After years of seeing requests for sealing records or proceeding anonymously routinely denied, even in whistleblower cases until DC Cir stopped it, I wanted to use the old ice hockey players’ watchword: “If you step on the ice you gonna get hit.” Non-whistleblower petitioners should read and heed. Section 7461 sets a high bar for privacy.

Now nonparty S.Crow Collateral Corp. (SCCC) wants to seal an IRS expert’s report in Richard B. Stillahn & Lisa R. Lang Stillahn, Docket No. 13492-20, filed 12/20/24, to lock out some SCCC’s tax return info IRS got via the audit process. IRS claims transactional relationship between SCCC and an LLC on the one side, and Stillahn on the other. I’ve blogged these situations a few times before now, and generally IRS wins.

Trade secrets, privileged information, and Section 6103 info usually clear the bar, except where, as here, it relates directly to the two lead issues in the case.

Ex-Ch J L. Paige (“Iron Fist”) Marvel spells out the ground rules.

“An item of evidence received by this Court is presumptively a public record open to the inspection of the public. While we may seal a record for good cause, the burden of demonstrating good cause—including whether information is confidential pursuant to section 6103—falls on the party or other affected person moving us to seal the record. SCCC thus bears the burden of demonstrating good cause, and respondent does not bear a burden in relation to SCCC’s Motion to Seal.” Order, at p. 3.

And that a proceeding for unauthorized disclosure per Section 7431 is ongoing in USDCDID doesn’t matter. The sealing or otherwise of the expert’s report doesn’t only affect the parties (and participants, willing or unwilling), but the public at large.

The real capper is this: “SCCC, however, has not specifically identified each item of disclosed return information to which it objects and has not explained with particularity how section 6103(h)(4)(C) should apply to each such item of information.” Order, at p. 3.

So SCC’s trusty attorney’s request to brief the matter really doesn’t answer the question why this stuff should be secret.

So to all who ask that I not comment on their cases, I can only paraphrase ex-Ch J Iron Fist: “Even if you don’t step on the ice, you gonna get hit.”