What is a Kovel letter?

A Kovel letter is used in very-limited situations, in which an attorney wants to try to extend the attorney-client privilege on matters involving highly-complex accounting/tax situations only. When Kovel is not used correctly, it jeopardizes the attorney-client privilege.

What is a Kovel engagement letter?

In a Kovel engagement, the attorney retains the non-legal professional to provide technical advice that enhances the attorney’s ability to provide informed legal advice to her client. Kovel engagements take their name from a 1961 appellate court decision, United States v. Kovel, 296 F.

What is the Kovel rule?

The Kovel Rule extends the attorney-client privilege to communications between accountants and their clients, as well as communications between lawyers and accountants. In Adams, a federal district court applied the Kovel Rule to shield emails from being disclosed to the Government.

How do you mark an email as attorney-client privilege?

To be safe put “Attorney-Client Communication”, “Privileged and Confidential” or “Attorney Work Product” in the subject of the e-mail, or on privileged documents.

What is Kovel privilege?

In United States v. Kovel, the Second Circuit found that the attorney–client privilege extended to communications between an attorney and a third-party consultant who acted as an interpreter.

What is a Kovel accountant?

The term Kovel accountant is based upon the case of United States v. Kovel, 296 F. 2d 918 (2d Cir. 1961). Kovel accountants are hired when a tax attorney is concerned that conduct by his client, or in some cases lack of conduct, could result in criminal tax charges being brought.

Is an engagement letter privileged?

Aside from being privileged, engagement letters are generally not relevant under Rule 26.

Are emails subject to attorney-client privilege?

Emailed correspondence between attorney and client is privileged. However, the client can take some actions which will waive this attorney client privilege.

What is Section 7525 of the IRS code?

Sec. 7525 provides a limited privilege to communications between a federally authorized tax practitioner and a taxpayer to the extent the communication would be considered privileged if it were between an attorney and a taxpayer.

Are retainer letters privileged?

Retainer agreements are not privileged, however, unless they reveal a confidential communication of legal advice — the identity of the client, the fee arrangement, and the fact of retention are not privileged because they only involve the incidents of representation.

Is a legal retainer privileged?

While His Honour agreed that generally a retainer was not a document protected by legal professional privilege, he also noted that this proposition is not absolute and that an examination of the specific content of each retainer must be conducted to assess whether they are “within the sphere of protection provided by …