By The Associated Press
WASHINGTON -- A federal judge ordered the law firm Jenkens & Gilchrist to release names of tax shelter investors to the IRS, which believes taxpayers used abusive shelters sold or organized in the firm's Chicago office to shield at least $2.4 billion from federal income taxes.
The order, issued by Judge James B. Moran of the U.S. District Court, Northern District of Illinois, follows a separate court decision ordering accounting giant KPMG to release the names of its tax shelter investors to the Internal Revenue Service.
In both cases, judges rejected claims that revealing the investors' identities to the IRS would violate confidentiality privileges between attorneys and their clients.
``The government is winning,'' said IRS Commissioner Mark Everson. ``The message to taxpayers who invested in these schemes is clear. We are going to find you.''
In a written statement, Jenkens & Gilchrist said rules for attorney-client privileges related to tax shelters weren't clear when the IRS started pursuing information about its clients.
``What should not be forgotten as we come to the end of this process is that a lawyer has an ethical obligation to protect the confidences of a client unless it is clear that no basis for asserting that protection exists,'' the firm said. ``We obviously will respect those opinions and will no longer assert privilege arguments in similar situations.''
On Monday, the firm gave the IRS names of clients who used certain tax arrangements.
Source: New York Lawyer
