42-2069

42-2069. Taxpayer communications with
practitioners; confidentiality; definitions

A. With respect to tax advice, the same common law protections of confidentiality
that apply to a communication between a taxpayer and an attorney also apply to a
communication between a taxpayer and a federally authorized tax practitioner to the
extent that the communication would be considered to be a privileged communication if it
were between a taxpayer and an attorney.

B. Subsection A of this section may only be asserted in:

1. A noncriminal tax matter before the department.

2. A proceeding before the state board of tax appeals.

3. A noncriminal tax proceeding in court.

C. The department may deny an individual coverage under this privilege if it
determines that a practitioner has engaged in activities or practices involving matters
before the department that, if they involved matters before the United States internal
revenue service, would result in the practitioner losing the authorization to practice
before the internal revenue service. A practitioner aggrieved by a determination to deny
the privilege may appeal that determination pursuant to section 42-1253 or 42-1254.

D. For the purposes of this section:

1. "Federally authorized tax practitioner" means an individual who is authorized
under federal law to practice before the United States internal revenue service if the
practice is subject to federal regulation under 31 United States Code section
330. Federally authorized tax practitioner includes any person who is engaged in
practice with one or more federally authorized tax practitioners and who is subject to
the same standards of practice and ethics requirements as a federally authorized tax
practitioner.

2. "Tax advice" means advice given by an individual with respect to a matter that
is within the scope of the individual's authority to practice as a federally authorized
tax practitioner.