Attorney-at-Law

THE FORTY MILLION – PART DEUX

In Uncategorized on 05/15/2015 at 16:03

The ongoing discovery tug-of-war between IRS and Eaton Corporation and Subsidiaries, Docket No. 5576-12, filed palindromically on 5/15/15, goes on apace, and Judge Kerrigan is in the midst of it all.

Readers of this blog, if not long since bored with this ongoing bunfight, will recall my blogpost “The Forty Million,” 4/24/15, wherein Eaton’s counsel unloaded forty million (count ‘em, forty million) pages of documents via an e-dump of some 67,108,864 kilobytes.

Well, when you unencumber yourself in that fashion, some stuff slips through.

“Respondent’s [IRS’s] motion seeks a determination whether a two-page document that has been provided to respondent in the informal consultation process is protected by the attorney-client privilege. Upon review of the document, respondent notified petitioner of the potential disclosure of privileged information. In response, petitioner requested that respondent destroy the document. Petitioner inadvertently sent the document without making redactions. Respondent contends that the document does not contain privileged information and even if the document included privileged information, petitioner waived its privileges by making the reasonable cause, good faith, and reasonable reliance allegations in its petition.” Order, at p. 1.

For more about reasonable cause, good faith and all that Section 6664(c) jazz, see my blogpost “Everything Has An End,” 10/10/12.

Eaton claims that the two-pager has information about filing deadlines, and the author and recipient have the benefit of the Section 7525 umbrella that shades “any authorized federal tax practitioner” with client-attorney privilege.

Judge Kerrigan decides that somber reasoning and copious citation of precedent are unnecessary.

“The communication at issue is between two employees of petitioner’s accounting firm. Petitioner has not shown why this document should be treated as a document subject to the attorney-client privilege.” Order, at p. 2.

My readers, I am sure, as well as I, eagerly await the 8/5/15 commencement of trial. We can then put all this behind us.

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