United States v. Victor Sherman

This is an appeal from an order of the United States District Court for the Central District of California, dated August 20, 1979, which directed the appellant, attorney Victor Sherman, to comply with an Internal Revenue Service summons. Sherman is the attorney for the target of an IRS investigation of net worth for the purpose of determining income tax liability. The summons seeks disclosure of the amount of the legal fees paid by the client to Sherman in 1977.

Sherman resisted the summons in the district court on the basis that (1) enforcement of the summons would violate the attorney-client privilege and (2) that the summons was issued for an improper purpose and should not be enforced.

On appeal, he renews the former argument and, in addition, contends that the district court erred in denying his request for an evidentiary hearing on the issue of whether it was IRS policy to instigate net worth investigations for individuals charged or convicted in large drug trafficking cases. This information, according to appellant, would have been relevant evidence to show that it was likely that appellant and his client would have discussed tax matters at the very outset of their…