Wilson

This case presents the question whether a taxpayer waives the privilege of confidentiality attaching to his copies of income tax returns when he files a lawsuit placing the contents of those returns directly in issue.

In a complaint filed in superior court naming petitioners as defendants, real party in interest Nell M. Enid (hereinafter “plaintiff”) alleges that petitioners, Olin and Wilson (hereinafter “defendants”), are partners doing business as Olin and Wilson, Accountants; that she hired defendants in 1972 to “advise and handle her tax problems;” that defendants negligently and improperly advised her on the tax consequences of a sale of real property; that as a result she was damaged in the sum of $28,518 plus interest from April 15, 1973.

Defendants moved in superior court for an order compelling plaintiff to produce for inspection and copying her federal and state income tax returns for the tax years 1965 through 1973 (Code Civ. Proc., §§ 2031, 2034, subd. (a)), or in the alternative for a protective order suppressing any evidence at trial of the amount of taxes plaintiff paid or should have paid for the 1972 tax year (Code Civ. Proc., § 2034, subd. (b)(2)(ii).)…