What Constitutes Unauthorized Practice of Law by Account Ants in Tax Matters.

Abstract The article focuses on the problem of what constitutes the unauthorized practice of law by accountants in tax matters in the U.S. Certified public accountants and attorneys have been attempting to delineate what constitutes the legitimate bailiwick of the accountant since 1935. There has been a failure to produce any satisfactory solution for either of the professions. This professional controversy was intensified by an action brought in the Supreme Court of New York by the New York County Lawyers' Association to punish for contempt and to enjoin the alleged unlawful practice of law by one certified public accountant. The courts have been often confronted with the vexing problem of when an accountant illegally practices law and their decisions present divergent views. Holdings favoring accountants were rendered under the following circumstances. Federal Courts have also passed favorably, from the accountants' view, on the question. It was held that recovery could be had in contract, where tax accountants agreed to prosecute taxpayer's refund claims before the Commissioner of Internal Revenue Service.