Narrative:

While on IFR flight sbound at 5000 ft in and out of clouds, ATC reported northbound (non radar contact) (presumed VFR) traffic encoder reading out 4500 ft (proper altitude for VFR and direction of flight). First reported about 5 mi, subsequently reported nearer. Traffic sighted perhaps 1/2-3/4 mi at 12 O'clock. Appeared at or slightly above our altitude. I made sharp left (east) turn, descent. Traffic passed above and to right (west). I believe VFR pilots need to ascertain (verify) transponder readout. There may have been some visual illusion in determining altitude of approaching aircraft due to lack of horizon.

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Original NASA ASRS Text

Title: CESSNA 182 IFR, FLYING IN AND OUT OF CLOUDS, HAS NMAC WITH ANOTHER ACFT.

Narrative: WHILE ON IFR FLT SBOUND AT 5000 FT IN AND OUT OF CLOUDS, ATC RPTED NBOUND (NON RADAR CONTACT) (PRESUMED VFR) TFC ENCODER READING OUT 4500 FT (PROPER ALT FOR VFR AND DIRECTION OF FLT). FIRST RPTED ABOUT 5 MI, SUBSEQUENTLY RPTED NEARER. TFC SIGHTED PERHAPS 1/2-3/4 MI AT 12 O'CLOCK. APPEARED AT OR SLIGHTLY ABOVE OUR ALT. I MADE SHARP L (E) TURN, DSCNT. TFC PASSED ABOVE AND TO R (W). I BELIEVE VFR PLTS NEED TO ASCERTAIN (VERIFY) XPONDER READOUT. THERE MAY HAVE BEEN SOME VISUAL ILLUSION IN DETERMINING ALT OF APCHING ACFT DUE TO LACK OF HORIZON.

Data retrieved from NASA's ASRS site as of July 2007 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.