Multistate Professional Responsibility Examination (MPRE)Different Roles of a LawyerEasy
A lawyer is approached by a religious organization seeking advice on compliance with federal tax laws regarding non-profit status. The organization's leader explicitly states a desire to engage in political lobbying activities that might jeopardize their tax-exempt status. The lawyer's primary duty in this scenario is to:
- ASuggest that the organization reclassify itself as a political action committee to avoid tax issues.
- BAdvise the organization on how to engage in political lobbying without disclosing it to the IRS.
- CExplain the legal limitations on lobbying for tax-exempt organizations and the potential consequences of non-compliance.
- DDecline representation because the organization's goals conflict with tax law.
Show answer & explanationAnswer & explanation
Correct answer: C. Explain the legal limitations on lobbying for tax-exempt organizations and the potential consequences of non-compliance.
As an advisor, a lawyer must provide candid advice, explaining the legal implications and potential consequences of a client's proposed actions, even if that advice is unpalatable to the client. This includes outlining the risks associated with engaging in activities that could jeopardize their tax-exempt status.
Why the other options are wrong
- A. While reclassification might be an option, the primary duty is to first advise on the current structure's limitations before suggesting alternatives that may or may not align with their original goals.
- B. This would involve counseling the client to engage in fraudulent or illegal activity, which is prohibited.
- D. Declining representation is not necessary unless the client insists on illegal conduct; the lawyer's duty is to advise candidly first.
Lawyer as Advisor: Duty of Candor
A lawyer, when acting as an advisor, has a duty to provide honest, candid, and objective advice, explaining the legal implications of a client's proposed course of action.
- Advice must be truthful, even if unpalatable.
- Must explain potential consequences and risks.
- Includes legal, moral, economic, social, and political factors.
Memory trick: Advisors Always Offer Objective Outcomes.