In Siri v. Cutter Home Winery, Inc., the Court held that the implied taxpayer privilege did not preclude an employee from speaking up when she discovers that her employer is filing incorrect returns, nor does it preclude a wrongful termination claim if the employee is discharged for doing so.  The plaintiff brought to the attention of defendant’s management and the Board of Equalization defendant’s failure to have paid use taxes owed by the company.  She complained that as a result of her report, she was fired in violation of Labor Code section 1102.5 and public policy.   Defendant asserted the tax-payer privilege and refused to turn over the taxes.  The trial court dismissed the case, saying that the plaintiff could not prove the fraud without the returns, and defendant was not required to provide the returns.  The Court of Appeal held that the parties and trial court had confused the issues.  Plaintiff was not required to prove she was actually correct about her report, i.e., that the returns were fraudulent. She had to provide she had a reasonable basis to make a report and then she was retaliated against for the report, which she could prove without the actual returns.  Thus, summary judgment was improper and plaintiff could proceed with her case.

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