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A Kovel agreement can privilege communication from your CPA


Attorney-client privilege is a legal concept that protects confidential communications between attorneys and clients that are made for the purpose of obtaining or giving legal advice. The privilege, which is owned by the client, is intended to encourage full and candid communications between attorneys and their clients without the fear that such communications will be disclosed to a third party.

Such an arrangement does not automatically extend to a client speaking with their CPA, but there can be a way around this for clients with sensitive matters to discuss.  By engaging with legal counsel first, who in turn executes a Kovel agreement with the CPA, the client and legal team can get privileged tax and accounting expertise.

Similar to a CPA firm’s engagement letter with its client, a Kovel agreement between counsel and the CPA governs the services between the parties. Before signing the agreement, the CPA should review the document with their own counsel and consider the following:

For additional information on what kinds of engagements may require a Kovel agreement, speak with your ShindelRock tax professional [2] or an attorney.