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Ernest P. Lampert Delphine Lampert Robert J. Burns John P. Thorne v. United States of America, Manual Peinado v. United States of America, Lawrence J. Figur v. United States

Citations: 854 F.2d 335; 62 A.F.T.R.2d (RIA) 5403; 1988 U.S. App. LEXIS 11103Docket: 87-2022

Court: Court of Appeals for the Ninth Circuit; August 12, 1988; Federal Appellate Court

Narrative Opinion Summary

In the consolidated appeals of Lampert, Peinado, and Figur against the United States, the Ninth Circuit Court examined whether government-issued press releases summarizing public judicial proceedings constituted unauthorized disclosures of 'tax return information' under 26 U.S.C. Sec. 6103. The plaintiffs argued that these press releases violated confidentiality provisions, while the government maintained that the disclosures were permissible, as they were based on information from public court records. The court upheld the district courts' rulings in favor of the government, determining that once tax information is disclosed in judicial proceedings, it loses its confidentiality, thus allowing for subsequent public releases without breaching Sec. 6103. Additionally, in the Lampert case, a recognized violation was mitigated by the government's good faith defense, precluding liability. The court emphasized the distinction between protecting confidential tax return information and information that has entered the public domain through court proceedings. Consequently, the court affirmed that the press releases did not violate the statute, aligning with the legislative intent to prevent unauthorized disclosures of confidential information, not those already public.

Legal Issues Addressed

Confidentiality of Tax Return Information under 26 U.S.C. Sec. 6103

Application: The court determined that government-issued press releases summarizing court proceedings do not violate Sec. 6103 since they disclose information already in the public domain.

Reasoning: The district courts found in favor of the government, ruling that disseminating information already in the public domain does not constitute a violation of Sec. 6103.

Good Faith Defense in Unauthorized Disclosures

Application: In the Lampert case, despite acknowledging a violation, the court found that the government acted in good faith, thus precluding liability.

Reasoning: In the Lampert case, although a violation was acknowledged, the court determined the government acted in good faith, thus precluding liability.

Judicial Proceedings and Public Disclosures

Application: The court found that press releases summarizing court proceedings do not breach Sec. 6103 as they merely restate information disclosed during judicial proceedings.

Reasoning: The courts confirmed that the press releases in question merely restated information disclosed during judicial proceedings, and the findings regarding this were not clearly erroneous.

Public Domain Exception to Confidentiality

Application: The court held that once tax information is disclosed in judicial proceedings, it loses its confidentiality, allowing for subsequent disclosures without violating Sec. 6103.

Reasoning: Several district courts have ruled that once tax return information is disclosed in court, it loses its confidentiality, and taxpayers forfeit privacy rights regarding that information, allowing for subsequent disclosures without violating section 6103.