 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Alcon v. Spicer6/6/2005
Alcon is only claiming present and future damages in connection with lost earnings from King Soopers, and she has already disclosed her W-2 forms, Alcon contends that Spicer can show neither compelling need for nor the relevance of her tax returns. Spicer counters that a "complete picture" of Alcon's income as provided by her tax return is necessary in order to defend against her claim for future loss of earnings.
Section 39-21-113(4)(a), C.R.S. (2004), prohibits the department of revenue from divulging individual's tax returns "except in accordance with judicial order or as otherwise provided by law." Because Spicer is seeking disclosure of tax returns from Alcon rather than the department of revenue, this provision does not directly apply. However, we have determined that, through this statute, the general assembly has "expressed a strong public policy of protecting the confidentiality of taxpayers' state income tax returns." Losavio v. Robb, 195 Colo. 533, 539, 579 P.2d 1152, 1156 (1978). Similarly, federal law also evidences a public policy favoring confidentiality of federal tax returns by prohibiting the disclosure of returns except under certain circumstances. 26 U.S.C. ยง 6103; See, e.g., Payne v. Howard, 75 F.R.D. 465, 469 (D.D.C. 1977).
In light of this strong policy in favor of protecting the confidentiality of tax returns, we have held that the party seeking release of a tax return bears the burden of showing a "compelling need" for the return. Losavio 195 Colo. at 540, 579 P.2d at 1157. Absent a compelling need, a subpoena for a tax return should be quashed. Id. Although in Losavio we were reviewing a subpoena from a grand jury to the department of revenue, we did not condition the compelling need requirement on the involvement of a grand jury or the department of revenue. Our decision was motivated by the policy of preserving the confidentiality of income tax returns. Id. ("We hold that in the face of this important public policy, the party seeking the income tax return, in this case the grand jury, bears the burden to show a compelling need for it.") (emphasis added).
Through her responses to interrogatories, Alcon has indicated that her claim for present and future loss of earnings is comprised of lost wages from King Soopers and possible loss of benefits due to forced early retirement. Based on this claim, Spicer can obtain all the information necessary for his defense without viewing Alcon's tax returns. Spicer need not gain a "complete picture" of Alcon's income as captured by her tax returns in order to defend against the type of lost earnings compensation she claims. Consequently, Spicer has not demonstrated a compelling need for Alcon's tax returns, and the trial court abused its discretion in ordering their production in the absence of the required showing.
IV. Conclusion
By filing a personal injury lawsuit, Alcon did not inject her physical condition into the case such that she waived the physician-patient privilege for her entire medical history. Therefore, the trial court erred in ordering Alcon to authorize blanket releases for her general family physician's records and pharmaceutical records. Additionally, Alcon's claim for past and future loss of earnings does not entitle Spicer to discovery of the past ten years of her income tax returns. Because Alcon has already provided Spicer with her income information through her W-2 forms, Spicer cannot demonstrate compelling need for the tax returns, and the trial court erred in ordering their disclosure. Accordingly, we make our rule to show cause absolute. The trial court's order is vacated, and we return this case for proceedings consistent with this opinion.
Page 1 2 3 4 5 6 7 8 9 Colorado Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|