## Facts

- A foreign national living outside the United States filed a petition in the United States Tax Court challenging an IRS determination.
- Before the court reached the merits, the taxpayer moved to proceed under a pseudonym and to seal portions of the record to prevent public disclosure of identity and financial information.
- The taxpayer submitted affidavits and related evidence describing a serious kidnapping problem in the taxpayer’s home country, including the kidnapping and ransom of a close relative.
- The taxpayer asserted that public access to the docket and filings would heighten the risk of kidnapping, extortion, or retaliation against the taxpayer and certain family members.
- The taxpayer did not seek to withhold identity or financial information from the Commissioner; the request targeted public access to identifying information.
- The Commissioner opposed the motion, emphasizing the strong presumption of open Tax Court proceedings and arguing that some information was allegedly public from other litigation.

## Issues

1. Whether the Tax Court may permit a taxpayer to litigate under a pseudonym despite the general rule of public proceedings and public case captions.
2. Whether the Tax Court may seal all or part of the record to protect a taxpayer’s identity and financial information, and what standard governs that relief.
3. How to balance the public interest in access to judicial proceedings against a taxpayer’s demonstrated risk of serious physical harm.

## Decision

- The Tax Court granted the taxpayer’s motion to proceed anonymously.
- The Tax Court ordered sealing of only those portions of the record necessary to protect the taxpayer’s identity and safety, rather than sealing the entire record.
- The court concluded that the taxpayer showed good cause for protective measures due to a credible, particularized risk of kidnapping and related physical harm.
- The court preserved the Commissioner’s access to the taxpayer’s identity and financial information for litigation purposes while limiting public disclosure.

## Legal Principles

- Tax Court proceedings and evidence are generally open to public inspection, but the court may enter protective orders and limit disclosure when authorized by statute and when justice so requires.
- A litigant may be permitted to proceed under a pseudonym upon a strong showing that disclosure creates a concrete risk of serious physical harm, not merely generalized privacy concerns.
- Requests to seal records or allow pseudonymous litigation require balancing the public interest in transparency against the litigant’s safety interests.
- Any restriction on public access should be narrowly tailored to protect against the identified harm while maintaining public access to the greatest extent consistent with safety and fairness.

## Conclusion

The Tax Court held that, despite the strong presumption of public access, it may allow pseudonymous litigation and seal limited record materials when a taxpayer presents specific, credible evidence that public disclosure of identity and financial information would create a serious risk of kidnapping or similar physical harm, and when the relief is narrowly tailored to protect safety without impairing the Commissioner’s ability to litigate the case.


Anonymous v. Comm’r, 127 T.C. 89 (T.C. 2006)