US Supreme Court Voices Concern Over Tax Court Secrecy

by Mike Godfrey, Tax-News.com, Washington

09 December 2004

The US Supreme Court has expressed alarm at the level of secrecy faced by taxpayers who take their cases to the US Tax Court, according to an Associated Press report.

The news emerged as justices consider whether the Tax Court withholds important pieces of information from taxpayers, making it difficult for them to challenge decisions in the event they lose a case.

Although the Tax Court makes its official opinions public, individuals are not permitted to view the recommendations and detailed reports of specially appointed judges who preside over cases involving more than $50,000.

According to Stephen Shapiro, the lawyer challenging the current system, these reports were made public for forty years before the Tax Court changed the rules in 1983.

Questioning the Court's current secretive practices, Justice Sandra Day O'Connor told deputy solicitor general Thomas Hungar: "It's such a strange procedure. ... Wouldn't you like to see (a report) if it went against you?"

However, Hungar countered that the Tax Court believes it is more efficient for it to withhold the reports.

The Supreme Court may rule that the law requires reports to be made public, or decide that taxpayers must be allowed access to reports as part of their Fifth Amendment rights.

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