United States District Court, E.D. California
MICHAEL A. PAPPACE
FINDINGS AND RECOMMENDATIONS AND ORDER RE: I.R.S.
BARBARA A. McAULIFFE UNITED STATES MAGISTRATE JUDGE
matter came on before Magistrate Judge Barbara A. McAuliffe
on June 16, 2017, under the Order to Show Cause issued March
29, 2017. ECF 4. The order, with the verified petition filed
March 21, 2017, ECF 1, and its supporting memorandum, ECF 3-1
were personally served on Respondent on May 16, 2017. ECF 5.
Respondent did not file opposition or non-opposition to the
verified petition as provided for in the Order to Show Cause.
At the hearing, Bobbie J. Montoya, Assistant United States
Attorney, personally appeared for Petitioner, and
investigating Revenue Officer Lisa R. Lopez (formerly known
as Lisa R. Cumiford) also was present in the courtroom.
Respondent Michael A. Pappace personally appeared at the
Verified Petition to Enforce IRS Summons initiating this
proceeding seeks to enforce an administrative summons issued
July 21, 2016. See Exhibit A to the Petition, ECF
1-2. The summons is part of an investigation of the
respondent to secure information needed to collect the tax
liability for Form 1040 for the calendar periods ending
December 31, 2005, December 31, 2006, December 31, 2007,
December 31, 2008, December 31, 2009, December 31, 2010,
December 31, 2011, and December 31, 2012.
matter jurisdiction is invoked under 28 U.S.C. §§
1340 and 1345, and is found to be proper. Internal Revenue
Code §§ 7402(b) and 7604(a) (26 U.S.C.) authorize
the government to bring the action. The Order to Show Cause
shifted to respondent the burden of rebutting any of the four
requirements of United States v. Powell, 379 U.S.
48, 57-58 (1964).
Court has reviewed the petition and documents in support.
Based on the uncontroverted petition verified by Revenue
Officer Lisa R. Lopez and the entire record, the Court makes
the following findings:
(1) The summons (Exhibit A to the Petition, ECF 1-2) issued
by Revenue Officer Lisa R. Lopez on July 21, 2016 and served
upon Respondent on July 21, 2016, seeking testimony and
production of documents and records in Respondent's
possession, was issued in good faith and for a legitimate
purpose under I.R.C. § 7602, that is, to secure
information needed collect the tax liability for Form 1040
for the calendar periods ending December 31, 2005, December
31, 2006, December 31, 2007, December 31, 2008, December 31,
2009, December 31, 2010, December 31, 2011, and December 31,
(2) The information sought is relevant to that purpose.
(3) The information sought is not already in the possession
of the Internal Revenue Service.
(4) The administrative steps required by the Internal Revenue
Code have been followed.
(5) There is no evidence of referral of this case by the
Internal Revenue Service to the Department of Justice for
(6) The verified petition and its exhibits made a prima
facie showing of satisfaction of the requirements of
United States v. Powell, 379 U.S. 48, 57-58 (1964).
(7) The burden shifted to respondent, Michael A. Pappace, to
rebut that pri ...