IRS Investigator Not Liable For Possibly Disclosing Return Info

The IRS didn’t violate the tax code by disclosing confidential return information during its criminal investigation of a taxpayer, the Fifth Circuit said.

John Anthony Castro sued the IRS for its alleged violation of IRC Section 6103(a)(3), saying an IRS agent wrongfully disclosed to two potential witnesses that Castro was under criminal investigation by the agency. Castro and the IRS dispute whether such a disclosure took place, but even accepting that it had, the government is still shielded from liability, the US Court of Appeals for the Fifth Circuit said.

“A safe harbor provision shields the Government from liability ...