4 alr fe3d 2d 337 request for expedited processing under foia

**106 ALR, Fed !4, "#en Are $o%ern&ent Records '(i&ilar Files) *xe&pt fro& +isclosure ,nder Freedo& of -nfor&ation Act .ro%ision /0 , ( 1 A 2 002/34/644 *xe&pting, 1ertain .ersonnel, 5edical, and '(i&ilar) Files **112 ALR, Fed 061, *x#austion of Ad&inistrati%e Re&edies as .rerequisite to 6udicial Action to 1o&pel +isclosure ,nder Freedo& of -nfor&ation Act /F7-A4 /0 , ( 1 A 2 0024 **13! ALR, Fed 220, "#at 1onstitutes '8rade (ecrets and 1o&&ercial or Financial -nfor&ation 79tained fro& .erson and .ri%ileged or 1onfidential,) *xe&pt fro& +isclosure ,nder Freedo& of -nfor&ation Act /0 , ( 1 A 2 002/34/444 *103 ALR, Fed 071, "#at Are 'Records) of Agenc: "#ic# 5ust 9e 5ade A%aila9le ,nder Freedo& of -nfor&ation Act /0 , ( 1 A 2 002/A4/344 **160 ALR, Fed 0!1, "#at 1onstitutes 'Agenc:) for .urposes of Freedo& of -nfor&ation Act /0 , ( 1 A 2 0024 **16! ALR, Fed 4!0, "#at 5atters Are *xe&pt fro& +isclosure ,nder Freedo& of -nfor&ation Act /0 , ( 1 A 2 002/34/144 as '(pecificall: Aut#ori;ed ,nder 1riteria *sta9lis#ed 9: an *xecuti%e 7rder to 9e <ept (ecret in t#e -nterest 7f **1=4 ALR, Fed 430, 1onstruction and Application of F7-A *xe&ption 7/F4, 0 , ( 1 A 2 002/34/74/F4, "#ic# .er&its "it##olding of -nfor&ation 1o&piled for La> *nforce&ent .urposes -f +isclosure 1ould Reasona9l: 9e *xpected to *ndanger Life **1=! ALR, Fed 1, "#en Are $o%ern&ent Records Reasona9l: '*xpected to -nterfere "it# *nforce&ent .roceedings) (o as to 9e *xe&pt fro& +isclosure ,nder Freedo& of -nfor&ation Act .ro%ision /0 , ( 1 A 2 002/34/74/A44 *xe&pting An: **107 ALR, Fed ===, Recoup&ent 9: .ro (e Litigant of Attorne:?s Fees ,nder *qual Access to 6ustice Act /2= , ( 1 A 2 24124 **104 ALR, Fed 734, "#en Are $o%ern&ent Records '5edical Files) *xe&pt fro& +isclosure ,nder Freedo& of -nfor&ation Act .ro%ision /0 , ( 1 A 2 002/34/644 *xe&pting 1ertain .ersonnel, '5edical,) and (i&ilar Files **104 ALR, Fed 707, "#en Are $o%ern&ent Records '.ersonnel Files) *xe&pt fro& +isclosure ,nder Freedo& of -nfor&ation Act .ro%ision /0 , ( 1 A 2 002/34/644 *xe&pting 1ertain '.ersonnel,) 5edical, and (i&ilar **=2 ALR, Fed 6!=, *x#austion of Ad&inistrati%e Re&edies as .rerequisite to 1i%il Action ,nder 2 3/$4 of .ri%ac: Act /0 , ( 1 A 2 002a/$44 **07 ALR, Fed !03, ,se of Freedo& of -nfor&ation Act /0 , ( 1 A 2 0024 as (u9stitute For, or as 5eans 7f, (upple&enting +isco%er: .rocedures A%aila9le to Litigants in Federal 1i%il, 1ri&inal, or Ad&inistrati%e **00 ALR, Fed 0=3, "#at Are '*nforce&ent .roceedings) "it#in Freedo& of -nfor&ation Act *xe&ption fro& +isclosure of -n%estigator: Records t#at "ould -nterfere "it# *nforce&ent .roceedings **00 ALR, Fed !03, "#at 5aterials Are *xe&pt fro& +isclosure ,nder .ri%ac: Act?s *xe&ption of '-n%estigator: 5aterial) 1ontained in 0 , ( 1 A 2 002a/<4/04

**00 ALR, Fed 002, "#en is Federal Agenc: 6ustified, ,nder Freedo& of -nfor&ation Act, in Refusing to Furnis# +ocu&ents "it#out 1#arge or at Reduced 1#arge for (earc# and +uplication, .ursuant to 0 , ( 1 A **0 ALR 6t# 327, "#at 1onstitutes 1o&&ercial or Financial -nfor&ation, *xclusi%e of 8rade (ecrets, *xe&pt fro& +isclosure ,nder (tate Freedo& of -nfor&ation Acts@@$eneral Rules of 1onstruction **= ALR 6t# 117, "#at 1onstitutes 1o&&ercial or Financial -nfor&ation, *xclusi%e of 8rade (ecrets, *xe&pt fro& +isclosure ,nder (tate Freedo& of -nfor&ation Acts@@(pecific Applications **26 ALR 4t# 666, "#at 1onstitutes .ersonal 5atters *xe&pt fro& +isclosure 9: -n%asion of .ri%ac: *xe&ption ,nder (tate Freedo& of -nfor&ation Act **27 ALR 4t# 6=0, "#at Are 'Records) of Agenc: "#ic# 5ust 9e 5ade A%aila9le ,nder (tate Freedo& of -nfor&ation Act **27 ALR 4t# 742, "#at 1onstitutes an Agenc: (u9Aect to Application of (tate Freedo& of -nfor&ation Act **40 ALR 4t# 333, "#at 1onstitutes Legiti&ate Researc# 6ustif:ing -nspection of (tate or Local .u9lic Records Bot 7pen to -nspection 9: $eneral .u9lic **26 ALR 4t# 701, .atient?s Rig#t to +isclosure of Cis or Cer 7>n 5edical Records ,nder (tate Freedo& of -nfor&ation Act **=6 ALR 3rd 071, Rig#t of +efense in 1ri&inal .rosecution to +isclosure of .rosecution -nfor&ation Regarding .rospecti%e 6urors **16! ALR 603, *nforcea9ilit: 9: 5anda&us of Rig#t to -nspect .u9lic Records **101 ALR 104!, 1onstitutionalit:, 1onstruction, and Application of (tatutor: .ro%isions Regarding .u9licit: or 1onfidential and .ri%ileged 1#aracter of -nco&e 8ax -nfor&ation or Returns

*xe&ption Application D A pu9lic c#arit: &ust &aEe a%aila9le for pu9lic inspection its exe&ption application, For& 1023, Application for Recognition of *xe&ption ,nder (ection 001/c4/34 of t#e -nternal Re%enue 1ode, along >it# eac# of t#e follo>ing docu&entsF all docu&ents su9&itted >it# For& 1023G all docu&ents t#e -R( requires t#e organi;ation to su9&it in support of its applicationG and, t#e exe&ption ruling letter issued 9: t#e -R( Annual -nfor&ation Return D A pu9lic c#arit: &ust &aEe a%aila9le for pu9lic inspection its annual infor&ation return /For& !!0 series4 >it# sc#edules, attac#&ents, and supporting docu&ents filed >it# t#e -R( Co>e%er, a pu9lic c#arit: t#at files a For& !!0 or For& !!0@*H does not #a%e to disclose t#e na&es and addresses of contri9utors listed on (c#edule 3 All ot#er infor&ation, including t#e a&ount of contri9utions, t#e description of noncas# contri9utions, and an: ot#er infor&ation pro%ided >ill 9e open to pu9lic inspection unless it clearl: identifies t#e contri9utor

BoteF -f an organi;ation files a cop: of For& !!0 or For& !!0@*H, and attac#&ents, >it# an: state, it s#ould not include its (c#edule 3 in t#e attac#&ents for t#e state, unless a sc#edule of contri9utors is specificall: required 9: t#e state (tates t#at do not require t#e infor&ation &ig#t inad%ertentl: &aEe t#e sc#edule a%aila9le for pu9lic inspection along >it# t#e rest of t#e For& !!0 or For& !!0@*H 1ertain infor&ation &a: 9e >it##eld fro& pu9lic inspection A return &ust 9e &ade a%aila9le for a period of t#ree :ears fro& t#e date t#e return is required to 9e filed or is actuall: filed, >#ic#e%er is later For& !!0@8D A pu9lic c#arit: &ust &aEe For& !!0@8 a%aila9le for t#e t#ree :ears 9eginning on t#e last da: /including extensions4 for filing t#e return (c#edules, attac#&ents and supporting docu&ents filed >it# For& !!0@8 t#at do not relate to unrelated 9usiness inco&e tax are not required to 9e &ade a%aila9le Read Botice 2007@40 and Botice 200=@4! at >>> irs go% for interi& guidance regarding #o> t#e returns are to 9e &ade pu9lic (ee Announce&ent 200=@21 for procedures t#e pu9lic &a: use to request a 001/c4/34 organi;ation?s For& !!0@8 fro& t#e -R( .u9lic -nspection and +isclosure .rocedures D A pu9lic c#arit: &a: place reasona9le restrictions on t#e ti&e, place, and &anner of in@ person inspection and cop:ing, and &a: c#arge a reasona9le fee for pro%iding copies **-t can c#arge no &ore for t#e copies t#an t#e per page rate t#e -R( c#arges for pro%iding copies A tax@exe&pt organi;ation does not #a%e to co&pl: >it# indi%idual requests for copies if it &aEes t#e docu&ents >idel: a%aila9le 8#is can 9e done 9: posting t#e docu&ents on a readil: accessi9le "e9 site For details on disclosure rules and procedures for 001/c4/34 organi;ations, see t#e Life 1:cle of a .u9lic 1#arit: and t#e instructions to For&s !!0, !!0@ 8 and 1023 at >>> irs go%Ieo **All pu9licl:@a%aila9le infor&ation &a: 9e o9tained fro& a fee 9: using For& 4006@A, Request for .u9lic -nspection *xe&pt or .olitical 7rgani;ation -R( For& An organi;ation co&plete cop: of its o>n application 9: filing For& 4006, 1op: of 8ax Return t#e -R( for or 1op: of &a: o9tain a Request for

