Ezel / IRS Rulings / 200938027

Chief Counsel advised on pattern evidence and third-party return privacy

Number
200938027
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Disclosure in Judicial or Administrative Tax Administration Proceedings
Topics
Procedure, penalties, and administration
Code sections
§ 6103
Ruling dated
March 30, 2009
Publicly released
September 18, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised the recipient to read Chief Counsel Notice 2006-003 before using pattern evidence. The advice stated that the notice explains the relationships and transactions needed to use that evidence, and that third-party privacy must be considered and protected when third-party return information is used in a proceeding. It also identified Chief Counsel Notice 2006-006 as potentially helpful.

Ruling snapshot

  • Question: What guidance applied to pattern evidence and third-party return information in a proceeding?
  • Outcome: Advice given.
  • Key authorities: IRC § 6103; Chief Counsel Notices 2006-003 and 2006-006.

Full text (IRS public release)

ID: CCA_2009033015395553 Number: 200938027
Release Date: 9/18/2009
Office: ----------------------------
UILC: 6103.08-04

From: ----------------
Sent: Monday, March 30, 2009 3:39:56 PM
To: --------------------
Cc:
Subject: RE: IMT Loss Importation Reports -------------------------------------

Hi ------- --

I suggest reading CC Notice 2006-003 carefully. The second paragraph under Section III of that Notice explains the relationships and transactions needed to be able to use "pattern evidence". Section V reminds everyone that third party privacy must be considered and appropriately protected whenever third party return information is used in a proceeding. You might also find CC Notice 2006-006 (Q&A style) helpful.

If you have any questions, feel free to contact me.

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