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Keywords

attorneystatuteappealcomplianceattorney-client privilege
attorneyappealattorney-client privilege

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U.S. v. Goldberger & Dubin, P.C., 935 F.2d 501, 67 A.F.T.R.2d 91-1166, 60 USLW 2001, 91-2 USTC P 50,315, 33 Fed. R. Evid. Serv. 14

Facts

Attorneys Ronald P. Fischetti, Mark F. Pomerantz, Paul A. Goldberger, and Lawrence A. Dubin, along with their firms, received cash fees exceeding $10,000 from clients John Doe No. 1 and John Doe No. 2, who were involved in criminal cases. The clients requested that their identities not be disclosed. The IRS issued summonses for the attorneys to provide the names of these clients, which the attorneys initially refused, leading to the government's petition for enforcement in the district court. The court ruled that the attorneys must comply with the IRS summonses.

Attorneys Ronald P. Fischetti, Mark F. Pomerantz, Paul A. Goldberger, and Lawrence A. Dubin, along with their firms, received cash fees exceeding $10,000 from clients John Doe No. 1 and John Doe No. 2, who were involved in criminal cases.

Issue

Did the requirement for attorneys to disclose the identities of clients who paid them cash fees in excess of $10,000 violate the Fourth, Fifth, or Sixth Amendments?

Did the requirement for attorneys to disclose the identities of clients who paid them cash fees in excess of $10,000 violate the Fourth, Fifth, or Sixth Amendments?

Rule

Internal Revenue Code section 6050-I mandates that any person engaged in a trade or business who receives more than $10,000 in cash in a single transaction must file a Form 8300, which includes the cash payor's identifying information.

Internal Revenue Code section 6050-I mandates that any person engaged in a trade or business who receives more than $10,000 in cash in a single transaction must file a Form 8300, which includes the cash payor's identifying information.

Analysis

The court determined that the reporting requirements of section 6050-I are constitutional and do not infringe upon the attorney-client privilege or the right to counsel. It noted that the statute's purpose is to combat tax evasion and that the attorneys' obligations to report client identities do not violate constitutional protections. The court emphasized that the privilege does not extend to information that is required to be disclosed by law, especially when it serves a significant public interest.

The court determined that the reporting requirements of section 6050-I are constitutional and do not infringe upon the attorney-client privilege or the right to counsel.

Conclusion

The Court of Appeals affirmed the district court's ruling, concluding that the attorneys were required to comply with the IRS summonses and disclose the identities of their clients who paid cash fees exceeding $10,000.

The Court of Appeals affirmed the district court's ruling, concluding that the attorneys were required to comply with the IRS summonses and disclose the identities of their clients who paid cash fees exceeding $10,000.

Who won?

The Internal Revenue Service prevailed in the case as the court upheld its authority to require attorneys to disclose client identities under section 6050-I, emphasizing the importance of compliance with tax reporting laws.

The Internal Revenue Service prevailed in the case as the court upheld its authority to require attorneys to disclose client identities under section 6050-I.

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