United States v. Wealth and Tax Advisory Services, Inc.

We hold today that a 29-page “draft opinion letter” sent by the taxpayers’ ac countants to the taxpayers’ tax lawyers, containing extensive legal authority and analysis of a complicated tax transaction, constitutes a “memorandum.” Therefore, even though the letter was characterized as a “draft,” it was nevertheless subject to disclosure pursuant to the taxpayers’ agreement to provide to the IRS “[a]ll opinions and memoranda that provide a legal analysis” of the transaction in question.

The United States appeals from the district court’s order denying the government’s petition to enforce a…