Opinion
24703-21
03-10-2023
NORTH DONALD LA PROPERTY, LLC, NORTH DONALD LA INVESTORS, LLC, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Albert G. Lauber, Judge
This case involves a charitable contribution deduction claimed by petitioner for a conservation easement. On October 11, 2022, petitioner filed a Motion to Compel Production of Documents. Petitioner represents that respondent has asserted the attorney-client privilege, deliberative-process privilege, and/or the protections of I.R.C. § 6103 to shield from discovery 27 of the 147 documents listed on respondent's amended privilege log, dated June 1, 2022. Petitioner seeks an order directing respondent to produce in full these 27 documents, as well as other documents in respondent's administrative file that form the basis for respondent's allegations of fraud against North Donald LA Property, LLC. Petitioner alternatively requests in camera review by the Court to determine the appropriateness of respondent's assertions of privilege. Petitioner represents that respondent objects to the granting of its Motion.
On January 18, 2023, petitioner filed a First Supplement to its Motion. Petitioner alleges that respondent is claiming privilege over IRS attorney-client communications while at the same time using other such communications as evidence to establish timely supervisory approval of asserted penalties. See I.R.C. § 6751(b)(1).
In consideration of the foregoing, it is
ORDERED that respondent shall file, on or before April 3, 2023, a Response to petitioner's Motion to Compel Production of Documents. Respondent shall address in his Response whether he has waived privilege over certain attorney-client communications by disclosing other attorney-client communications in seeking to establish timely supervisory approval of the fraud penalty.