Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-02176/USCOURTS-caed-2_05-cv-02176-6/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:7401 IRS: Tax Liability

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28 STIPULATION -1- 2212130.1 

McGREGOR W. SCOTT

United States Attorney

PAUL S. HAM

Trial Attorney, Tax Division

United States Department of Justice

P.O. Box 683, Ben Franklin Station

Washington, DC 20044-0683

Telephone: (202) 307-6421

Facsimile: (202) 307-0054

Attorneys for the United States of America

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA

Plaintiff,

v.

MICHAEL CAREY, et al.,

Defendants.

 

Civil No. 2:05-cv-02176-MCE-CMK 

STIPULATION BETWEEN THE

UNITED STATES AND THE STATE OF

CALIFORNIA FRANCHISE TAX

BOARD, and ORDER

Plaintiff United States of America and defendant State of California Franchise Tax Board

(“FTB”), through their respective attorneys, hereby agree and stipulate as follows:

1. The United States has made assessments against defendants Michael and Leone Carey for

their outstanding federal income (Form 1040), plus penalties and interest, for 1995 through 2000 (“tax

years at issue”). The FTB has made assessments against Careys for their outstanding state income taxes,

plus penalties and interest, for certain years within the tax periods at issue. 

2. The United States’ and FTB’s tax liens, both arising from the assessments described in

paragraph 1, above, attach to parcels of real property which are particularly described as follows:

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Case 2:05-cv-02176-MCE-CMK Document 83 Filed 02/14/07 Page 1 of 4
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28 STIPULATION -2- 2212130.1 

A. The Palo Cedro Property

Parcel A as shown on the map entitled “Parcel Map No. 26-73 in the unincorporated

territory of Shasta County California. A portion of the N.W. 1/4 of the N.W. 1/4 of

Section 4 Township 31 North, Range 3 West, M.D.B. & M., FOR ROBERT SILVA”

recorded in the office of the County Recorder August 16, 1972 in Book 1 of Parcel Maps

at page 110, Shasta County Records. Together with a non-exclusive easement for road

and utility purposes over, under and across a strip of land 30.00 feet in width, lying

Southerly of and adjoining the South line of said Parcel A. Said easement is for the

benefit of and appurtenant to said Parcel A or any parts or portions thereof.

B. The Redding Property

A portion of the NW of 1/4 of Section 8, Township 31 North, Range 4 West, M.D.M.

Commencing at the Section corner common to Sections 5, 6, 7, & 8, Township 31 North,

Range 4 West, M.D.M., thence South 89 Degrees 18' East, 1340.09 feet; thence South 0

Degrees 41' 16" East, 223.85 feet to the true point of beginning of this description; thence,

continuing from said point of beginning South 0 Degrees 41' 16" East 90.00 feet to a point

from whence an iron pin witness corner bears South 89 Degrees 21' East 20.00 feet, thence

South 89 Degrees 21' East, 134.53 feet; thence 0 Degrees 41' 16" West 90.00 feet; thence

North 89 Degrees 21' West 134.53 feet to the point of beginning.

All iron pins referred to are marked R.E. 5438.

C. The Bella Vista Property

All that portion of the North one-half of the Southwest one-quarter of Section 35,

Township 33 North, Range 3 West, M.D.B. & M., lying North of the California State

Highway No. 299E.

Excepting therefrom all that portion conveyed in the deed to Kenneth E. Spencer and Ruth

Melba Spencer, husband and wife, recorded March 16, 1970 in Book 1022 of Official

Records, Page 270, Shasta County Records.

Also excepting therefrom “All mineral lands except coal or iron lands” as excepted in the

patent from the United States of America, recorded April 7, 1896 in Book 5 of patents,

page 275, Shasta County Records.

Also excepting therefrom one-third of all minerals or other hydrocarbon substances in said

above described property with the right to enter upon said land and remove the same as

reserved in the deed recorded April 28, 1960 in book 633 official records at page 292,

Shasta County Records.

3. The United States and the FTB agree that their relative priorities with respect to their tax

liens for the tax periods at issue, which are determined by assessment dates, attach to the Palo Cedro,

Redding, and Bella Vista Properties as follows:

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28 STIPULATION -3- 2212130.1 

Lien Holder Tax Year Assessment Date Assessed Amount

United States 1995 07/01/1996 &

08/26/2002

$413,990.74

United States 1996 09/08/1997 &

10/30/2000

$708,494.97

United States 1997 12/7/1998 $2,922.05

United States 1998 11/29/1999 &

04/10/2000

$3,397.95

United States 1999 11/27/2000 $8,715.98

United States 2000 11/26/2001 $1,571.17

FTB 1995 01/13/2003 $125,960.50

United States 1998, 1999, & 2000 09/01/2003 $4,325,872.27

FTB 1998, 1999, & 2000 01/13/2004 $1,206,711.53

United States 1997 05/04/2004 $1,025,150.22

The amounts listed as being owed to the FTB are as of October 31, 2006, inclusive of penalties and

interest. The amounts listed as being owed to the United States are as of November 18, 2004, plus any

unassessed interest and other applicable statutory additions as provided by law. 

4. Therefore, the United States and the FTB agree that the proceeds generated from any

judicial or voluntary sale of the subject properties as related to this action, shall be distributed between

the United States and the FTB in the relative order of priority of their tax liens as described in paragraph

3, above. 

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28 STIPULATION -4- 2212130.1 

5. The United States and the FTB are to bear their respective costs, including any possible

attorney's fees or other expenses of this litigation. The FTB is hereby dismissed from this action. 

Dated this 9 day of February, 2007. th

MCGREGOR W. SCOTT

United States Attorney

 /s/ - Paul Ham 

PAUL S. HAM

Trial Attorney, Tax Division

U.S. Department of Justice

Post Office Box 683, Ben Franklin Station

Washington, D.C. 20044

Telephone: (202) 307-6421

Facsimile: (202) 307-0054

(Attorneys for the United States)

Dated this 8 day of February, 2007. th

EDMUND G. BROWN JR.

Attorney General of the State of California

 /s/ - Molly Mosley 

MOLLY K. MOSLEY

Deputy Attorney General

1300 I Street, Suite 125

P.O. Box 944255

Sacramento, CA 94244-2550

Telephone: (916) 445-5367

Facsimile: (916) 327-2247

(Attorneys for the State of California, 

Franchise Tax Board)

IT IS SO ORDERED.

Dated: February 13, 2007

________________________________

MORRISON C. ENGLAND, JR.

UNITED STATES DISTRICT JUDGE

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