---
kind: "section"
citation: "26 U.S.C. § 7525"
title: "26"
title_heading: "Internal Revenue Code"
number: "7525"
heading: "Confidentiality privileges relating to taxpayer communications"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/7525"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 77 — Miscellaneous Provisions"
---

# §7525. Confidentiality privileges relating to taxpayer communications

- (a) **Uniform application to taxpayer communications with federally authorized practitioners—**
  - (1) **General rule—** With respect to tax advice, the same common law protections of confidentiality which apply to a communication between a [taxpayer](/usc/26/7701.md?p=a-14) and an attorney shall also apply to a communication between a [taxpayer](/usc/26/7701.md?p=a-14) and any federally authorized tax practitioner to the extent the communication would be considered a privileged communication if it were between a [taxpayer](/usc/26/7701.md?p=a-14) and an attorney.
  - (2) **Limitations—** [Paragraph (1)](#a-1) may only be asserted in—
    - (A) any noncriminal tax matter before the Internal Revenue Service; and
    - (B) any noncriminal tax proceeding in Federal court brought by or against the [United States](/usc/26/7701.md?p=a-9).
  - (3) **Definitions—** For purposes of this subsection—
    - (A) **Federally authorized tax practitioner—** The term “federally authorized tax practitioner” means any individual who is authorized under Federal law to practice before the Internal Revenue Service if such practice is subject to Federal regulation under [section 330 of title 31](/usc/31/330.md), United States Code.
    - (B) **Tax advice—** The term “tax advice” means advice given by an individual with respect to a matter which is within the scope of the individual’s authority to practice described in [subparagraph (A)](#a-3-A).
- (b) **Section not to apply to communications regarding tax shelters—** The privilege under [subsection (a)](#a) shall not apply to any written communication which is—
  - (1) between a federally authorized tax practitioner and—
    - (A) any [person](/usc/26/7701.md?p=a-1),
    - (B) any director, officer, [employee](/usc/26/7701.md?p=a-20), agent, or representative of the [person](/usc/26/7701.md?p=a-1), or
    - (C) any other [person](/usc/26/7701.md?p=a-1) holding a capital or profits interest in the [person](/usc/26/7701.md?p=a-1), and
  - (2) in connection with the promotion of the direct or indirect participation of the [person](/usc/26/7701.md?p=a-1) in any tax shelter (as defined in [section 6662(d)(2)(C)(ii)](/usc/26/6662.md?p=d-2-C-ii)).

## Source credit

(Added Pub. L. 105–206, title III, § 3411(a), July 22, 1998, 112 Stat. 750; amended Pub. L. 108–357, title VIII, § 813(a), Oct. 22, 2004, 118 Stat. 1581.)

## Notes

### Editorial Notes

### Amendments

2004—Subsec. (b). Pub. L. 108–357 amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “The privilege under subsection (a) shall not apply to any written communication between a federally authorized tax practitioner and a director, shareholder, officer, or employee, agent, or representative of a corporation in connection with the promotion of the direct or indirect participation of such corporation in any tax shelter (as defined in section 6662(d)(2)(C)(iii)).”

### Statutory Notes and Related Subsidiaries

### Effective Date of 2004 Amendment

Pub. L. 108–357, title VIII, § 813(b), Oct. 22, 2004, 118 Stat. 1581, provided that: “The amendment made by this section [amending this section] shall apply to communications made on or after the date of the enactment of this Act [Oct. 22, 2004].”

### Effective Date

Pub. L. 105–206, title III, § 3411(c), July 22, 1998, 112 Stat. 751, provided that: “The amendments made by this section [enacting this section] shall apply to communications made on or after the date of the enactment of this Act [July 22, 1998].”