This blog entry from over at The Sovereign Man blog uncovers a scary court ruling from last Wednesday:
Yet in a United States Tax Court decision announced on Wednesday, the court dismissed attorney client privilege, stating that:
“When a person puts into issue his subjective intent in deciding how to comply with the law, he may forfeit the privilege afforded attorney-client communications.”
In other words, if a person works with legal counsel within the confines of the tax code to legitimately minimize the amount of taxes owed, that communication is no longer protected by attorney-client privilege.
Furthermore, the ruling states that if the individuals do not submit attorney-client documentation as required, then the court would prohibit them from introducing any evidence to demonstrate their innocence.