.*BAL8-*( .enalties appl: to responsi9le persons of a tax@exe&pt organi;ation >#o fail to pro%ide t#e docu&ents as required A penalt: of J20 per da: &a: appl: for as long as t#e failure continues A J10,000 &axi&u& penalt: applies to a failure to pro%ide an infor&ation returnG no &axi&u& penalt: applies to application requests 30
#ttpFII>>> irs go%I1#arities@K@Bon@.rofitsI(u9stantiating@1#arita9le@1ontri9utions

Substantiating Charitable Contributions

5an: c#arita9le organi;ations descri9ed in section 001/c4/34, ot#er t#an testing for pu9lic safet: organi;ations, are eligi9le to recei%e tax@deducti9le contri9utions in accordance >it# section 170 5ost eligi9le organi;ations are listed in *xe&pt 7rgani;ations (elect 1#ecE /.u9 7= data9ase4 A c#arita9le organi;ation &ust pro%ide a >ritten disclosure state&ent to donors of a quid pro quo contri9ution in excess of J70 A quid pro quo contribution is a pa:&ent &ade to a c#arit: 9: a donor partl: as a contri9ution and partl: for goods or ser%ices pro%ided to t#e donor 9: t#e c#arit: For exa&ple, if a donor gi%es a c#arit: J100 and recei%es a concert ticEet %alued at J40, t#e donor #as &ade a quid pro quo contri9ution -n t#is exa&ple, t#e c#arita9le contri9ution portion of t#e pa:&ent is J60 *%en t#oug# t#e part of t#e pa:&ent a%aila9le for deduction does not exceed J70, a disclosure state&ent &ust 9e filed 9ecause t#e donor?s pa:&ent /quid pro quo contri9ution4 exceeds J70 8#e required >ritten disclosure state&ent &ustF 1 -nfor& t#e donor t#at t#e a&ount of t#e contri9ution t#at is deducti9le for federal inco&e tax purposes is li&ited to t#e excess of an: &one: /and t#e %alue of an: propert: ot#er t#an &one:4 contri9uted 9: t#e donor o%er t#e %alue of goods or ser%ices pro%ided 9: t#e c#arit:, and .ro%ide t#e donor >it# a good fait# esti&ate of t#e %alue of t#e goods or ser%ices t#at t#e donor recei%ed

8#e c#arit: &ust furnis# t#e state&ent in connection >it# eit#er t#e solicitation or t#e receipt of t#e quid pro quo contri9ution -f t#e disclosure state&ent is furnis#ed in connection >it# a particular solicitation, it is not necessar: for t#e organi;ation to pro%ide anot#er state&ent >#en t#e associated contri9ution is actuall: recei%ed Bo disclosure state&ent is required >#enF 1 2 3 8#e goods or ser%ices gi%en to a donor &eet t#e standards for insubstantial value set out in Re%enue .rocedure !0@12, 1!!0@1 1 3 471, and Re%enue .rocedure !2@4!, 1!!2@1 1 3 !=7 /as updated4G 8#ere is no donati%e ele&ent in%ol%ed in a particular transaction >it# a c#arit: /for exa&ple, t#ere is generall: no donati%e ele&ent in%ol%ed in a %isitor?s purc#ase fro& a &useu& gift s#op4G or 8#ere is onl: an intangi9le religious 9enefit pro%ided to t#e donor 8#e intangi9le religious 9enefit &ust 9e pro%ided to t#e donor 9: an organi;ation organi;ed exclusi%el: for religious purposes, and &ust 9e of a t:pe t#at generall: is not sold in a co&&ercial transaction outside t#e donati%e context

A penalt: is i&posed on a c#arit: t#at does not &aEe t#e required disclosure in connection >it# a quid pro quo contri9ution of &ore t#an J70 8#e penalt: is J10 per contri9ution, not to exceed J0,000 per fund@raising e%ent or &ailing 8#e c#arit: can a%oid t#e penalt: if it can s#o> t#at t#e failure >as due to reasona9le cause ,nder a ne> recordEeeping rule effecti%e for all cas#, c#ecE, electronic funds transfers, credit card c#arges, or ot#er &onetar: contri9utions of an: a&ount &ade in taxa9le :ears 9eginning after August 17, 2006, t#e donor &ust o9tain and Eeep a 9anE record or a >ritten co&&unication fro& t#e donee as a record of t#e contri9ution "ritten records prepared 9: t#e donor /suc# as c#ecE registers or personal notations4 are no longer sufficient to support c#arita9le contri9utions **Bank records for t#is recordEeeping require&ent include 9anE or credit union state&ents, canceled c#ecEs, or credit card state&ents 8#e: &ust s#o> t#e date paid or posted, t#e na&e of t#e

c#arit:, and t#e a&ount of t#e pa:&ent 8axpa:ers >#o clai& c#arita9le contri9utions &ade 9: pa:roll deduction can satisf: t#e recordEeeping require&ent if t#e donor #as /14 a pa: stu9, "@2, or ot#er docu&ent furnis#ed 9: t#e e&plo:er t#at states t#e a&ount >it##eld for pa:&ent to c#arit:, and /24 a pledge card ot#er docu&ent prepared 9: or at t#e direction of t#e c#arit: t#at s#o>s t#e na&e of a donee An organi;ation descri9ed in section 170/c4, or a .rincipal 1o&9ined Fund 7rgani;ation for purposes of t#e 1o&9ined Federal 1a&paign, >ill 9e treated as a donee organi;ation for purposes of t#e ne> recordEeeping pro%ision A donor clai&ing a deduction of J200 or &ore is also required to o9tain and Eeep a conte&poraneous >ritten acEno>ledg&ent for a c#arita9le contri9ution 8o 9e conte&poraneous t#e >ritten acEno>ledg&ent &ust generall: 9e o9tained 9: t#e donor no later t#an t#e date t#e donor files t#e return for t#e :ear t#e contri9ution is &ade 8#e >ritten acEno>ledg&ent &ust state >#et#er t#e donee pro%ides an: goods or ser%ices in consideration for t#e contri9ution -f t#e donee pro%ides goods or ser%ices to t#e donor in exc#ange for t#e contri9ution /a quid pro quo contri9ution4, t#e >ritten acEno>ledg&ent &ust include a good fait# esti&ate of t#e %alue of t#e goods or ser%ices 8#e donee is not required to record or report t#is infor&ation to t#e -R( on 9e#alf of a donor 8#e donor is responsi9le for requesting and o9taining t#e >ritten acEno>ledge&ent fro& t#e donee Alt#oug# t#ere is no prescri9ed for&at for t#e >ritten acEno>ledg&ent, it &ust pro%ide sufficient infor&ation to su9stantiate t#e a&ount of t#e contri9ution For &ore infor&ation, see .u9lication 1771 8#e conte&poraneous >ritten acEno>ledg&ent &a: 9e contained in t#e sa&e docu&ent as t#e >ritten co&&unication fro& t#e donee used to satisf: t#e ne> cas# recordEeeping require&ent, as long as it contains all infor&ation required 9: 9ot# t#e recordEeeping require&ent and t#e conte&poraneous >ritten acEno>ledg&ent require&ent For clai&ed contri9utions o%er J0,000, generall: a qualified appraisal prepared 9: a qualified appraiser &ust 9e o9tained For appraisals prepared in connection >it# returns or su9&issions filed after August 17, 2006, see Botice 2006@!6 Couse#old ite&s and clot#ing contri9uted to c#arit: after August 17, 2006 &ust 9e in at least good used condition to 9e deducti9le 8#is require&ent does not appl: to contri9utions of food, paintings, antiques, ot#er art o9Aects, Ae>elr: and ge&s, or collections, and does not appl: to a contri9ution of an ite& for >#ic# a deduction of &ore t#an J000 is clai&ed if t#e taxpa:er o9tains a qualified appraisal of t#e ite& Additional information

.u9lication 1771, Charitable Contributions - Substantiation and Disclosure Requirements ,pdates on +isclosure and (u9stantiation Rules -R1 6700 and -R1 6701 and 1#arita9le 1ontri9ution +eductions .u9lication 026, Charitable Contributions Required +isclosures @ online training at (ta:*xe&pt -R( go% 1ontri9utions of %e#icles

.age Last Re%ie>ed or ,pdatedF 2=@6an@2014 DISCLOSURE REQUIREMENTS REGARDING FINANCIAL DOCUMENTS THAT MUST BE PROVIDED TO A MEMBER OF THE PUBLIC UPON REQUEST

