Opinion ID: 8704914
Heading Depth: 3
Heading Rank: 3

Heading: FOIA Exemptions 3 and 7(D)

Text: Withholding 11 pages (pages 267 to 277), in full, under Exemptions 3 and 7(D), the IRS argues that these materials are exempt “because their disclosure could reasonably be expected to disclose the identity of a confidential source or sources” as well as “seriously impair federal tax administration.” King Decl. ¶ 17. Plaintiff contends that the IRS’s declarations are too generalized to provide the plaintiff, or this court, with adequate information to evaluate the IRS’s decision to withhold the documents, and that summary judgment is inappropriate until in camera review of the withheld documents is performed. Pl.’s Mem. at 12-13,16-17. As previously explained, Exemption 3 of FOIA incorporates nondisclosure protections established in other federal statutes, see generally 5 U.S.C. § 552(b)(3), and it is well-established that 26 U.S.C. § 6103 provides particular criteria for withholding information. Accordingly, § 6103(e)(7) states that “[rjeturn information with respect to any taxpayer may be open to inspection by or disclosure to any [authorized] person” if it is determined that “such disclosure would not seriously impair [federal tax administration.” Although phrased as a permissive statute, rather than a prohibitive one, the IRS argues that § 6103(e)(7) can be interpreted to ban the disclosure of return information that would seriously impair federal tax administration. Def.’s Mem. at 19. Exemption 7(D) protects from disclosure “records or information compiled for law enforcement purposes” that “could reasonably be expected to disclose the identity of a confidential source ... [who] furnished information on a confidential basis.” 5 U.S.C. § 552(b)(7)(D). “A source is confidential within the meaning of [Exemption 7(D) if the source provided information under an express assurance of confidentiality or in circumstances from which such an assurance could be reasonably inferred.” Williams v. FBI, 69 F.3d 1155, 1159 (D.C.Cir.1995) (internal quotation marks and citation omitted). The court may consider a number of factors in determining whether a source’s communication should be treated as confidential, “including notations on the face of a withheld document, the personal knowledge of an official familiar with the source, a statement by the source, or contemporaneous documents discussing practices or policies for dealing with the source or similarly situated sources.” Campbell v. U.S. Dep’t of Justice, 164 F.3d 20, 34 (D.C.Cir.1998). Of all of FOIA’s law enforcement exemptions, it is well known that Exemption 7(D) affords the most comprehensive protection. See Billington v. U.S. Dep’t of Justice, 301 F.Supp.2d 15, 22 (D.D.C.2004); Voinche v. FBI, 940 F.Supp. 323, 331 (D.D.C.1996). The IRS submitted in camera declarations to support its withholding of this group of 11 pages due to “the nature of the documents withheld” as well as the “nature of [its] assertions” under FOIA Exemptions 3 and 7(D). See Def.’s Response at 12. The in camera declarations provide additional details explaining why the IRS has not described any investigation or informant information in any greater detail in its public submissions. See Def.’s In Camera Sub. Although the Court is mindful that in camera declarations are to be avoided unless essential, see, e.g., Phillippi v. CIA 546 F.2d 1009, 1013 (D.C.Cir.1976), where, as here, “an agency indicates that no additional information concerning an investigation may be publicly disclosed without revealing precisely the information that the agency seeks to withhold, the receipt of in camera declarations is appropriate.” Barnard v. Dep’t of Homeland Sec., 598 F.Supp.2d 1, 16 (D.D.C.2009); see also Arieff v. U.S. Dep’t of the Navy, 712 F.2d 1462, 1469 (D.C.Cir.1983) (stating that in camera affidavits are, “when necessary, part of a trial judge’s procedural arsenal”) (internal quotation marks omitted). After reviewing the IRS’s in camera declarations, the Court finds that the agency has properly invoked Exemptions 3 and 7(D) with respect to pages 267 to 277. First, the Court is satisfied that, on the basis of detailed in camera declarations, disclosure of these materials would impair the collection, assessment, or enforcement of the tax laws under Exemption 3. Indeed, an individual who has delegated authority to make such a determination under 26 U.S.C. § 6103(e)(7) attests via in camera declaration that releasing the particular pages at issue would seriously impair federal tax administration. See Def.’s In Camera Sub. Second, the in camera declarations contain ample descriptions of the 11 pages withheld by the IRS, and explain why each of the pages cannot be further considered on the public record without revealing material that the IRS seeks to withhold.from public disclosure. Id. Sufficient for Exemption 7(D) purposes, the detailed in camera submissions from the IRS confirm that the withheld documents are part of an investigatory record compiled for law enforcement purposes, that sources supplied the information under circumstances which indicate assurances of confidentiality, and that disclosure of any portion of the document would reveal the identity of confidential sources. Id. In other words, the court is satisfied that the sources provided information under at least an implied promise of confidentiality, and that disclosure of this information via the release of these 11 pages, which contains identifying information throughout, could reasonably be expected to disclose their identities. See Billington, 301 F.Supp.2d at 22 (based on in camera declarations, concluding that the government properly withheld a six-page memorandum that implicated a government informant under Exemption 7(D)). Accordingly, I find that the information contained within pages 267 to 277 is exempt from disclosure under Exemptions 3 and 7(D).