CCA 200848057: Taxpayer may receive return information unless disclosure impairs administration

Plain-English summary

Chief Counsel advised that an internal memorandum to an agent appeared to be the taxpayer's return information. Under IRC § 6103(e)(7), a taxpayer generally may receive that information unless disclosure would seriously impair federal tax administration. The recipient of the advice had to make that impairment judgment based on the case. Deliberative-process or predecisional privilege could independently limit release, although the taxpayer representative's existing awareness of the memorandum might mean any privilege had been waived.

Ruling snapshot

• Question: May a taxpayer receive an internal memorandum concerning that taxpayer?
• Outcome: Advice given. Generally yes absent serious impairment, but any applicable privilege and possible waiver must also be considered.
• Key authorities: IRC § 6103(e)(7).

Full text (IRS public release)

ID: CCA_2008072812271671 Number: 200848057
Office: --------------
Release Date: 11/28/2008

UILC: 6103.05-00

From: ----------------------
Sent: Monday, July 28, 2008 12:27:21 PM
To: --------------------
Cc:
Subject: RE: Advice

Sure - Based on what you told me about the facts, it sounded like the memo to the agent would be return information of the taxpayer. Generally, a taxpayer may receive return information in the absence of impairment, under section 6103(e)(7). You are in the best position to determine whether the release of the information in this case would seriously impair federal tax administration. However, it also sounded like there may be privilege issues to consider before releasing the information (for instance, deliberative process or pre-decisional privilege). Finally, you mentioned that the taxpayer's rep. was aware of the memo - so, it may be that any privilege has already been waived.