Tax News

CCH (cch.taxgroup.com) reports:

  Various partnerships were entitled to discover documents and testimony regarding the IRS's interpretation and application of Code Sec. 752. The documents sought by the partnerships were not protected by the deliberative process privilege and were relevant to the partnerships' defenses to the accuracy-related penalties asserted by the IRS. The government did not properly invoke the deliberative process privilege because it was not asserted by the IRS Commissioner or by an official with delegated authority. Moreover, the government did not particularly state what information sought by the partnerships' request for deposition testimony was privileged or provided precise and certain reasons for maintaining the confidentiality of the requested information. Further, if the government produced the requested documents in another case; the government waived the privilege and was required to produce those documents to the partnerships.

Alpha I, L.P., FedCl, 2008-2 USTC ¶50,534

Other References:

 
Code Sec. 7402

  CCH Reference - 2008FED ¶41,605.2036

  Tax Research Consultant

  CCH Reference - TRC IRS: 9,502.15