IRS Tax Return Disclosure Violation Suit Can Proceed, Court Says

A lawsuit brought by a capital assets dealer and his business can proceed against the IRS, because the government didn’t show it was allowed to disclose the owner or company’s confidential tax return information in a separate court proceeding, a federal court said.

The IRS failed to demonstrate why the information it shared—including the company’s employer identification number and that the business director works remotely from his personal residence, which is also where the company is located—didn’t qualify as protected tax return information under Section 6103, the court said.

“Plaintiffs’ complaint states a claim for relief for violation of ...