SUPPORT OF AMENDMENT OF 26 U.S.C. §56050(I)

WHEREAS, Rule of Professional Conduct 1.6 provides, in pertinent part, that disclosure of clients secrets be made only with client consent or pursuant to court order;

WHEREAS, 26 U.S.C. §56050(I) requires that all persons engaged in trade or business who, during that trade or business receive more than $lO,000.00 in cash in a transaction or related transactions, file IRS Form 8300 disclosing the identity of the person(s) making the-bash payment;

WHEREAS, the Philadelphia Bar Association recognizes the negative impact this reporting requirement has on the attorney~client relationship and the Sixth Amendment requirement of effective assistance of counsel;

WHEREAS, the United States Department of Justice has demonstrated its intent to enforce 6050(I) by seeking penalty assessments against lawyers who file incomplete forms, notwithstanding the attorneys' reliance on RPC 1.6;

WHEREAS, legislation has been introduced in the Congress that exempts lawyers from being forced to provide client-identifying information on Form 8300;

NOW, THEREFORE, BE IT RESOLVED that the Philadelphia Bar Association supports legislation which would exempt lawyers from compulsory provision of client-identifying information pursuant to §6050(I) of the Internal Revenue Code of 1986;

AND BE IT FURTHER RESOLVED that the Chancellor take necessary action to make this position known to appropriate members of the Congress.

PHILADELPHIA BAR ASSOCIATION
BOARD OF GOVERNORS
ADOPTED: September 22, 1994