[The Federalist] The House Ways and Means Committee granted two attorneys representing the Internal Revenue Service whistleblower authority to inspect Hunter Biden’s tax returns and related information. This development promises to accelerate the unraveling of the Justice Department’s Biden family protection racket. Understanding why requires a fuller understanding of IRS privacy law, so here’s your "lawsplainer."
A LOOK AT THE LAW
Section 6103 of the Internal Revenue Code provides that federal tax returns and "return information" "shall be confidential" and makes it illegal for an IRS "officer or employee" to disclose such tax information. In fact, many view Sections 6103’s confidentiality mandate as even precluding a government employee from revealing the existence of an investigation into a taxpayer. However, because in December of 2020, Hunter Biden publicly acknowledged the existence of an investigation into his tax matters after federal prosecutors subpoenaed his business records, the public has long known of the investigation into the president’s son.
Several exceptions to the confidentiality provisions of Section 6103 exist, though. Relevant here is the statutory exception authorizing whistleblowers to disclose confidential information to the House Committee on Ways and Means or the Senate Committee on Finance. That exception guarantees whistleblower protection to government agents who reveal confidential information concerning tax issues to either of those committees.
But because the Section 6103 exception does not also allow a whistleblower the right to disclose the information to his attorney, the whistleblower would be forced to face the committees without the benefit of legal counsel. Further, because Section 6103 defines "return information" broadly to include the nature and sources of income, data collected by the IRS, and "any background file document" or "written determination" prepared by the IRS, the whistleblower also could not legally discuss with his attorney many aspects of an investigation to prepare to testify before the congressional committees.
This backdrop explains the purpose of the letter Mark Lytle, one of the lawyers representing the IRS whistleblower, sent to the chairs and ranking members of several congressional committees. In that letter, Lytle conveyed his client’s offer to share information establishing that politics improperly infected the criminal investigation of a "high-profile, controversial subject" — again, widely believed to be Hunter Biden because of the Biden son’s confirmation in 2020 of an ongoing federal investigation into his tax matters.
The letter stressed that because of tax privacy laws, the IRS whistleblower, "out of an abundance of caution," had "refrained from sharing certain information" with Lytle while seeking his legal advice. Lytle then explained that lacking a full understanding of the situation made it "challenging" for him "to make fully informed judgments about how to best proceed."
Lytle closed his letter by asking the committees to work with him so his client could share the "information with Congress legally and with the fully informed advice of counsel," adding: "With the appropriate legal protections and in the appropriate setting, I would be happy to meet with you and provide a more detailed proffer of the testimony my client could provide to Congress."