This means that information obtained by an accountant under a Kovel agreement should be distinguished from the information the accountant collects as an accountant or as a different accountant. Keep things as separate and well documented as possible. This may include the use of another audit firm for audit or other work where possible. If there is an existing relationship between the accountant and the client, it may be more difficult to support the idea that the accountant was hired by the lawyer to assist the lawyer in his or her legal work. In this case, the lawyer may seek out and hire a new accountant; This helps to ensure that the accountant works for the lawyer and provides clear lines to display the information the accountant learned during the legal representation, instead of information that a long-time accountant might otherwise have known. In addition, the lawyer, in order to prove a Kovel agreement, can pay the accountant`s fees or approve at least all fees before payment. However, in all cases where a client attempts to protect the advice of an accountant under Kovel, such protection is uncertain, even if the parties have entered into a formal agreement. Members should be aware of the limitations of a proposed agreement. The Client Attorney Privilege has protected the client`s confidentiality between a lawyer and a client. Once again, there is no clear test for the rejection of a Kovel agreement. Some examples when a Kovel agreement may not be appropriate are: Properly executed, it matters solicitor-client privileges in the work and communication of the accountant. However, the IRS`s recent complaints are eroding.
For example, in the United States v. Richey, the Ninth Circle refused to protect an assessment that a taxpayer, a lawyer and an accountant attempted to make from the IRS. In the United States v. Hatfield, the court forced the disclosure of conversations between the lawyer and the accountant. . Kovel`s letter is the creation of a federal call holding company and is not prescribed by law. The scope and application of solicitor-client-privilege is generally a matter of state law, and each state and district of Columbia has its own authority with respect to the application of education. However, as a general rule, solicitor-client privilege applies: (1) if legal advice is sought, (2) communications made to an advisor as a lawyer (3) when the disclosure relates to facts of which a lawyer has been informed by his client without an outsider present, in order to obtain either consultation or advice on the application of the law. (b) legal services or (c) representation of interests. Privilege is not available if advice is sought for purposes or to promote an offence or unlawful act and the client cannot have waived the privilege.