Opinion ID: 433047
Heading Depth: 2
Heading Rank: 1

Heading: Busk's Theory

Text: 6 Busk's motion to suppress evidence comprising or obtained from return information within the meaning of the Internal Revenue Code presents an issue of first impression for this court. The motion was predicated on the confidentiality and disclosure provisions of sections 4424 and 6103 of that Code. See 26 U.S.C. Sec. 4424 (1976); 26 U.S.C. Sec. 6103 (1976 & Supp. V 1981). Section 6103 deals with confidentiality of returns and return information generally. It provides that, except as expressly authorized by Title 26, no person who has had access to tax returns or return information shall disclose such information in any manner. 26 U.S.C. Sec. 6103(a). Return information is defined broadly to include all data received by the Internal Revenue Service with respect to the possible liability of a taxpayer for penalty, tax, fine, interest, forfeiture or offense. 1 Its disclosure is expressly authorized by sections 6103(c) through (o ). Of the expressly authorized exceptions, the only one here relevant provides: 7 Returns and return information with respect to taxes imposed by chapter 35 (relating to taxes on wagering) shall, notwithstanding any other provision of this section, be open to inspection by or disclosure only to such persons and for such purpose or purposes as are prescribed by section 4424. 8 26 U.S.C. Sec. 6103(o )(2) (1976). 9 The cross reference to section 4424 is to a specific nondisclosure provision in Chapter 35 of Title 26. That Chapter also imposes an occupational tax on wagering. 26 U.S.C. Secs. 4401, 4411 (1976). Section 4424(a) provides: 10 (a) General Rule. 11 Except as otherwise provided in this section, neither the Secretary nor any other officer or employee of the Treasury Department may divulge or make known in any manner whatever to any person-- 12 (1) any original, copy, or abstract of any return, payment, or registration made pursuant to this chapter, 13 (2) any record required for making any such return, payment, or registration, which the Secretary is permitted by the taxpayer to examine or which is produced pursuant to section 7602, or 14 (3) any information come at by the exploitation of any such return, payment, registration, or record. 15 26 U.S.C. Sec. 4424(a). 16 The records to which the suppression motion was directed were records of wagers obtained in two ways. One set of wagering records was retrieved from a storm sewer on October 18, 1978 by Internal Revenue Service Agents who observed Busk discarding them. Another set was obtained on May 11, 1979 when Internal Revenue Agents, executing search warrants, seized evidence from Busk's home, automobile, and person. 2 The United States concedes that records of wagers are records required for making a wagering tax return within the meaning of section 4424(a)(2). Section 4424(b) provides: 17 (b) Permissible disclosure. 18 A disclosure otherwise prohibited by subsection (a) may be made in connection with the administration or civil or criminal enforcement of any tax imposed by this title. However, any document or information so disclosed may not be-- 19 (1) divulged or made known in any manner whatever by any officer or employee of the United States to any person except in connection with the administration or civil or criminal enforcement of this title, nor 20 (2) used, directly or indirectly, in any criminal prosecution for any offense occurring before the date of enactment of this section. 21 26 U.S.C. Sec. 4424(b). This exception to the flat prohibition against disclosure in section 4424(a) is explicit and narrow. Disclosure may not be made except in connection with the civil and criminal enforcement of the Internal Revenue Code. Section 1955 of Title 18 is not an Internal Revenue Code provision. 22 Busk's position with respect to suppression is straightforward. The wagering records came into the possession of the Internal Revenue Service in connection with its administration of Title 26, and comprise records required for the making of a wagering tax return. Therefore, he argues, they fall within the prohibition against disclosure in section 4424(a), and their use in a prosecution under 18 U.S.C. Sec. 1955 is not a permissible disclosure under section 4424(b).