Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

United States v. Knutson

United States District Court, E.D. California

November 15, 2017

UNITED STATES OF AMERICA, Petitioner,
v.
JON KNUTSON, Respondent.

          FINDINGS AND RECOMMENDATIONS RECOMMENDING THAT PETITION TO ENFORCE IRS SUMMONS BE GRANTED (ECF NO. 1) OBJECTIONS DUE WITHIN FOURTEEN DAYS

         Currently before the Court is Petitioner United States of America's petition to enforce an Internal Revenue Service (“IRS”) summons, which was filed on September 12, 2017. (ECF No. 1.) For the reasons set forth below, the Court recommends that Petitioner's petition to enforce the IRS summons be granted. The Court held a hearing on November 15, 2017. Petitioner's counsel Bobbie Montoya appeared with Internal Revenue Service (“IRS”) Revenue Officer Michael J. Papasergia (“Revenue Officer Papasergia”). Respondent did not appear.

         I. BACKGROUND

         The petition alleges that Revenue Officer Papasergia is conducting an investigation of Respondent Jon Knutson sole member, Golden Valley Supportive Services (“Respondent”) to secure the following information to collect tax liability for (a) Form 940 for the calendar periods ending December 31, 2006; December 31, 2007; December 31, 2008; and December 31, 2009; and (b) Form 941 for the quarterly periods ending September 30, 2006; December 31, 2006; March 31, 2007; June 30, 2007; September 30, 2007; December 31, 2007; March 31, 2008; June 30, 2008; September 30, 2008; December 31, 2008; March 31, 2009; June 30, 2009; September 30, 2009; December 31, 2009; March 31, 2010; and September 30, 2016.

         On March 20, 2017, Revenue Officer Papasergia issued an IRS summons directing Respondent to testify and produce certain documents related to the investigation on April 20, 2017, at 4825 Coffee Road, Bakersfield, California. On March 21, 2017, Revenue Officer Papasergia left an attested copy of the summons at the last and usual place of abode for Respondent, 11303 Clarion River Drive, Bakersfield, California by leaving a sealed envelope securely taped to the front door.[1] Respondent did not appear on April 20, 2017, or otherwise respond to the summons.

         On September 12, 2017, the instant petition was filed to enforce the IRS summons. On September 14, 2017, an order issued requiring Respondent to show cause why he should not be compelled to obey the IRS summons issued. On October 12, 2017, a certificate of service was filed showing that Respondent was personally served on October 4, 2017. On October 12, 2017, a copy of the points and authorities filed on September 14, 2017 and the order to show cause issued September 14, 2017 were mailed to Respondent at 11303 Clarion River Drive, Bakersfield, CA 93311.[2] Respondent has not responded to the September 14, 2017 order.

         II. LEGAL STANDARDS

         Pursuant to 26 U.S.C. § 7602, the IRS has the authority to issue summonses to investigate tax returns, tax liabilities, and the collection of any tax liabilities. Enforcement of IRS summonses is governed by 26 U.S.C. § 7604, which states, in pertinent part:

Whenever any person summoned under section 6420(e)(2), 6421(g)(2), 6427(j)(2), or 7602 neglects or refuses to obey such summons, or to produce books, papers, records, or other data, or to give testimony, as required, the Secretary may apply to the judge of the district court or to a United States commissioner for the district within which the person so summoned resides or is found for an attachment against him as for a contempt. It shall be the duty of the judge or commissioner to hear the application, and, if satisfactory proof is made, to issue an attachment, directed to some proper officer, for the arrest of such person, and upon his being brought before him to proceed to a hearing of the case; and upon such hearing the judge or the United States commissioner shall have power to make such order as he shall deem proper, not inconsistent with the law for the punishment of contempts, to enforce obedience to the requirements of the summons and to punish such person for his default or disobedience.

26 U.S.C. 7604(b). Jurisdiction of this Court to enforce summonses is provided under 26 U.S.C. § 7402(b).

In issuing an IRS summons:
...the [government] need not meet any standard of probable cause to obtain enforcement of his summons, either before or after the three-year statute of limitations on ordinary tax liabilities has expired. He must show that the investigation will be conducted pursuant to a legitimate purpose, that the inquiry may be relevant to the purpose, that the information sought is not already within the Commissioner's possession, and that the administrative steps required by the Code have been followed....

U.S. v. Powell, 379 U.S. 48, 57-58 (1964). “The government's burden is a slight one, and may be satisfied by a declaration from the investigating agent that the Powell requirements have been met.” U.S. v. Dynavac, Inc., 6 F.3d 1407, 1414 (9th Cir. 1993) (citing U.S. v. Abrahams, 905 F.2d 1276, 1280 (9th Cir. 1990); Liberty Financial Servs. v. U.S., 778 F.2d 1390, 1392 (9th Cir. 1985)). “Once the prima facie case is made, a ‘heavy' burden falls upon the taxpayer to show an abuse of process ... or lack of institutional good faith.” Id. “The burden [on the government] is minimal ‘because the statute must be read broadly in order to ensure that the enforcement powers of the IRS are not unduly restricted.'” Crystal v. U.S., 172 F.3d 1141, 1144 (9th Cir. 1999) (quoting Liberty Fin. Servs., 778 F.2d at 1392).

         III. DISCUSSION

         In this instance, Revenue Officer Papasergia has submitted a declaration stating that the purpose of the investigation is for collection information for federal income tax for (a) Form 940 for the calendar periods ending December 31, 2006; December 31, 2007; December 31, 2008; and December 31, 2009; and (b) Form 941 for the quarterly periods ending September 30, 2006; December 31, 2006; March 31, 2007; June 30, 2007; September 30, 2007; December 31, 2007; March 31, 2008; June 30, 2008; September 30, 2008; December 31, 2008; March 31, 2009; June 30, 2009; September 30, 2009; December 31, 2009; March 31, 2010; and September 30, 2016.. The material sought is not already in the possession of the IRS and is necessary to secure collection information for federal income tax for the (a) Form 940 for the calendar periods ending December 31, 2006; December 31, 2007; December 31, 2008; and December 31, 2009; and (b) Form 941 for the quarterly periods ending September 30, 2006; December ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.