Federal tax documents must be available for inspection by the public 8#e follo>ing federal tax docu&ents s#ould 9e a%aila9le for inspection, upon request during nor&al 9usiness #ours, at :our principal office and an: regional or district office >it# t#ree or &ore full@ti&e e&plo:ees /or t#e part@ti&e equi%alent4 8#e 8axpa:erLs 3ill of Rig#ts enacted in 1!!6, also requires t#at :ou #onor in@person or >ritten requests for copies of t#ese docu&ents M 8#e annual federal tax return, form !!", for t#e preceding t#ree :ears **8#e cop: a%aila9le for pu9lic inspection s#ould include all attac#&ents, sc#edules, and t#e for& !!0@8, t#e *xe&pt 7rgani;ation 3usiness -nco&e 8ax Return /for for& !!0@8s filed after August 17, 20064, except :ou &a: o&itF lists of na&es and addresses of contri9utors M 8#e original application for tax exe&pt status, form #"$% or #"$&, >it# all &aterials su9&itted in support of t#e application M 8#e -R(Ls deter&ination letter issued in response to :our application for tax exe&pt status, or an: -R( letters issued in response to :our annual tax return "#en pro%iding pu9lic access to t#ese federal tax docu&entsF M +ocu&ents &ust 9e pro%ided free of c#arge, except t#at :ou &a: c#arge a reasona9le fee for reproduction and &ailing costs Nou MA' c#arge J1 00 for t#e first page and J0 10 for eac# additional page of cop:ing M Nou MA' NOT require t#e person &aEing t#e request to tell :ou t#e reason t#e: >ant to see t#e &aterials "#ile t#ere is a li&ited exception to t#e require&ent t#at :ou #a%e t#e &aterials a%aila9le at regional and 9ranc# offices, >e reco&&end :ou #a%e t#e &aterials a%aila9le at an: site >it# t#ree or &ore full@ti&e equi%alent e&plo:ees Some states also have public disclosure requirements for nonprofits financial documents. Consult your states charity regulatory authority for more information. #ttpFII>>> pgdc co&IpgdcIirs@releases@co&pliance@guide@tax@exe&pt@organi;ations@ot#er@ 001c3@pu9lic@c#arities@and@pri%ate@foundations ()at r*+ord, ,)o-ld .* /*0t1 *xcept in a fe> cases, t#e la> does not require a special Eind of record A tax@exe&pt organi;ation can c#oose an: recordEeeping s:ste&, suited to its acti%ities, t#at clearl: s#o>s t#e organi;ation?s inco&e and expenses 8#e t:pes of acti%ities a tax@exe&pt organi;ation conducts deter&ines t#e t:pe of records t#at s#ould 9e Eept for federal tax purposes A tax@exe&pt organi;ation s#ould set up a recordEeeping s:ste& using an accounting &et#od t#at is appropriate for proper &onitoring and reporting of its financial acti%ities for t#e tax :ear -f a tax@exe&pt organi;ation #as &ore t#an one progra&, it s#ould ensure t#at t#e records appropriatel: identif: t#e inco&e and expense ite&s t#at are attri9uta9le to eac# progra& A recordEeeping s:ste& s#ould generall: include a su&&ar: of transactions 8#is su&&ar: is ordinaril: >ritten in t#e tax@exe&pt organi;ation?s 9ooEs /for exa&ple, accounting Aournals and ledgers4 8#e 9ooEs &ust s#o> gross receipts, purc#ases, /deposits4, expenses /ot#er t#an purc#ases4, e&plo:&ent taxes, and assets For &ost s&all organi;ations, t#e c#ecE9ooE &ig#t 9e t#e &ain source for entries in t#e 9ooEs >#ile larger organi;ations >ould need &ore sop#isticated ledgers and records A tax@exe&pt organi;ation &ust Eeep docu&entation t#at supports entries in t#e 9ooEs

A++o-ntin2 P*riod, and M*t)od, 8ax@exe&pt organi;ations &ust Eeep t#eir financial records 9ased on an annual accounting period, called a tax :ear, in order to co&pl: >it# annual reporting require&ents Accounting Periods @@ A tax :ear is usuall: 12 consecuti%e &ont#s 8#ere are t>o Einds of tax :ears.
calendar tax :ear 8#is is a period of 12 consecuti%e &ont#s 9eginning 6anuar: 1 and ending +ece&9er 31 8#is is a period of 12 consecuti%e &ont#s ending on t#e last da: of an: &ont# except +ece&9er

fiscal tax :ear

Accounting Method @@ An accounting &et#od is a set of rules used to deter&ine >#en inco&e and expenses are reported A tax@exe&pt organi;ation c#ooses an accounting &et#od >#en it files its first annual return 8#ere are t>o 9asic accounting &et#odsF cas# &et#od ,nder t#e cas# &et#od, a tax@exe&pt organi;ation reports inco&e in t#e tax :ear recei%ed -t usuall: deducts expenses in t#e :ear paid ,nder an accrual &et#od, a tax@exe&pt organi;ation generall: records inco&e in t#e tax :ear earned /i e , in t#e tax :ear in >#ic# a pledge is recei%ed, e%en t#oug# it &a: recei%e pa:&ent in a later :ear4 -t records expenses in t#e tax :ear incurred, >#et#er or not it pa:s t#e expenses t#at :ear

accrual &et#od

For &ore infor&ation a9out accounting periods and &et#ods, see .u9lication 03=, Accounting Periods and Methods, and t#e instructions to For& !!0 and For& !!0@*H S-00ortin2 Do+-m*nt, 7rgani;ation transactions suc# as contri9utions, **purc#ases, sales, and **pa:roll >ill generate supporting docu&ents 8#ese docu&ents @@ grant applications and a>ards, sales slips, **paid 9ills, in%oices, receipts, deposit slips, and **canceled c#ecEs @@ contain infor&ation to 9e recorded in accounting records -t is i&portant to Eeep t#ese docu&ents 9ecause t#e: support t#e entries in 9ooEs and t#e entries on tax and infor&ation returns 8ax@exe&pt organi;ations s#ould Eeep supporting docu&ents organi;ed 9: :ear and t:pe of receipt or expense Also, Eeep records in a safe place Records 5anage&ent **$R7(( R*1*-.8(

$ross receipts are t#e a&ounts recei%ed fro& all sources, including contri9utions a tax@exe&pt organi;ation s#ould Eeep supporting docu&ents t#at s#o> t#e a&ounts and sources of its gross receipts docu&ents t#at s#o> gross receipts includeF donor correspondence, pledge docu&ents, cas# register tapes, **9anE deposit slips, receipt 9ooEs, in%oices, **credit card c#arge slips, and For&s 10!!@5-(1, Miscellaneous Income **.,R1CA(*(, -B1L,+-B$ A117,B8-B$ F7R -BO*B87RN .urc#ases are ite&s 9oug#t, including an: ite&s resold to custo&ers -f a tax@ exe&pt organi;ation produces ite&s, it &ust account for an: ite&s resold to custo&ers 8#us, for exa&ple, t#e organi;ation &ust account for t#e cost of all ra> &aterials or parts purc#ased for &anufacture into finis#ed products (upporting docu&ents s#ould s#o> t#e a&ount paid, and t#at t#e a&ount >as for purc#ases docu&ents for purc#ases includeF **canceled c#ecEs, cas# register tape receipts, **credit card sales slips, and in%oices 8#ese records >ill #elp an organi;ation deter&ine t#e %alue of its in%entor: at t#e end of t#e :ear (ee .u9lication 03=, Accounting Periods and Methods! for general infor&ation on &et#ods for %aluing in%entor: ***P.*B(*( *xpenses are t#e costs a tax@exe&pt organi;ation incurs /ot#er t#an purc#ases4 to carr: on its progra& (upporting docu&ents s#ould s#o> t#e a&ount paid and t#e purpose of t#e expense docu&ents for expenses includeF **canceled c#ecEs, cas# register tapes, contracts, **account state&ents, **credit card sales slips, in%oices, and **pett:@cas# slips for s&all cas# pa:&ents *5.L7N5*B8 8AP R*17R+( 7rgani;ations t#at #a%e e&plo:ees &ust Eeep records of co&pensation and specific e&plo:&ent tax records -nfor&ation related to independent contractors s#ould also 9e &aintained (ee .u9lication 10, Circular "! "mplo#er$s %a& 'uide! for details A((*8( K L-A3-L-8-*( Assets are t#e propert:, /suc# as in%est&ents, 9uildings, and furniture4 an organi;ation o>ns and uses in its acti%ities lia9ilities reflect t#e financial o9ligations of t#e organi;ation a tax@exe&pt organi;ation &ust Eeep records to %erif: certain infor&ation a9out its assets and lia9ilities Records s#ould s#o>F

>#en and #o> t#e asset >as acquiredG >#et#er an: de9t >as used to acquire t#e assetG docu&ents relating to &ortgages, notes, loans or ot#er for&s of de9tG purc#ase priceG cost of an: i&pro%e&entsG deductions taEen for depreciation, if an:G deductions taEen for casualt: losses, if an:, suc# as losses resulting fro& fires or stor&sG #o> t#e asset >as usedG

