In a recent turn of events, President Joe Biden’s son, Hunter Biden, has filed a federal lawsuit against the Internal Revenue Service (IRS). This legal action comes on the heels of Hunter Biden facing gun charges after a potential plea deal fell apart. The crux of the lawsuit revolves around allegations of illegal disclosure of his private tax information by two IRS agents, Gary Shapley and Joseph Ziegler, and their attorneys between April and August 2023.
Timeline of Events:
Hunter Biden’s lawsuit claims that Shapley and Ziegler, along with their legal teams, violated his tax return confidentiality by publicly disclosing his private tax information. Shapley’s legal representation has refuted these allegations, arguing that they only disclosed taxpayer information through whistleblower channels authorized by statute. They further assert that the release of Shapley’s confidential testimony by Congress gave him the right to discuss public information.
The Actions That Led to the Lawsuit:
During a confidential hearing conducted by the House Ways and Means Committee on May 26, 2023, Shapley revealed that Hunter Biden’s case, codenamed “Sportsman,” was handled differently from any investigation in his 14-year career with the IRS. He outlined a series of actions that included delaying enforcement actions, limiting investigators’ questioning, and deliberately misleading investigators on charging authority, all happening months before elections.
Confidentiality Concerns:
Shapley was explicitly advised by the committee counsel that the information shared during the hearing was confidential and protected by the Internal Revenue Code’s Section 7213, which prohibits unauthorized disclosures of tax returns and return information. However, on June 22, 2023, the Ways and Means Committee publicly released the transcript of the confidential hearing on its website.
Violation of Confidentiality:
Hunter Biden’s complaint alleges that Shapley violated this confidentiality by engaging with the media on multiple occasions, including an interview with CBS News before the hearing transcript was made available to the public. Section 6103(a) of the Internal Revenue Code generally bars IRS employees from disclosing a taxpayer’s tax return or return information to the public unless exceptions apply.
Understanding Whistleblower Laws:
The complaint refers to Section 6103(h)(4) of the Internal Revenue Code, which authorizes the disclosure of tax returns and return information in administrative or judicial proceedings related to whistleblowers. Additionally, Section 6013(f)(5) highlights that individuals with access to tax return information can disclose it to the House Ways and Means Committee if it pertains to possible misconduct, maladministration, or taxpayer abuse.
Implications and Legal Demands:
The judge presiding over the case will have to determine whether Shapley, Ziegler, and their legal representatives violated tax return confidentiality laws with their public statements regarding the Hunter Biden investigation. Hunter Biden’s lawsuit seeks damages, costs, and attorney’s fees, a declaration of the IRS unlawfully disclosing his tax information, and an order for the IRS to implement a robust data security plan.
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