The Attorney-Client privilege is one of the most important, fundamental, and respected protections between a client and his attorney. Because an attorney cannot divulge client confidences (and cannot – in most instances – be forced to), it fosters an open and honest environment. It is critical and central to the relationship. But does that privilege extend to tax preparation? The answer is – sort of. If the communications relate only to tax prep, then no, there is no privilege. If, however, the communication is sought to obtain legal advice on a tax claim or tax position, then yes, it may be protected. But it can be a fine line. This general rule concerning privilege also applies to Attorneys utilizing CPAs in tax cases, also known as Kovel relationships. The Attorney-client privilege can extend to CPAs being utilized but there are limits; for example, pure tax preparation is not protected. And remember, no communications to your general accountant and CPA (without a Koveled relationship with an attorney) are protected; as such, accountants and CPAs may be called to testify against a taxpayer.