Trucept, Inc. v. IRS, No. 15-0447, 2018 WL 4628366 (D.D.C. Sept. 27, 2018) (Moskowitz, C. J.)

Trucept, Inc. v. IRS, No. 15-0447, 2018 WL 4628366 (D.D.C. Sept. 27, 2018) (Moskowitz, C. J.)

Re:  Request for records concerning series of liens

Disposition:  Granting defendant's motion for summary judgment; denying plaintiff's motion for summary judgment

• Litigation Considerations, Adequacy of Search:  The court holds that "[t]he IRS has conducted an adequate search in response to Plaintiff's FOIA request."  The court finds that "[t]he IRS has submitted 'reasonably detailed, nonconclusory' affidavits that show 'what records were searched, by whom, and through what process.'"
   
• Exemption 3:  The court relates that "[t]he IRS asserts that Plaintiff seeks return information that is protected and cannot be disclosed without third party authorization."  "The Court agrees[]" and explains that "Section 6103 specifically protects a taxpayer's identity as confidential 'return information.'"  "'Return information' also encompasses 'whether the taxpayer's return was, is being, or will be examined or subject to other investigation.'"  The court also finds that "Plaintiff's alter ego argument[, "that because the IRS has determined for tax liability purposes that Plaintiff and other taxpayers are alter egos, and therefore one entity,"] is . . . unavailing."
   
• Exemption 6:  "The Court finds the . . . information[, "'social security numbers of plaintiff's employees, the bank account, credit card, or driver license numbers of any individual taxpayer, the home addresses, telephone numbers, or email addresses of third parties, or taxpayer identification numbers, Federal and state, of plaintiff or any other third party,'" ] was properly withheld under Exemption 6, because it consists of personal information of individuals that falls within the ambit of information typically subject to privacy protection, and the privacy interests of the individuals involved outweigh any public interest that might be served by disclosure."  "The Court also finds that the IRS complied with its duty to reasonably segregate and produce all non-exempt information."
   
• Exemption 7(C):  "[T]he Court finds the referenced information regarding third-parties was properly withheld under Exemption 7(C)."  The court relates that, "the IRS has withheld . . . 'emails and a memorandum of interview concerning plaintiff in which personal identifying information for taxpayers other than plaintiff was withheld.'"  "The Court also finds that the IRS complied with its duty to reasonably segregate and produce all non-exempt information."
   
• Exemption 7(E):  "The Court finds the IRS's evidence sufficient to show that disclosure of the [records concerning "Plaintiff's 'Risk Score,' 'which is a technique used by the [IRS] to prioritize case assignments given the [IRS's] resource constraints"] would disclose techniques and procedures for law enforcement investigations that could reasonably be expected to risk circumvention of the law."  "The Court also finds that the IRS complied with its duty to reasonably segregate and produce all non-exempt information."