>#en and #o> t#e asset >as disposed ofG selling priceG expenses of sale +ocu&ents t#at &a: s#o> t#e a9o%e infor&ation includeF **purc#ase and sales in%oices, real estate closing state&ents, **canceled c#ecEs, and financing docu&ents -f a tax@exe&pt organi;ation does not #a%e canceled c#ecEs, it &a: 9e a9le to s#o> pa:&ent >it# certain financial account state&ents prepared 9: financial institutions 8#ese include account state&ents prepared for t#e financial institution 9: a t#ird part: all infor&ation, including account state&ents &ust 9e legi9le 8#e follo>ing defines accepta9le account state&ents

-F pa:&ent is 9:F 8C*B state&ent &ust s#o>F QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ **c#ecE c#ecE nu&9er, a&ount, pa:ee?s na&e, and date t#e c#ecE a&ount >as posted to t#e account 9: t#e financial institution QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ **electronic a&ount transferred, pa:ee?s na&e, funds transfer and date t#e transfer >as posted to t#e account 9: t#e financial institution QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ **credit card a&ount c#arged, pa:ee?s na&e, and transaction date Ho3 lon2 ,)o-ld r*+ord, .* /*0t1 8ax@exe&pt organi;ations &ust Eeep records for federal tax purposes for as long as t#e: &a: 9e needed to docu&ent e%idence of co&pliance >it# pro%isions of t#e 1ode $enerall:, t#is &eans t#e organi;ation &ust Eeep records t#at support an ite& of inco&e or deduction on a return until t#e statute of li&itations for t#at return runs 8#e statute of li&itations #as run >#en t#e organi;ation can no longer a&end its return and t#e -R( can no longer assess additional tax $enerall:, t#e statute of li&itations runs t#ree :ears after t#e date t#e return is due or filed, >#ic#e%er is later An organi;ation &a: 9e required to retain records longer for ot#er legal purposes, including state or local tax purposes R*+ord R*t*ntion P*riod, Record retention periods %ar: depending on t#e t:pes of records and returns Permanent ecords @@ (o&e records s#ould 9e Eept per&anentl: 8#ese include t#e application for recognition of tax@exe&pt status, t#e deter&ination letter recogni;ing tax@exe&pt status, and organi;ing docu&ents, suc# as articles of incorporation and 9:@ la>s, >it# a&end&ents, as >ell as 9oard &inutes !mployment "ax ecords @@ -f an organi;ation #as e&plo:ees, it &ust Eeep e&plo:&ent tax records for at least four :ears after t#e date t#e tax 9eco&es due or is paid, >#ic#e%er is later

ecords for #on$"ax Purposes @@ "#en records are no longer needed for tax purposes, an organi;ation s#ould Eeep t#e& until t#e: are no longer needed for non@tax purposes For exa&ple, a grantor, insurance co&pan:, creditor, or state agenc: &a: require t#at records 9e Eept longer t#an t#e -R( requires 4 %5a6 Pa7roll r*+ord, a, 0-.li+ r*+ord,8H*ld to .* 0-.li+ r*+ord, R1u&ulati%e (upple&entS -n t#e circu&stances of t#e follo>ing cases in%ol%ing questions as to pu9lic disclosure of pa:roll or salar: records of indi%idual go%ern&ent e&plo:ees, it >as #eld or ot#er>ise recogni;ed t#at suc# records >ere pu9lic records >it#in t#e &eaning of statutes or constitutional pro%isions aut#ori;ing access to pu9lic records, and it accordingl: >as #eld in a nu&9er of cases t#at t#e records >ere su9Aect to disclosure to t#e pu9lic **(ee 3raun % 1it: of 8aft /1!=4, 0t# +ist4 104 1al App 3d 332, 201 1al Rptr 604, 2 0 4 %5.6 Pa7roll r*+ord, a, 0-.li+ r*+ord,8H*ld not to .* 0-.li+ r*+ord, .u9lic e&plo:ees? pri%ac: interest in nondisclosure of indi%iduall: identifia9le salaries out>eig#ed pu9lic interest in disclosure, for purpose of deter&ining propriet: of preli&inar: inAunction pro#i9iting disclosure of detailed salar: infor&ation in action 9roug#t 9: ne>spaper against cities under 1alifornia .u9lic Records Act /1.RA4G e%idence supporting nondisclosure included cit: polic: &anuals and union agree&ents indicating salar: data >as confidential, e&plo:ees? reasona9le expectations of pri%ac:, release of ot#er detailed infor&ation concerning t#e pa:&ent of e&plo:ees, and lacE of e%idence suggesting release of t#e e&plo:ees? na&es and t#eir co&pensation >ould ad%ance pu9lic interest in efficient go%ern&ental operations "est?s Ann 1al $o% 1ode 22 6200 et seq 8ea&sters Local =06 % .riceless, LL1, 112 1al App 4t# 1000, 0 1al Rptr 3d =47 /1st +ist 20034 **-n action 9: union under Freedo& of -nfor&ation Act to co&pel disclosure of na&es of eig#t e&plo:ees listed on certified pa:roll reports su9&itted to federal go%ern&ent 9: non@union contractor in connection >it# one construction Ao9, disclosure >as >arranted >#ere re%ealing e&plo:ee?s >ages for onl: one Ao9 >ould not 9e e&9arassing, pu9lic?s interest in assuring t#at anti@EicE9acE and pre%ailing@>age la>s >ere 9eing enforced out>eig#ed an: e&9arass&ent to e&plo:ees fro& disclosure of t#eir non@union status, pri&e function of Act >as to ena9le pu9lic to sur%e: operations of its go%ern&ent, and it did not appear t#at union could #a%e o9tained desired infor&ation readil:, if at all, 9: ot#er &eans -nternational 3rot# of *lec "orEers, Local 41 % , ( +ept of Cousing and ,r9an +e%elop&ent, 763 F 2d 430, 103 La9 1as /11C4 T11010 /+ 1 1ir 1!=04 **+isclosure of gross salaries of all cit: e&plo:ees >#o earned at least J100,000 to ne>spaper t#at soug#t infor&ation did not constitute Uun>arranted in%asion of pri%ac:U >it#in &eaning of exe&ption fro& disclosure in 1alifornia .u9lic Records Act /1.RA4G disclosure of salar: infor&ation #ad 9een longstanding practice of federal, state, and

local go%ern&ents including t#is cit: until it #ad recentl: passed ordinance to contrar:, and disclosing suc# infor&ation furt#ered strong pu9lic interest in Eno>ing #o> go%ern&ent &one: >as spent "est?s Ann 1al $o% 1ode 22 6204/c4, 6200/a4 -nternational Federation of .rofessional and 8ec#nical *ngineers, Local 21, AFL@1-7 % (uperior 1ourt, 42 1al 4t# 31!, 64 1al Rptr 3d 6!3, 160 . 3d 4==, 26 - * R 1as /3BA4 !40, 30 5edia L Rep /3BA4 20!0 /20074 **8#e disclosure of pu9lic salar: infor&ation under t#e .u9lic Records Act does not %iolate t#e rig#t of pri%ac: protected 9: t#e 1alifornia 1onstitution "est?s Ann 1al 1onst Art 1, 2 1G "est?s Ann 1al $o% 1ode 2 6200 et seq (acra&ento 1ount: *&plo:ees? Retire&ent (:ste& % (uperior 1ourt, 1!0 1al App 4t# 440, 2011 "L 17!71!! /3d +ist 20114 **-n action 9roug#t 9: cit: council&an, >#o #ad 9een censured for release of salar: card of cit: firefig#ter to &e&9er of press, for >rit of &andate to set aside censure action, trial court properl: found t#at salar: card #ad 9een pu9lic record and #ad not 9een confidential personnel record, >#ere salar: card, s#o>ing firefig#ter?s salar: along >it# ot#er personal infor&ation, #ad 9een clearl: related to conduct of cit:?s 9usiness and t#us #ad 9een pu9lic record, >#ere state statute exe&pting personnel records fro& disclosure to pu9lic in situations >#ere disclosure >ould constitute un>arranted in%asion of personal pri%ac: #ad not applied, inas&uc# as, e%en t#oug# infor&ation on salar: card #ad 9een of personal nature and t#ere #ad 9een c#ance of in%asion of pri%ac:, data listed on card #ad not 9een in an: >a: e&9arrassing and salar: classification #ad 9een pu9lic infor&ation, >#ere cit: #ad not s#o>n t#at pu9lic interest in nondisclosure #ad clearl: out>eig#ed pu9lic interest ser%ed 9: disclosure, and >#ere, in 9alancing constitutional rig#t to pri%ac: against pu9lic?s interest in cit:?s 9usiness, trial court #ad carefull: considered clas# 9et>een need for pu9lic disclosure of its 9usiness and need 9: indi%idual for pri%ac: in deter&ining t#at t#ere #ad 9een no in%asion of pri%ac: 3raun % 1it: of 8aft, 104 1al App 3d 332, 201 1al Rptr 604 /0t# +ist 1!=44 13! alr fed 22! What Constitutes "Trade Secrets and Commercial or Financial Information Obtained From Person and Privileged or Confidential," Exempt From Disclosure Under Freedom of Information Act (5 U.S.C.A. 552(b)(4)) (FOIA)

