licensed to practice in the state where the client resides, the communication might not qualify for the privilege. Tax advice versus business advice The FATP privilege applies only to tax advice. The advice must be treated as confidential by both the accountant and the client to be covered by the privilege. If the communication is divulged to third parties, then it is not confidential. The privilege does not cover general business consultations or personal financial planning advice. Tax return preparation With respect to communications involved in the preparation of tax returns, there is a split of authority. Much of the relevant case law was rendered prior to the creation of the FATP privilege in 1998, and relates to the attorney–client privilege. Most of the case law indicates that a communication in connection with tax return preparation is not covered. Under the argument accepted by the U.S. Court of Appeals for the Ninth Circuit, communication pertinent merely to preparing a tax return does not involve giving or receiving legal advice (see e.g., United States v. Gurtner). The United States Court of Appeals for the Eighth Circuit, meanwhile, has held that tax returns are not privileged. This holding is based on the rationale that tax returns are intended for disclosure to a third party, i.e., the Internal Revenue Service, so there can be no expectation of confidentiality, which defeats a claim that the return or pertinent communication is privileged. One minority view finds the privilege might apply to a communication about what to claim on a return. Another minority view is that such communications could be considered "legal" advice. On balance, however, the weight of authority is that communication in connection with tax return preparation is probably not protected by the privilege. Notes See also Attorney–client privilege Taxation in the United States Accounting in the United States Privileged communication