©2014 Thorpe Shwer, P.C. Thorpe Shwer is the owner of the copyright in this website. You may not copy, download, store, transmit, or otherwise make electronic or paper copies of this site, or any portion thereof, without express permission of Thorpe Shwer. Permission is freely granted for most requests. All other rights reserved.
The information contained in this website has been prepared by Thorpe Shwer for informational purposes only and is not legal advice. It is provided only as general information which may or may not reflect the most current legal developments. This information is not provided in the course of, and receipt of it does not constitute, an attorney-client relationship, and it does not substitute for obtaining legal advice from an attorney licensed in your state. Legal advice should take into account the specific facts of your situation, and you should not draw any particular conclusions from the information presented here. You should seek professional legal counsel before acting upon any of the information contained in this website. Before sending information to us, however, please speak with one of our lawyers and get authorization to send that information to us.
No attorney-client relationship is created by viewing this site. While we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you (an "engagement letter"). Similarly, no attorney-client relationship is created if you send us email. The best way for you to initiate a possible representation is to call one of our lawyers. He/she will first take you through our conflict of interest procedure and see that you are put in touch with the lawyer best suited to handle your matter. When you receive an engagement letter from the lawyer, you will be our client, and we may exchange information freely.
Any information provided to us before we have conducted a check for conflicts of interest and before we have agreed to represent you, is not subject to the attorney-client privilege or otherwise confidential and accordingly may be used by us for any purpose.
The use of Internet email for confidential or sensitive information, however, is discouraged, and we request that you first discuss with us by telephone the nature of the information you plan to send by this medium.
Contrary to popular belief, most states have strict rules for lawyer advertising that most lawyers rigorously follow. While this website complies with the rules of the states in which we have offices, Arizona, and we believe those of most other jurisdictions, Thorpe Shwer does not wish to represent anyone desiring representation based upon viewing this website in a jurisdiction in which it may not comply with all laws and ethics rules of that jurisdiction. However, we have presented information here that we believe will clearly inform you of our availability and, in the event you would like us to represent you, allow you to communicate with us at your convenience in accordance with the instructions regarding such communications provided elsewhere on this site.
The materials on this site are prepared by Thorpe Shwer. This site is a purely public resource of general information that is intended, but not guaranteed, to be correct and complete. It is not intended to be a source of solicitation or legal advice. Postings are not solicitations or legal advice and are for informational purposes only. This information is not intended to create and receipt of it does not constitute an attorney-client relationship. The reader should not rely or act upon any information in this site without seeking professional legal counsel. If you wish for Thorpe Shwer to consider representing you, please contact the firm directly.
The authors of this site are licensed in the State of Arizona. The authors provide and will provide links to other websites for lawyers and other law sources related to various topics, but the authors do not intend such links to be referrals for employment. Further, the authors cannot vouch for the truth or accuracy of those sites. The authors do not wish to represent anyone who viewed this site in a state where the site fails to comply with all laws and ethical rules of that state.
The authors grant permissions to readers to link to this site so long as this site is not misrepresented. The authors will remove any link to any site from this site upon request of the linked entity. This site is not sponsored or associated with any other site unless so identified.
On June 21, 2005, final regulations commonly known as "Circular 230" became effective. Circular 230 was issued by the United States Department of Treasury. It sets forth detailed rules that tax practitioners (including attorneys and accountants) must follow when providing written communications regarding certain Federal tax issues. A "Federal tax issue" is a question concerning the Federal tax treatment of an item of income, gain, loss, deduction or credit, the existence or absence of a taxable transfer of property (such as whether a transfer to another is subject to Federal gift tax) or the value of property for Federal tax purposes.
When it issued Circular 230, the Department of Treasury articulated its objective to "restore, promote and maintain the public's confidence in those individuals and firms" that provide tax advice. The failure by a tax practitioner to comply with the requirements of Circular 230 may result in severe penalties, including public censure, monetary fines and/or suspension or disbarment from practicing before the IRS. One nationally prominent tax practitioner and author makes the following observation regarding Circular 230:
[The Regulations] are any attempt by the Service to balance concerns about overly aggressive advice provided by some practitioners who were involved in the promotion of abusive tax shelters on the one hand, and the potential imposition of burdensome requirements on the great majority of tax practitioners who never issued such opinions. In that light, the final Regulations can be viewed as a compromise, but one that leans more towards enforcement. Once again, the many will pay for the sins of a few.
Circular 230 applies to not only formal legal opinions but also any writing relating to any Federal tax matter, including e-mail communications. In particular, tax practitioners must now comply with a number of detailed requirements when providing a "Covered Opinion," including the following:
(i) the practitioner must make reasonable efforts to identify and ascertain all relevant facts and may not base the opinion on any "unreasonable factual assumption";
(ii) the practitioner must relate the applicable law - including "any potentially applicable judicial doctrine" - to the relevant facts;
(iii) with very limited exceptions, the opinion must consider all "significant" Federal tax issues and reach a conclusion as to the likelihood that the taxpayer will prevail on the merits on each such issue (or if a conclusion cannot be reached, the opinion must so state);
(iv) the practitioner must reach an "overall conclusion" as to the likelihood that the stated Federal tax treatment of the arrangement or transaction is the proper treatment and set forth the reasons for that conclusion; and
(v) if any one of a number of conditions apply to the opinion, the practitioner must "prominently disclose" those conditions.
There are several categories of "Covered Opinions" which are generally not applicable to the tax practice currently maintained by Thorpe Shwer. However, the definition of a Covered Opinion is very broad and generally includes any written communication (including e-mail) that (i) addresses a Federal tax issue, (ii) reaches a conclusion favorable to the taxpayer at any confidence level, and (iii) is intended to be relied upon by the taxpayer to avoid penalties.
Unfortunately, this firm (and many other firms and individual tax practitioners) anticipate that Circular 230 will increase the cost of delivering to clients written materials discussing tax issues. In most day-to-day correspondence - especially e-mail communications - the costs of complying with the requirements imposed by Circular 230 are likely to be prohibitive relative to the benefit of the written tax advice.
Tax practitioners can provide certain types of written communication on tax issues without complying with the extensive requirements of Circular 230 if the written communication includes a statement that the advice given may not be relied upon by the taxpayer to avoid penalties. Consequently, after June 20, 2005, clients of Thorpe Shwer will see certain "reliance disclaimers" in various communications from the firm, including e-mail messages. It is anticipated that most written communications from Thorpe Shwer attorneys that address Federal tax issues will also include the "reliance disclaimer" unless there is an agreement between the firm and the applicable client as to the need for an opinion that satisfies the requirements of Circular 230.
It is our intention to endeavor to continue providing the highest quality legal services to our clients in a cost-effective manner. Please call us if you have any question about how Circular 230 may affect our representation of you in connection with Federal tax matters.