Kovel Letters Are Necessary for Offshore Voluntary Disclosures!
I have received numerous e-mails and calls concerning whether or not CPAs, Accountants and Enrolled Agents should be retaining counsel and using Kovel letters with Offshore Voluntary Disclosures of Undisclosed Foreign Bank Accounts.
Without a doubt the answer has always been "Yes" and the reasons are as follows: Currently the IRS and Department of Justice have been investigating Undisclosed Offshore Bank Accounts and along with these investigations can come various criminal charges, such as tax evasion etc.
To prepare tax returns and FBAR forms for your clients in these types of situations without privilege could be detrimental to you and your client. As a tax preparer and without attorney client privilege you could actually become a witness against your own client. And the last thing you want is to be pulled into an investigation!