2 22RaS .ersonnel infor&ationV(u9Aect to disclosure R1u&ulati%e (upple&entS Affir&ati%e action plans, equal e&plo:&ent reports and ot#er infor&ation relating to personnel and pa:roll &atters su9&itted to go%ern&ent agencies 9: contractors and ot#ers #a%e 9een t#e su9Aect of disclosure requests under t#e Freedo& of -nfor&ation Act /0 , ( 1 A 2 0024 /F7-A4 8#e courts in t#e follo>ing cases #a%e #eld t#at t#is t:pe of infor&ation is not exe&pt fro& disclosure under exe&ption 4 /0 , ( 1 A 2 002/94 /444 -n Be>s $roup 3oston, -nc % Bational R .assenger 1orp /1!!2, +1 5ass4 7!! F (upp 1264, 20 5edia L R 1=16, pa:roll infor&ation concerning A&traE e&plo:ees >as found not to 9e exe&pt fro& disclosure under F7-A, despite A&traE?s argu&ent t#at disclosure of its la9or costs &ig#t t#reaten its o%erall producti%it: and a9ilit: to co&pete in t#e &arEetplace 8#e court found no specific factual or e%identiar: proof to support A&traE?s clai&

**Rig#t of pri%ac:, 14 A L R 2d 700 **"ai%er or loss of rig#t of pri%ac:, 07 A L R 3d 16 0 u s c 002

061 @@@@ 5andator: nature of exe&ptions, financial institutions, regulation or super%ision of, exe&ptions generall: Literal application of statutor: exe&ption against disclosure afforded &atters contained in or related to exa&ination, operating, or condition reports prepared 9:, on 9e#alf of, or for use of an agenc: responsi9le for regulation or super%ision of financial institutions >ill not pre%ent disclosure of closed 9anE records 'for centuries) contrar: to polic: of encouraging reasona9le full disclosure of go%ern&ental acti%ities inas&uc# as agenc: is free to release records and its discretion in respect t#ereto is exercised pursuant to pu9lis#ed regulations $regor: % Federal +eposit -ns 1orp , 1 A + 1 1!=0, 631 F 2d =!6, 203 , ( App + 1 314 Records 04 13=4 @@@@ (ecurities and *xc#ange 1o&&ission personnel, in%asion of pri%ac:, records co&piled for la> enforce&ent purposes 7f t#e na&es, addresses, social securit: nu&9ers and p#one nu&9ers of indi%iduals &entioned in securities transaction reports, **9anE records, lists of su9scri9ers, (ecurities and *xc#ange 1o&&ission &e&os and ot#er records >it##eld 9: 1o&&ission pursuant to in%estigator: recordsIpersonal pri%ac: exe&ption, plaintiff >as entitled onl: to release of na&es of 1o&&ission e&plo:ees, since, as to t#at infor&ation, t#ere >as legiti&ate pu9lic interest in Eno>ing >#o at t#e 1o&&ission conducted an in%estigation so t#ose indi%iduals could 9e su9Aect to inquir: 1anadian 6a%elin, Ltd % (ecurities and *xc#ange 1o&&ission, + 1 + 1 1!=0, 001 F (upp =!= Records 60 120! "age and pa: infor&ation, personnel, &edical and si&ilar files causing in%asion of personal pri%ac: **+isclosure of >ages fro& a particular Ao9 >ould not disclose or gi%e Ee: to a disclosure of a person?s entire inco&e to extent t#at disclosure >ould 9e so e&9arrassing as to >arrant application of exe&ption fro& disclosure for personnel and &edical files under su9sec /94/64 of t#is section disclosure of >#ic# >ould constitute clearl: un>arranted in%asion of personal pri%ac: -nternational 3rot# of *lec "orEers Local 41 % , ( +ept of Cousing and ,r9an +e%elop&ent, + 1 + 1 1!=4, 0!3 F (upp 042, affir&ed 763 F 2d 430, 246 , ( App + 1 140 Records 0= **8#e release of t#e Austifications for co@e&plo:ee?s a>ards >ould constitute &ore t#an a de &ini&is in%asion of pri%ac:, as t#e: necessaril: included personal, al9eit positi%e, infor&ation regarding #is Ao9 perfor&ance, and t#us, Freedo& of -nfor&ation Act /F7-A4 exe&ption for personnel records >as applica9le to F7-A request 9roug#t 9: e&plo:ee of t#e $eneral (er%ices Ad&inistration /$(A4 >#o soug#t infor&ation regarding >#: co@e&plo:ee at t#e $(A >as gi%en certain a>ards and financial 9onusesG co@e&plo:ee?s interest in Eeeping personal infor&ation regarding #is Ao9 perfor&ance pri%ate out>eig#ed an: interest t#e pu9lic &ig#t #a%e in disclosure of suc# infor&ation 8o&sc#a % $eneral (er%ices Ad&in , 1 A 2 /B N 4 2000, 10= Fed Appx 32!, 2000 "L 3406070, ,nreported Records 0=

%%"9 Finan+ial r*+ord, **+ocu&ent containing &ost recent aggregate figures s#o>ing a&ount of deposits in ,nited (tates 9anEs 9: foreign persons fro& 3 Ara9 countries and a&ount of 8reasur: 9ills o>ned or #eld 9: suc# persons is protected fro& disclosure in action under Freedo& of -nfor&ation Act 9: *xe&ption 1 /0 ,(1( 2 002/94/144, >#ere docu&ent is properl: classified UconfidentialU pursuant to *xecuti%e 7rder Bo 12060 and affida%its of 8reasur: +epart&ent officials s#o> #ar& to national securit: t#at could reasona9l: result fro& disclosure, especiall: in %ie> of expressed desire of foreign go%ern&ents in%ol%ed to Eeep infor&ation #eld in confidence A&erican 6e>is# 1ongress % +epart&ent of 8reasur: /1!=2, +1 +ist 1ol4 04! F (upp 1270, affd >it#out op /1!=3, App +14 230 ,( App +1 70, 713 F2d =64, cert den /1!=34 464 ,( =!0, 7= L *d 2d 233, 104 ( 1t 244 :%"9 Finan+ial r*+ord, or information **8#ere >as no indication t#at requested e@&ails contained infor&ation a9out eit#er of aut#ors? personal finances, as >ould 9e found in 9anE state&ents or tax returns and one?s financial interest in ot#er?s fir& did not lead to protection for t#eir 9usiness discussionsG &oreo%er, (*1 failed to pro%ide an: support for its o%erl: generous interpretation of Upersonal financial infor&ation,U and t#us, court found t#at co&&unications 9et>een t#e& >ere not protected 9: Freedo& of -nfor&ation Act /F7-A4, 0 ,(1( 2 002, *xe&ption 7/14 Aguirre % (*1 /200=, +1 +ist 1ol4 001 F (upp 2d 33 (ee pri%Qco&&unQconfidQot#erQpri%Q9anEQKQcusto&erQ9anEQrecordsQfedQallQdigest doc R1ited 1! ti&es for t#is legal issueS Carris % , ( , 413 F 2d 316 1 A ! 1al ,1!6! **1o&&unications 9et>een 9anE and depositor are not pri%ileged **2! 8esti&onial or e%identiar: pri%ilege in respect of 9usiness transactions 9et>een 9anEer or 9roEer and custo&er, 10! A L R 1400 /1!374 HN; $<= >F9R9D9?

**(neirson % 1#e&ical 3anE, 10= F R + 10!

R1ited 3 ti&es for t#is legal issueS

+ +el ,1!=0 .ri%ilege against 9anE?s disclosure of custo&er?s financial records in 9anE?s custod: >as not esta9lis#ed 9: reference to Rig#t to Financial .ri%ac: Act, 12 , ( 1 A 2 3401 et seq , >#ic# li&its go%ern&ent access to indi%idual financial records, not access in litigation 9et>een t>o pri%ate parties Rig#t to Financial .ri%ac: Act of 1!7=, 22 1101 et seq , 1110, 12 , ( 1 A 22 3401 et seq , 3410 **112 ALR, Fed 2!0, 1onstruction and Application of Rig#t to Financial .ri%ac: Act of 1!7= /12 , ( 1 A 22 3401 et seq 4 12 , ( 1 2 3403 1onfidentialit: of financial records /a4 Release of records 9: financial institutions pro#i9ited Bo financial institution, or officer, e&plo:ees, or agent of a financial institution, &a: pro%ide to an: $o%ern&ent aut#orit: access to or copies of, or t#e infor&ation contained in, t#e financial records of an: custo&er except in accordance >it# t#e pro%isions of t#is c#apter /94 Release of records upon certification of co&pliance >it# c#apter

