Major cases in the news from tax shelter promotions to corporate accounting abuses have once again put the ethical obligations of lawyers, and specifically tax lawyers, onto center stage (or at least in the wings). Congress passed increased standards for return preparers and the Treasury has followed with increased preparer standards in Circular 230.
It is within this framework that I read Professor Michael Hatfield’s article, which examines the ethical debate and discussions by some of the leading scholars and practitioners during the 40s, 50s, and 60s. These tax lawyers were at the forefront of discussions regarding the modern income tax. Professor Hatfield’s historical examination provides us with insight into what they were thinking, and provides us with food for thought as we examine modern ethical problems. Professor Hatfield’s point is just that, to provide us with food for thought. He does not attempt to draw conclusions from this debate regarding what we should do now. Instead, he carefully and thoroughly outlines the debate at the time and leaves us with opportunity to draw our own lessons from the analysis. What is clear from the article is that the leading tax lawyers of the time were as conflicted as we are today on many issues, especially the question whether tax lawyers had a special “duty to the system.” Interestingly, however, they were almost universal in their agreement on two major points: (1) that the payment of taxes was a civic duty, one which had a strong patriotic element, and (2) tax lawyers had a duty to be proponents, reformers, and educators about the tax system. Continue reading "Tax Ethics: Advice from the Past"
