Question

Bob retained Wanda, a CPA, to prepare his federal income tax return. In the course of preparing the return, Wanda had several conferences with Bob, during which conferences she made notes. In addition, Bob furnished Wanda with a number of documents concerning transactions in which Bob had been involved. The IRS ultimately brought suit against Bob, claiming that he had underpaid his actual tax liability by a substantial amount. The IRS arranged for a subpoena to be served on Wanda. The subpoena purported to require her to produce, in court, Bob's documents and the notes she had made during conversations with Bob. Wanda sought to resist the order on the basis that the conversations were held in confidence, for the purpose of preparing Bob's tax return, and that the notes were made and documents were delivered in furtherance of the same purpose. Wanda claimed, therefore, that what the IRS sought was privileged information and that since neither she nor Bob had waived the privilege, she should not have to produce what the IRS sought. Is Wanda's argument sound? Why or why not?

Answer

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