While the attorney-client privilege provides protection for communications between lawyers and clients, that protection can be lost through waiver. The most obvious example is an express waiver, but courts also recognize that a waiver can occur in situation where an individual essentially puts privileged communications in issue by pleading a claim or defense. Last week, the Tax Court looked at implied waiver of privilege in the context of a challenge to penalty determinations. AD Inv. 2000 Fund LLC v Comm’r, 2014 U.S. Tax Ct. LEXIS 13 (Apr. 16, 2014).
AD Investment arose in a consolidated partnership level proceeding involving two LLCs that elected partnership treatment and engaged in a “Son of BOSS” tax shelter.… Read More