One of Your Corporate Clients Comes to You Asking for Advice
One of your corporate clients comes to you asking for advice regarding a proposed merger with XYZ Company.You (a)issue an opinion concerning the FMV of XYZ,(b)prepare pro forma financials for the merged entity to be,(c)draft shareholder resolutions for your client approving the proposed merger,(d)file a shareholder proxy statement with the U.S.Securities and Exchange Commission,and (e)advise your client's board of directors concerning the advantages of a Type A versus a Type B reorganization.Which of these activities,if any,constitutes the unauthorized practice of law?
One of your corporate clients has recently filed for bankruptcy.In the course of the proceedings,you (a)prepare a plan of reorganization that alters the rights of preferred stockholders,(b)notify the company's creditors of an impending bulk transfer of the company's assets,(c)review IRS secured claims against these assets,(d)restructure the company's debt by reducing its principal amount and extending its maturity,and (e)advise the bankruptcy court as to how this restructuring will impact the company's NOLs.Which of these activities,if any,constitutes the unauthorized practice of law?
Which of the following communications between an accountant and client are privileged?
a)During the preparation of her 2008 tax return,Tammy informs her accountant that she contributed $25,000 to a qualified charitable organization.
b)After filing his tax return,a client mentions to his accountant that he forgot to report a $7,000 prize that he won playing bingo.He asks how he should correct the error.
c)A client tells his accountant that he will no longer pay alimony to his ex-wife.
Which of the following communications between an accountant and client are not privileged?
a)An accountant orally communicates to his client that he should set up a foreign subsidiary to shift taxable income to a lower tax jurisdiction.
b)An accountant privately submits to the client a plan for shifting taxable income to a lower tax jurisdiction.
c)During a meeting in which a client is asking for advice relating to criminal fraud,the client tells his accountant that he lied to the IRS.