Ballas

I

OVERVIEW

George P. and Ann Balias, Samuel H. and Sara C. Booker, Robert J. David, Donald Housman, and Frank and Margaret W. Poor-man (“taxpayers”) appeal the district court’s order denying their petition for disclosure under Fed.R.Crim.P. 6(e) of grand jury investigative materials prepared by the Tax Division of the United States Department of Justice and the Internal Revenue Service during their investigation of the promoters of an abusive tax shelter called AMCOR. The district court concluded that the taxpayers-investors in AMCOR, who are currently petitioners for redetermination of their tax liability in tax court, were not entitled to release of the grand jury materials for use in their tax court case. We affirm.

II

FACTS AND PRIOR PROCEEDINGS

Prior to 1989, and continuing until 1990, the IRS conducted an administrative investigation into possible criminal violations of the Internal Revenue Code by promoters of an abusive tax shelter program known as AM-COR. From April 1990 until April 1993, the Government conducted a grand jury investigation under the supervision of the United States District Court for the Central District of California into the AMCOR abusive tax…