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Firm Can’t Assert Categorical Privilege Against IRS Summons (1)

Aug. 5, 2022, 6:57 PMUpdated: Aug. 5, 2022, 7:36 PM

A law firm can’t block an IRS demand for documents tied to captive insurance arrangements simply by categorically asserting attorney-client privilege, an appeals court ruled.

The case arose after Moore, Ingram, Johnson & Steele LLP failed to fully comply with an IRS summons issued as part of an investigation into whether the law firm owes tax penalties for organizing, promoting, or selling an abusive captive insurance plan or arrangement. Captive insurance transactions can qualify for tax breaks, but the IRS believes some are being used as abusive tax avoidance vehicles.

The unpublished Friday opinion from ...