The Internal Revenue Service (IRS) has issued new proposed regulations that would further limit the IRS’s ability to use private attorneys as contractors. The newly proposed regulations, published on 7 August 2020 (“2020 Proposed Regulations”), replace proposed regulations issued in 2018. The 2020 Proposed Regulations are the IRS’s first response to the 1999 passage of the Taxpayer First Act, which barred nongovernmental attorneys from questioning witnesses under oath in summons interviews. The newly proposed regulations forbid the IRS from sharing taxpayer books and records with attorney outside contractors, except under limited conditions. The newly proposed regulations also forbid outside contractors from asking a summoned person’s representative to clarify an objection or an assertion of privilege.
Daniel A. Rosen is a partner in the North America Tax Practice Group in New York. He is a seasoned tax lawyer with over 16 years of experience with the Internal Revenue Service. Mr. Rosen was a key participant in the drafting of published guidance and administrative directives involving judicial doctrines for the IRS Large Business and International Division (LB&I). He served as IRS counsel in many cases that resulted in published opinions and is a frequent speaker for George Washington University School of Law, the Practising Law Institute, Tax Executives Institute and the ABA. Additionally, Mr. Rosen served during law school as business editor of the Hofstra Law Review. He is an adjunct professor of law at New York Law School.