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Cooperative Tax Advice and the Attorney-Client Privilege

In advising cooperatives, AHC attorney David Cook relies on the attorney-client privilege to protect communications with clients from disclosure to courts, tax authorities, and others. The attorney-client privilege is fundamental to ensuring clients (cooperatives) receive relevant, timely, and helpful tax advice.

On January 9, 2023, the U.S. Supreme Court will hear arguments about the scope of the attorney-client privilege with regard to tax matters. While communications about tax filings and forms may not be subject to the privilege or other protections, communications with attorneys about tax positions and implications are generally subject to the attorney-client privilege.  Communications that blur the line between these two purposes are called “dual-purpose communications.” They are the subject of the Supreme Court’s upcoming oral argument and eventual decision in the case In Re Grand Jury

As an attorney who advises rural utility cooperatives and Subchapter T cooperatives about cooperative tax law (and as a former tax accountant), David is keenly interested in the result of this case.

See the petition here: In Re Grand Jury.