A financial institution s#all not release t#e financial records of a custo&er until t#e $o%ern&ent aut#orit: seeEing suc# records certifies in >riting to t#e financial institution t#at it #as co&plied >it# t#e applica9le pro%isions of t#is c#apter /c4 Botification to $o%ern&ent aut#orit: of existence of rele%ant infor&ation in records Bot#ing in t#is c#apter s#all preclude an: financial institution, or an: officer, e&plo:ee, or agent of a financial institution, fro& notif:ing a $o%ern&ent aut#orit: t#at suc# institution, or officer, e&plo:ee, or agent #as infor&ation >#ic# &a: 9e rele%ant to a possi9le %iolation of an: statute or regulation (uc# infor&ation &a: include onl: t#e na&e or ot#er identif:ing infor&ation concerning an: indi%idual, corporation, or account in%ol%ed in and t#e nature of an: suspected illegal acti%it: (uc# infor&ation &a: 9e disclosed not>it#standing an: constitution, la>, or regulation of an: (tate or political su9di%ision t#ereof to t#e contrar: An: financial institution, or officer, e&plo:ee, or agent t#ereof, &aEing a disclosure of infor&ation pursuant to t#is su9section, s#all not 9e lia9le to t#e custo&er under an: la> or regulation of t#e ,nited (tates or an: constitution, la>, or regulation of an: (tate or political su9di%ision t#ereof, for suc# disclosure or for an: failure to notif: t#e custo&er of suc# disclosure /d4 Release of records as incident to perfection of securit: interest, pro%ing a clai& in 9anEruptc:, collecting a de9t, or processing an application >it# regard to a $o%ern&ent loan, loan guarantee, etc /14 Bot#ing in t#is c#apter s#all preclude a financial institution, as an incident to perfecting a securit: interest, pro%ing a clai& in 9anEruptc:, or ot#er>ise collecting on a de9t o>ing eit#er to t#e financial institution itself or in its role as a fiduciar:, fro& pro%iding copies of an: financial record to an: court or $o%ern&ent aut#orit: /24 Bot#ing in t#is c#apter s#all preclude a financial institution, as an incident to processing an application for assistance to a custo&er in t#e for& of a $o%ern&ent loan, loan guarant:, or loan insurance agree&ent, or as an incident to processing a default on, or ad&inistering, a $o%ern&ent guaranteed or insured loan, fro& initiating contact >it# an appropriate $o%ern&ent aut#orit: for t#e purpose of pro%iding an: financial record necessar: to per&it suc# aut#orit: to carr: out its responsi9ilities under a loan, loan guarant:, or loan insurance agree&ent
1 .urpose

Rig#t to Financial .ri%ac: Act /RF.A4 >as passed 9: 1ongress in order to pro%ide protection against unrestricted access to financial records to fill in %oid left 9: (upre&e 1ourt?s #olding in (nited States v Miller t#at 9anE custo&er #as no constitutionall: protected pri%ac: interests in 9anE records 5c+onoug# % "idnall, + 1olo 1!!0, =!1 F (upp 143! 3anEs And 3anEing 101 U9 S9 @9 Mill*r< &$= U9S9 &%=< &&$< !A S9Ct9 #A#!< &B L9Ed9$d :#< >U9S9Ga9< A0r $#< #!:A? Respondent urges t#at #e #as a Fourt# A&end&ent interest in t#e records Eept 9: t#e 9anEs 9ecause t#e: are &erel: copies of personal records t#at >ere &ade a%aila9le to t#e 9anEs for a li&ited purpose and in >#ic# #e #as a reasona9le expectation of pri%ac: Ce relies on t#is 1ourt?s state&ent in <at; % ,nited (tates, 3=! , ( 347, 303, == ( 1t 007, 012, 1! L *d 2d 076, 0=3 /1!674, quoting "arden % Ca:den, 3=7 , ( 2!4, 304, =7 ( 1t 1642, 164=, 1= L *d 2d 7=2, 7!0 /1!674, t#at '>e #a%e departed fro& t#e narro> %ie>) t#at ' Wpropert: interests control t#e rig#t of t#e $o%ern&ent to searc# and sei;e,L ) and t#at a 'searc# and

sei;ure) 9eco&e unreasona9le >#en t#e $o%ern&ent?s acti%ities %iolate 't#e pri%ac: upon >#ic# /a person4 Austifia9l: relie/s4 ) 3ut in <at; t#e 1ourt also stressed t#at '/>4#at a person Eno>ingl: exposes to t#e pu9lic is not a su9Aect of Fourt# A&end&ent protection ) 3=! , ( , at 301, == ( 1t , at 011, 1! L *d 2d, at 0=2 "e &ust exa&ine t#e nature of t#e particular docu&ents soug#t to 9e protected in order to deter&ine >#et#er t#ere is a legiti&ate 'expectation of pri%ac:) concerning t#eir contents 1f 1ouc# % ,nited (tates, 40! , ( 322, 330, !3 ( 1t 611, 34 L *d 2d 04=, 00=, 61! /1!734 R0S *%en if >e direct our attention to t#e original c#ecEs and deposit slips, rat#er CC#A$& t#an to t#e &icrofil& copies actuall: %ie>ed and o9tained 9: &eans of t#e su9poena, **>e percei%e no legiti&ate 'expectation of pri%ac:) in t#eir contents 8#e c#ecEs are not confidential co&&unications 9ut negotia9le instru&ents to 9e used in co&&ercial transactions All of t#e docu&ents o9tained, including financial state&ents and deposit slips, contain onl: infor&ation %oluntaril: con%e:ed to t#e 9anEs and exposed to t#eir e&plo:ees in t#e ordinar: course of 9usiness 8#e lacE of an: legiti&ate expectation of pri%ac: concerning t#e infor&ation Eept in 9anE records >as assu&ed 9: 1ongress in enacting t#e 3anE (ecrec: Act, t#e expressed purpose of >#ic# is to require records C&&% to 9e &aintained 9ecause t#e: '#a%e a #ig# degree of usefulness in cri&inal tax, and regulator: in%estigations and proceedings ) 12 , ( 1 s 1=2!9/a4/14 1f Couch v (nited States! supra! at 330, !3 ( 1t , at 61!, 34 L *d 2d, at 00= R6S 8#e depositor taEes t#e risE, in re%ealing #is affairs to anot#er, t#at t#e infor&ation >ill 9e con%e:ed 9: t#at person to t#e $o%ern&ent ,nited (tates % "#ite, 401 , ( 740, 701@702, !1 ( 1t 1122, 1120@1126, 2= L *d 2d 403, 40=@40! /1!714 8#is 1ourt #as #eld repeatedl: t#at t#e Fourt# A&end&ent does not pro#i9it t#e o9taining of infor&ation re%ealed to a t#ird part: and con%e:ed 9: #i& to $o%ern&ent aut#orities, e%en if t#e infor&ation is re%ealed on t#e assu&ption t#at it >ill 9e used onl: for a li&ited purpose and t#e confidence placed in t#e t#ird part: >ill not 9e 9etra:ed -d , at 702, !1 ( 1t , at 1126, 2= L *d 2d, at 40!G Coffa % ,nited (tates, 3=0 , ( at 302, =7 ( 1t , at 413, 17 L *d 2d, at 3=2G Lope; % ,nited (tates, 373 , ( 427, =3 ( 1t 13=1, 10 L *d 2d 462 /1!634 FB4 FB4 "e do not address #ere t#e question of e%identiar: pri%ileges, suc# as t#at protecting co&&unications 9et>een an attorne: and #is client 1f Fis#er % ,nited (tates, 420 , ( , at 403@400, !6 ( 1t , at 1077, 4= L *d 2d, at 01@03 8#is anal:sis is not c#anged 9: t#e &andate of t#e 3anE (ecrec: Act t#at records of depositors? transactions 9e &aintained 9: 9anEs -n 1alifornia 3anEers Assn % (#ult;, 416 , ( , at 02@03, !4 ( 1t , at 1012@1013, 3! L *d 2d, at =30@=36, >e reAected t#e contention t#at 9anEs, >#en Eeeping records of t#eir depositors? transactions pursuant to t#e Act, are acting solel: as agents of t#e $o%ern&ent 3ut, e%en if t#e 9anEs could 9e said to #a%e 9een acting solel: as $o%ern&ent agents in transcri9ing t#e necessar: infor&ation and co&pl:ing >it#out protest FB0 >it# t#e require&ents of t#e su9poenas, t#ere >ould 9e no intrusion upon t#e depositors? Fourt# A&end&ent rig#ts (ee 7s9orn % ,nited (tates, 3=0 , ( 323, =7 ( 1t 42!, 17 L *d 2d 3!4 /1!664G Le>is % ,nited (tates, 3=0 , ( 206, =7 ( 1t 424, 17 L *d 2d 312 /1!664

-n t#e , ( % 5iller, 420 , ( 430, 442, !6 ( 1t 161!, 4= L *d 2d 71, /, ( $a , Apr 21, 1!764, t#e court citing, <at; % ,nited (tates, 3=! , ( 347, 301, == ( 1t 007, 012, 1! L *d 2d 076, 0=3 /1!674, stated, '/>4#at a person Eno>ingl: exposes to t#e pu9lic is not a su9Aect of Fourt# A&end&ent protection ) And t#e court stated,
if >e direct our attention to t#e original c#ecEs and deposit slips, rat#er CC#A$& t#an to t#e &icrofil& copies actuall: %ie>ed and o9tained 9: &eans of t#e su9poena, **>e percei%e no legiti&ate 'expectation of pri%ac:) in t#eir contents 8#e c#ecEs are not confidential

co&&unications 9ut negotia9le instru&ents to 9e used in co&&ercial transactions All of t#e docu&ents o9tained, including financial state&ents and deposit slips, contain onl: infor&ation %oluntaril: con%e:ed to t#e 9anEs and exposed to t#eir e&plo:ees in t#e ordinar: course of 9usiness 8#e lacE of an: legiti&ate expectation of pri%ac: concerning t#e infor&ation Eept in 9anE records >as assu&ed 9: 1ongress in enacting t#e 3anE (ecrec: Act, t#e expressed purpose of >#ic# is to require records C&&% to 9e &aintained 9ecause t#e: '#a%e a #ig# degree of usefulness in cri&inal tax, and regulator: in%estigations and proceedings ) 12 , ( 1 s 1=2!9/a4/14 1f Couch v (nited States! supra! at 330, !3 ( 1t , at 61!, 34 L *d 2d, at 00=

