On February 2, 2022, the Second Department issued a decision in National Refund & Util. Servs., Inc. v. West 34th Apts. Corp., 2022 NY Slip Op. 00676, holding that a corporation providing tax auditing services is not engaged in the unauthorized practice of law if it is owned by attorneys, explaining:
The defendants contend that the contracts are void as a matter of law because the plaintiff was engaged in the unauthorized practice of law. The defendants cite no case law that supports their proposition that a corporation providing tax auditing services, such as the plaintiff, is engaged in the unauthorized practice of law in providing such services if said corporation is owned by attorneys. The Appellate Division, First Department has found that since agents are permitted by law to appear before the tax commission to attempt to reduce assessments, such services are not illegal provided the activities are confined to that limited sphere. However, where the representation entails the performance of legal services, only a duly licensed lawyer should be permitted to act for the owner. The legality of the transaction, therefore, depends upon the nature of the services rendered, or contemplated to be performed, under the agreement of hire. In the instant case, the written contracts contain no promises by the plaintiff to pursue judicial relief on behalf of a client, which would be a service that impinges on the practice of law.
The defendants’ contentions that the plaintiff corporation violated Judiciary Law § 495 and that the owners of the plaintiff corporation, who are attorneys, violated rules 5.7(a)(3) and (4) of the Rules of Professional Conduct are without merit.
(Internal citations omitted).