Yo Greenie!

I see this at the bottom of every email I get from our outside counsel and advisors one of which is a Big 4. How the F does a Big 4 get away with stating the following when they are hired to help us with tax guidance!?

So we ask a question, and they give an answer, but the answer may not be communicated to the IRS to avoid penalities/fines/errors. That is how I read it. It would be like one of the BSD analysts on the forum telling their boss/client/etc, “Here is my analysis, but this analysis cannot be used in the portfolio management process.” You’d be on your ass real fast for a statement like that.

U.S. Treasury Department Circular 230 Disclosure: In accordance with applicable professional regulations, please understand that any written advice contained in, forwarded with, or attached to this communication is not a tax opinion and is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding any penalties that may be imposed under the Internal Revenue code or applicable state or local law provisions or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

They’re forgetting to put in “unless expressly stated otherwise”.

Just because they’re a Big 4 firm doesn’t mean they know anything about taxes. There are lots of auditors who don’t know squat about taxes.

Are you sure they’re tax people and not auditors?

I think this is to avoid you telling the IRS “I tried to avoid taxes this way because KPMG told me”. It protects the accounting firm from the IRS and from you, if you sue them because their advice did not work.

There is a difference between a tax opinion and tax advice. A clear legal line. I’m sure most Big 4 shops would have a substantial committee and legal review before issuing an opinion. Some junior guy isn’t going to be issuing tax opinions. An opinion can help you avoid penalties if you rely on it. But a crappy opinion can get the Big 4 guy in big trouble professionally and legally. Advice and an opinion are two different things.

And they don’t have to send it anymore. Google “circ 230 disclosure” and click on the 2nd or 3rd link.

If you read accountant’s dislcosures on engagement letters, they all contain this sort of stuff that basically keeps them innoncent unless they kill your first born.

When I worked in Big 4, our server would automatically apply that to all external emails coming from a person who worked in the tax side of the firm.

Everyone in my company is required to have the following:

As required by new U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this email, including attachments, is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.

So you’re saying we don’t need that anymore?

^Might be required by your company, but it’s not required by the IRS.

In fact, what you’re saying is incorrect. As of June 2014, it is NOT required by US treasury rules.

You’re allowed to say, “you can’t use this e-mail to avoid penalties”. But you’re NOT allowed to say, “The IRS requires us to tell you that you can’t use this e-mail to avoid penalties.”

Again, just google “Circ 230 disclosure”.

^ Thanks. I did Google Circ 230 disclosure and read a few of the links, but my mind is mush this afternoon and it was easier to just ask you and accept the possibility that you might bitch slap me with a LMGTFY link.

Ida posted the link for you, but I’m still unable to paste anything when using IE11.

But if I open AF using Chrome, I get a bunch of DVDA and glory-hole type of stuff in the banners on top. On IE, it’s all Creighton Boot Camp and Wiley Elan guies.

Yet another reason Chrome is the better choice.