R6S 8#e depositor taEes t#e risE, in re%ealing #is affairs to anot#er, t#at t#e infor&ation >ill 9e con%e:ed 9: t#at person to t#e $o%ern&ent ,nited (tates % "#ite, 401 , ( 740, 701@702, !1 ( 1t 1122, 1120@1126, 2= L *d 2d 403, 40=@40! /1!714 8#is 1ourt #as #eld repeatedl: t#at t#e Fourt# A&end&ent does not pro#i9it t#e o9taining of infor&ation re%ealed to a t#ird part: and con%e:ed 9: #i& to $o%ern&ent aut#orities, e%en if t#e infor&ation is re%ealed on t#e assu&ption t#at it >ill 9e used onl: for a li&ited purpose and t#e confidence placed in t#e t#ird part: >ill not 9e 9etra:ed -d , at 702, !1 ( 1t , at 1126, 2= L *d 2d, at 40!G Coffa % ,nited (tates, 3=0 , ( at 302, =7 ( 1t , at 413, 17 L *d 2d, at 3=2G Lope; % ,nited (tates, 373 , ( 427, =3 ( 1t 13=1, 10 L *d 2d 462 /1!634 FB4 /, ( % 5iller, supra, 420 , ( 430, 442@4434 **(tate prisoner?s Fair 1redit Reporting Act and state and federal Rig#t to Financial .ri%ac: Act clai&s arising out of ongoing prosecution in state court, >#ic# >ere not 9roug#t under 2 1!=3, s#ould not #a%e 9een dis&issed pursuant to rule precluding accrual of 2 1!=3 clai& >#en successful clai& >ould necessaril: i&pl: in%alidit: of con%iction in pending cri&inal prosecution 42 , ( 1 A 2 1!=3 Noung % 8rans ,nion, 260 Fed Appx 1 /!t# 1ir 20074. R1ited 0 ti&es for t#is legal issueS

**, ( 3anE Bat Ass?n % 6a&es, 264 F R + 17

+ 5e ,2010 (ince a custo&er?s 9anE records lacE an: legiti&ate expectation of pri%ac:, su9poena seeEing a part:?s 9anE records &a: not 9e quas#ed on t#is 9asis

**, ( 3anE Bat Ass?n % 6a&es, 264 F R + 17

R1ited 0 ti&es for t#is legal issueS

+ 5e ,2010 -nfor&ation soug#t in 9anE?s su9poena, for infor&ation on 'all accounts o>ned in >#ole or in part) 9: 9orro>er >as not pri%ileged, as required for 9orro>er to quas# su9poena in &ortgage foreclosure actionG 9orro>er #ad no legiti&ate expectation of pri%ac: in financial 9anEing records Biester % 5oore, 200! "L 217!306 "est <e:(u&&ar:R1S * + .a ,200!+isco%er: infor&ation requested 9: li&ited lia9ilit: corporation /LL14 related to 9anE accounts >ere not i&pliedl: confidential, and t#erefore LL1?s &otion to co&pel >as granted in LL1?s negligence action against 9anE LL1 alleged t#e 9anE >as negligent for allo>ing t#e creation of an account >it#out doing due diligence for accepting t#e deposited c#ecEs "#ile a .enns:l%ania court #ad pre%iousl: recogni;ed a dut: on a 9anE to Eeep custo&er?s 9anE account infor&ation confidential as an i&plied contractual dut:, t#e request for 9anE records >as a for&al request for disco%er: &ade pursuant to LL1?s litigation .a 1 ( 2 3404 1 311CE407201!43=36100101201!43=361001

**-ndi%idual Reference (er%ices $roup, -nc % F 8 1 , 140 F (upp 2d 6

+ + 1 ,2001

R1ited 0 ti&es for t#is legal issueS

.ri%ac: protection under t#e $ra&&@Leac#@3lile: Act exists e%en >#ere t#e infor&ation is ot#er>ise pu9licl: a%aila9leF t#e infor&ation is still protected, as long as it >as deri%ed using nonpu9lic personal infor&ation $ra&&@Leac#@3lile: Act, 2 00!/44/14/i4, 10 , ( 1 A 2 6=0!/44/14/i4
4= Oalidit:, 1onstruction, and Application of -nfor&ation .ri%ac: .ro%isions of $ra&&@Leac#@3lile: Act, 10 , ( 1 A secs 6=01 to 6=0!, and Regulations .ro&ulgated 8#ereunder, 0 A L R Fed 2d 4!7 /20004 HN; $ >F9S-009$d?

**-n re Request For 6udicial Assistance fro& (eoul +ist 1ri&inal 1ourt, (eoul, <orea,

R1ited 3 ti&es for t#is legal issueS

000 F 2d 720 1 A ! 1al ,1!77 Rig#t of pri%ac:, as recogni;ed under 1alifornia 1onstitution, affords li&ited protection to 9anE custo&er infor&ation, in t#at t#e 9anE is to 9e dee&ed to #a%e agreed not to di%ulge suc# infor&ation a9sent court orderG #ence, no state la> pri%ilege precluded co&pelled production of t#e records in response to request 9: foreign tri9unal for assistance in procuring t#e records in connection >it# in%estigation of foreign citi;en for %iolating currenc: la>s 2= , ( 1 A 2 17=2 1onstQla>Qrig#tQtoQpri%acc:QparticQissuesQapplicQpu9licQe&plo:eesQKQofficialsQfinancialQ infor&ationQcaQallQdigest doc

**5angu& % Action 1ollection (er%ice, -nc , 070 F 3d !30

R1ited 1 ti&es for t#is legal issueS

1 A ! -da#o,200! 1it: e&plo:ee lacEed reasona9le expectation of pri%ac: in 9ad c#ecEs t#at s#e issued and placed in strea& of co&&erce, t#ere9: precluding #er clai& against cit: for depri%ation of #er rig#t to pri%ac: or rig#t to infor&ational pri%ac: 9: o9taining copies of #er 9ad c#ecEs fro& de9t collector, since c#ecEs >ere not confidential co&&unications 9ut negotia9le instru&ents to 9e used in co&&ercial transactions and contained infor&ation %oluntaril: con%e:ed to t#ird parties 1FR 2402 30 +efinitions As used in t#is part, Agenc# &eans an: executi%e depart&ent, &ilitar: depart&ent, go%ern&ent corporation, go%ern&ent controlled corporation, or ot#er esta9lis#&ent in t#e executi%e 9ranc# of t#e Federal $o%ern&ent, or an: independent regulator: agenc: A pri%ate organi;ation is not an agenc: e%en if it is perfor&ing >orE under contract >it# t#e $o%ern&ent or is recei%ing Federal financial assistance $rantee and contractor records are not su9Aect to t#e F7-A unless t#e: are in t#e possession or under t#e control of ((A or its agents (olel: for t#e purpose of disclosure under t#e F7-A, >e consider records of indi%idual 9eneficiaries located in t#e (tate +isa9ilit: +eter&ination (er%ices /++(4 to 9e agenc: records **27 ALR 4t# 742, "#at 1onstitutes an Agenc: (u9Aect to Application of (tate Freedo& of -nfor&ation Act **40 ALR 4t# 333, "#at 1onstitutes Legiti&ate Researc# 6ustif:ing -nspection of (tate or Local .u9lic Records Bot 7pen to -nspection 9: $eneral .u9lic **100 ALR 3rd 6!!, .a:roll Records of -ndi%idual $o%ern&ent *&plo:ees as (u9Aect to +isclosure to .u9lic

**361 "#at 1onstitutes UAgenc:U for .urposes of Freedo& of -nfor&ation Act /0 , ( 1 A s0024, 160 A L R Fed 0!1 /20004 HN; #<:<#$<#&<#= >F9$d?

**"#at is Uagenc:U >it#in &eaning of Federal (uns#ine Act /0 , ( 1 A 2 00294, 6= A L R Fed =42 **5eaning of ter& Uagenc:U for purposes of Freedo& of -nfor&ation Act /0 , ( 1 A 2 0024, 07 A L R Fed 2!0 *x#austion of ad&inistrati%e re&edies as prerequisite to Audicial action to co&pel disclosure under Freedo& of -nfor&ation Act /F7-A4 /0 , ( 1 A sec 0024, 112 A L R Fed 061 /1!!34

*4 +isco%er: and inspection of inco&e tax returns in actions 9et>een pri%ate indi%iduals, 70 A L R 2d 240 /1!604 3 Oalidit:, construction, and effect of state la>s requiring pu9lic officials to protect confidentialit: of inco&e tax returns or infor&ation, 1 A L R 4t# !0! /1!=04
70 A L R 2d 240 +isco%er: and inspection of inco&e tax returns in actions 9et>een pri%ate indi%iduals , ( % 1ontinental 3anE K 8rust 1o , 003 F 2d 40, 34 A F 8 R 2d 74@0=31, 74@2 ,(81 . !6=6 /10t# 1ir /,ta#4, (ep 10, 1!744 .etition 9: -nternal Re%enue (er%ice for Audicial enforce&ent of su&&ons de&anding t#at 9anE produce for exa&ination records reflecting deposits to account of na&ed 9anE custo&ers and cancelled c#ecEs dra>n on account 8#e ,nited (tates +istrict 1ourt for t#e +istrict of ,ta#, "illis " Ritter, 6 , granted t#e (er%ice?s &otion for su&&ar: Audg&ent, and t#e 9anE appealed 8#e 1ourt of Appeals, Le>is, 1#ief 6udge, #eld t#at co&pliance >it# su&&ons >ould not i&pose unreasona9le financial 9urden on 9anE in lig#t of (er%ice?s offer to pro%ide personnel and equip&ent required to locate and cop: requested records, and t#at 9anE did not #a%e rig#t to assert t#at co&pliance >it# su&&ons constituted an infringe&ent upon rig#t of pri%ac: of persons na&ed as pa:ees on c#ecEs dra>n on account or as dra>ers on c#ecEs pa:a9le to account Affir&ed "est Ceadnotes R1S 1onstitutional La> !2 414!

