§ 7525. — Confidentiality privileges relating to taxpayer communications.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 26USC7525]
TITLE 26--INTERNAL REVENUE CODE
Subtitle F--Procedure and Administration
CHAPTER 77--MISCELLANEOUS PROVISIONS
Sec. 7525. Confidentiality privileges relating to taxpayer
communications
(a) Uniform application to taxpayer communications with federally
authorized practitioners
(1) General rule
With respect to tax advice, the same common law protections of
confidentiality which apply to a communication between a taxpayer
and an attorney shall also apply to a communication between a
taxpayer and any federally authorized tax practitioner to the extent
the communication would be considered a privileged communication if
it were between a taxpayer and an attorney.
(2) Limitations
Paragraph (1) may only be asserted in--
(A) any noncriminal tax matter before the Internal Revenue
Service; and
(B) any noncriminal tax proceeding in Federal court brought
by or against the United States.
(3) Definitions
For purposes of this subsection--
(A) Federally authorized tax practitioner
The term ``federally authorized tax practitioner'' means any
individual who is authorized under Federal law to practice
before the Internal Revenue Service if such practice is subject
to Federal regulation under section 330 of title 31, United
States Code.
(B) Tax advice
The term ``tax advice'' means advice given by an individual
with respect to a matter which is within the scope of the
individual's authority to practice described in subparagraph
(A).
(b) Section not to apply to communications regarding corporate tax
shelters
The privilege under subsection (a) shall not apply to any written
communication between a federally authorized tax practitioner and a
director, shareholder, officer, or employee, agent, or representative of
a corporation in connection with the promotion of the direct or indirect
participation of such corporation in any tax shelter (as defined in
section 6662(d)(2)(C)(iii)).
(Added Pub. L. 105-206, title III, Sec. 3411(a), July 22, 1998, 112
Stat. 750.)
Effective Date
Pub. L. 105-206, title III, Sec. 3411(c), July 22, 1998, 112 Stat.
751, provided that: ``The amendments made by this section [enacting this
section] shall apply to communications made on or after the date of the
enactment of this Act [July 22, 1998].''
