Opinion ID: 629223
Heading Depth: 1
Heading Rank: 4

Heading: Confidentiality Provisions

Text: 30 The Governor also argues that enforcement of the administrative subpoena violates the confidentiality provisions of Section 6103 of the Internal Revenue Code, 26 U.S.C. Sec. 6103. Section 6103 generally prohibits state officials from disclosing confidential tax return information except to those specifically authorized. This provision has been made applicable to the CNMI. See 26 U.S.C. Sec. 6103(b)(5)(A). Because the Inspector General is not expressly enumerated in the list of exceptions to Sec. 6103's prohibition against disclosure, the Governor argues that Sec. 6103 prevents him from complying with the Inspector General's subpoena. 31 The district court properly held that the Insular Areas Act, 48 U.S.C. Sec. 1681b, by authorizing an audit of the CNMI, implicitly amended the confidentiality provisions of 26 U.S.C. Sec. 6103 to authorize disclosure of confidential tax information to the Inspector General. Under the Insular Areas Act, the Inspector General is required to report to the Secretary of the Interior ... all failures to collect amounts due the CNMI government. To comply with this duty, the Inspector General must have access to individual tax return information. 32 Although we do not construe Sec. 6103 to bar disclosure of income tax return information to the Inspector General, we expect him to comply with the district court's order to provide internal safeguards ensuring strict measures of confidentiality throughout the course of the audit.