Continental Casualty Company v. Jones et al

Filing 106

ORDER directing that, pursuant to to 26 U.S.C. § 7216(b)(1)(B), tax return information may be produced to the extent it appears in the files otherwiseproducible by the Leitner defendants in response to discovery from the other parties in this ca se and that such documents so produced shall be confidential and covered by the terms of the confidentiality order entered by this court. Also notifying that such production under the terms of this order shall not expose the Leitner defendants to liability under 26 U.S.C. § 7216(a). Signed by Honorable Joseph F Anderson, Jr on 12/23/09. (bshr, )

IN THE UNITED STATES DISTRICT COURT F O R THE DISTRICT OF SOUTH CAROLINA C O L U M B IA DIVISION C o n tin e n ta l Casualty Company, P l a in tif f , v. James R. Jones, II; Carolina Jones aka C a r o l Jones; Elizabeth Leitner; Jones L e itn e r & Co.; Jones and Leitner, CPAs, P .A .; Jones Leitner, Inc.; Jones, Reeves & Co.; Eric E. Youngblood, Trustee of th e D.C. Sheppard Trust; Dana C. S h e p p a rd , individually and as Natural G u a rd ia n for S. S., a Minor; Joseph E. C h a m b e r s ; David S. Johnson; Catherine J o h n s o n ; and W. Shell Suber, Jr., D e f e n d a n ts . ________________________________ ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) C/A No. 3:09-1004-JFA

ORDER

T h is matter came before the court for a hearing on December 22, 2009 on several p e n d in g matters, including discussion of discovery issues among the parties. It appears from the representation of counsel that the Elizabeth I. Leitner and the Leitner defendants are a c c o u n t a n ts who, for compensation, in the past have prepared certain tax returns for its c lie n ts . Some of those returns and tax return materials are contained in the files of the L e itn e r defendants that are subject to production requests served by other parties in this litig a tio n . Pursuant to 26 U.S.C. § 7216(a), there is a criminal penalty attached to the disclosure o f such tax return information by tax preparers, unless the disclosure is made pursuant to an o rd e r of Court. See 26 U.S.C. § 7216(b)(1)(B). Counsel for the Leitner defendants has

expressed concern for the liability that might be incurred from the disclosure of the tax return i n f o rm a tio n without the existence of a court order, even though such information may be re le v a n t to the discovery in this case. Therefore, pursuant to 26 U.S.C. § 7216(b)(1)(B), this Court orders that such tax r e tu r n information may be produced to the extent they appear in the files otherwise p ro d u c ib le by the Leitner defendants in response to discovery from the other parties in this c a se and that such documents so produced shall be confidential and covered by the terms of th e confidentiality order entered by this court. Such production under the terms of this order sh all not expose the Leitner defendants to liability under 26 U.S.C. § 7216(a). IT IS SO ORDERED.

December 23, 2009 C o lu m b ia , South Carolina

J o s e p h F. Anderson, Jr. U n ite d States District Judge