Solving The Privilege-Penalty Predicament: Part 1

Law360, New York (June 26, 2017, 2:55 PM EDT) -- In 2014, in AD Investment,[1] the U.S. Tax Court held that by asserting penalty defenses, two partnerships waived the attorney-client privilege. Our purpose here is to examine the consequences and their effect on tax compliance and fairness in tax litigation.[2]

From there, we offer a procedural solution to balance fairness to the IRS with fairness to the taxpayer, while fulfilling the congressional intent of using penalties to encourage voluntary compliance. Finally, we close with some best practices for taxpayers facing these issues.

The Case: AD Investment 2000 Fund

AD Investment was one of a series of cases involving so-called "Son-of-BOSS" transactions....

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Related Sections

Law Firms

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!