Are a Litigant's Income Tax Returns Fair Game in Pretrial Discovery in Civil Cases?
Depending upon the claims and defenses raised in the context of a particular civil lawsuit, the information contained in a partyās business or personal income tax return may be a relevant area of inquiry for pretrial discovery. However, most taxpayers will not voluntarily surrender their tax returns simply because the information is being sought by the other sideās lawyer. To the contrary, a demand for production of income tax returns is often met with resistance. Thus, before seeking the production of an adversary litigantās income tax returns as part of pretrial discovery demands, careful thought must be given as to why the information is needed, what it may help prove, and whether there is sufficient reasons or āgood causeā to be demanding it? The scope of discovery in New Jersey civil litigation matters is dictated by R. 4:10-2, which allows for the ādiscovery of any matter, not privileged, which is relevant to the subject matter involved in the pending ac...