!2 1onstitutional La> !2PPO-- +ue .rocess !2PPO--/$4 .articular -ssues and Applications !2PPO--/$46 8axation !2E414! E Federal 8axesG -nternal Re%enue /For&erl: !2E2=64

5ost 1ited 1ases

1o&pliance >it# su&&ons issued 9: -nternal Re%enue (er%ice and seeEing fro& 9anE records reflecting deposits to t#e accounts of na&ed custo&ers for a t>o@:ear period and cancelled c#ecEs dra>n on custo&ers? accounts for t>o@:ear period did not i&pose an unreasona9le financial 9urden on 9anE so as to result in an unconstitutional taEing under t#e Fift# A&end&ent, >#ere none of cost of exa&ination of records >ould 9e attri9uta9le to efforts not essential to ser%ice?s in%estigation of 9anE custo&ers, 9anE >as asEed onl: to pro%ide use of records identified specificall: 9: custo&ers? na&es and account nu&9ers, (er%ice offered to pro%ide personnel and equip&ent required

to locate and cop: needed records and 9anE >ould in fact incur onl: a &ini&al financial 9urden 26 , ( 1 A /- R 1 1!044 22 7602, 7603G , ( 1 A 1onst A&ends 4, 0 R2S -nternal Re%enue 220 4000

220 -nternal Re%enue 220PP *xa&ination of .ersons and Records 220E4000 E 3anEs and 3anE Records /For&erl: 220E14604

5ost 1ited 1ases 407

.ri%ileged 1o&&unications and 1onfidentialit: 311C

311C .ri%ileged 1o&&unications and 1onfidentialit: 311CO-- 7t#er .ri%ileges 311CE407 E 3anE and 1usto&erG 3anE Records /For&erl: 220E14604

5ost 1ited 1ases

-ndi%iduals >#o >ere na&ed eit#er as pa:ees on c#ecEs >ritten 9: 9anE custo&ers or as dra>ers on c#ecEs pa:a9le to 9anE custo&ers and 9anE custo&ers could assert no proprietar: interest or 9anE depositor pri%ilege in 9anE?s records reflecting deposits to custo&ers? accounts and cancelled c#ecEs dra>n on accountsG t#us, suc# indi%iduals and custo&ers could not inter%ene in proceeding to enforce su&&ons issued 9: -nternal Re%enue (er%ice and seeEing suc# records fro& 9anE 26 , ( 1 A /- R 1 1!044 22 7402/94, 7602, 7603, 7604/a4G Fed Rules 1i% .roc rule 24/a4/24, 2= , ( 1 A , ( +ept of 6ustice % Reporters 1o&&ittee For Freedo& of .ress, 4=! , ( 74!, 772, 10! ( 1t 146=, 103 L *d 2d 774 't#e 9asic purpose of t#e Freedo& of -nfor&ation Act Wto open agenc: action to t#e lig#t of pu9lic scrutin: L ) Department o) Air *orce v Rose! 420 , ( , at 372, !6 ( 1t , at 1604, And t#e court stated at p 772, <ron&an, 8#e .ri%ac: *xe&ption to t#e Freedo& of -nfor&ation Act, ! 6 Legal (tudies 727, 733 /1!=04 /'8#e act?s first and &ost o9%ious goal /reflected in its 9asic disclosure require&ents4 is to pro&ote #onest: and reduce >aste in go%ern&ent 9: exposing official conduct to pu9lic scrutin:)4G And t#e court stated at p 773, 8#is 9asic polic: of ' Wfull agenc: disclosure unless infor&ation is exe&pted under clearl: delineated statutor: language,L ) Department o) Air *orce v Rose! 420 , ( , at 360@361, !6 ( 1t , at 10!! /quoting ( Rep Bo =13, =!t# 1ong , 1st (ess , 3 /1!6044, indeed focuses on t#e citi;ens? rig#t to 9e infor&ed a9out '>#at t#eir go%ern&ent is up to ) 7fficial infor&ation t#at CC#&B$ s#eds lig#t on an agenc:?s perfor&ance of its statutor: duties falls squarel: >it#in t#at statutor: purpose And t#e court stated at p 774, **t#e F7-A?s central purpose is to ensure t#at t#e 'overnment$s acti%ities 9e opened to t#e s#arp e:e of pu9lic scrutin: And t#e court stated at p 770, **>e note t#at **1ongress #as pro%ided t#at t#e standard fees for production of docu&ents under t#e F7-A s#all 9e >ai%ed or reduced 'if disclosure of t#e infor&ation is

in t#e pu9lic interest 9ecause it is liEel: to contri9ute significantl: to pu9lic understanding of t#e operations or acti%ities of t#e go%ern&ent and is not pri&aril: in t#e co&&ercial interest of t#e requester ) 0 , ( 1 2 002/a4/44/A4/iii4 /1!=2 ed , (upp O4 Alt#oug# suc# a pro%ision o9%iousl: i&plies t#at t#ere >ill 9e requests t#at do not &eet suc# a 'pu9lic interest) standard, >e t#inE it rele%ant to toda:?s inquir: regarding t#e pu9lic interest in release of rap s#eets on pri%ate citi;ens t#at **1ongress once again expressed t#e core purpose of t#e F7-A as 'contri9utRingS significantl: to pu9lic understanding o) the operations or activities o) the government ) 17 La#r % Bational 8ransp (afet: 3d ,nited (tates 1ourt of Appeals, Bint# 1ircuit 6une 22, 200! 06! F 3d !64 7nce go%ern&ent #as identified cogni;a9le pri%ac: interest soug#t to 9e protected under Freedo& of -nfor&ation ActLs /F7-A4 la> enforce&entIpri%ac: exe&ption, onl: rele%ant pu9lic interest in F7-A 9alancing anal:sis is **extent to >#ic# disclosure of infor&ation soug#t >ould s#ed lig#t on agenc:Ls perfor&ance of its statutor: duties or ot#er>ise let citi;ens Eno> >#at t#eir go%ern&ent is up to 0 , ( 1 A 2002/94/74 /14

**$il&ore % , ( +ept of *nerg:, 4 F (upp 2d !12

R1ited 0 ti&es for t#is legal issueS

B + 1al ,1!!= 3asic purpose of Freedo& of -nfor&ation Act /F7-A4 is to ensure an infor&ed citi;enr:, %ital to t#e functioning of a de&ocratic societ:, needed to c#ecE against corruption and to #old t#e go%ernors accounta9le to t#e go%erned 0 , ( 1 A 2 002 B L R 3 % Ro99ins 8ire K Ru99er 1o , 437 , ( 214, 242, != ( 1t 2311, 07 L *d 2d 10! 8#e ,nited (tates +istrict 1ourt for t#e Bort#ern +istrict of Ala9a&a, ordered t#e Bational La9or Relations 3oard to turn o%er to e&plo:er copies of all >ritten state&ents of >itnesses to 9e called in unfair la9or practice proceeding, and t#e 3oard appealed 8#e 1ourt of Appeals, 063 F 2d 724, affir&ed, and certiorari >as granted 8#e (upre&e 1ourt, 5r 6ustice 5ars#all, #eld t#at release of state&ents of >itnesses >#o& Bational La9or Relations 3oard intends to call at #earing on unfair la9or practice co&plaint necessaril: '>ould interfere) >it# t#e 3oard?s 'enforce&ent proceedings) and t#us 3oard is not required to disclose suc# state&ents prior to #earing 6udg&ent of 1ourt of Appeals re%ersed 5r 6ustice (te%ens filed a concurring opinion in >#ic# 5r 1#ief 6ustice 3urger and 5r 6ustice Re#nquist Aoined 5r 6ustice .o>ell filed an opinion concurring in part and dissenting in part in >#ic# 5r 6ustice 3rennan Aoined 5=6 R*+ord, %$A ="

326 Records 326-- .u9lic Access 326--/34 $eneral (tatutor: +isclosure Require&ents 326E00 E -n $eneralG Freedo& of -nfor&ation La>s in $eneral 5ost 1ited 1ases /For&erl: 326E144

**3asic purpose of t#e Freedo& of -nfor&ation Act is to ensure an infor&ed citi;enr:, %ital to functioning of a de&ocratic societ:, needed to c#ecE against corruption and to #old t#e go%ernors accounta9le to t#e go%ernedG t#e Act >as not intended to function as a pri%ate disco%er: tool 0 , ( 1 A 2 002 **R0S 8#e 9asic purpose of F7-A is to ensure an infor&ed citi;enr:, %ital to t#e functioning of a de&ocratic societ:, needed to c#ecE against corruption and to #old t#e go%ernors accounta9le to t#e go%erned 1!74 (ource 3ooE 3=G see also +,RB v Sears! Roebuck - Co ! 421 , ( , at 102, !0 ( 1t , at 1017