F.2d at 922.

As provided in Cavallaro:

 “[B]ecause Ernst & Young was providing accounting services and so the Kovel extension of the privilege is inapplicable…

Golding & Golding: About our International Tax Law Firm

Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure

Contact our firm today for assistance.