Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_18-cv-00025/USCOURTS-casd-3_18-cv-00025-0/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:7604(a) IRS: Complaint to Enforce IRS Summons

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Petitioner,

v.

ERNEST CUNAMAY, 

 

Respondent.

 

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Case No. 18cv0025 BTM

ORDER GRANTING PETITION

TO ENFORCE INTERNAL

REVENUE SERVICE SUMMONS

The Government has petitioned the Court for an order enforcing the Internal 

Revenue Service (“IRS”) Summons issued to Ernest Cunamay (“Respondent”). On 

January 20, 2018, the Court issued an order setting a hearing on the petition to 

enforce. On February 14, 2018, on the IRS’s third attempt to personally serve 

Respondent, the IRS went to Respondent’s last known address and asked a man who 

identified himself as Respondent’s bother, Phil Penales, whether Respondent was 

home. Mr. Penales said that Respondent was home. When the IRS Revenue Officer 

knocked on the door, Respondent did not answer. Mr. Penales agreed to take the 

envelope containing a copy of the Court’s order, the Government’s petition to 

enforce and supporting declaration and he placed it inside Respondent’s residence. 

Respondent did not file a written response to the order. 

The hearing was held on the Government’s petition on March 2, 2018, at 2:00 

p.m. The Government was represented by Assistant United States Attorney Leslie 

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M. Gardner. Respondent did not appear. For the reasons explained herein, the 

Government’s petition to enforce the summons is granted.

BACKGROUND

On May 19, 2017, Nelli Ayrapetyan, a Revenue Officer employed by the IRS, 

issued an IRS summons to Respondent. [Declaration of Revenue Officer Nelli 

Ayrapetyan in Support of Petition, (“Ayrapetyan Decl.”), ¶ 4.] The IRS is 

conducting an investigation to determine Respondent’s ability to pay his tax 

liabilities for the 2005, 2006, 2007, 2009, and 2010 tax years. [Id. at ¶ 2.] On May 

19, 2017, Revenue Officer Ayrapetyan served the summons on Respondent by

leaving an attested copy of the summons at his last and usual place of abode. [Id. at 

¶ 5.] The summons called for Respondent to appear before the IRS on June 20, 

2017, at 9:00 a.m. [Id. at ¶ 6.] 

On June 20, 2017, Respondent did not appear and did not provide any of the 

summonsed information. [Id.] The Office of Division Counsel of the IRS and the 

U.S. Attorney’s office subsequently sent a letter to Respondent directing him to 

appear before the IRS. [Id. at ¶¶ 7, 9.] Respondent did not appear and did not 

provide the IRS with the testimony and documents requested by the summons. [Id.

at ¶¶ 8, 10.]

On January 1, 2018, the Government petitioned the Court to enforce the 

summons. On January 22, 2018, the Court ordered that Respondent appear before 

the Court on March 2, 2018 at 2:00 p.m. The Court also ordered Respondent to 

respond with any defense or opposition to the petition at least 14 days prior to the 

hearing date. Respondent did not file a written response and did not appear at the 

hearing.

DISCUSSION

Pursuant to 26 U.S.C. § 7602(a)(1), the Secretary of the Treasury may 

“examine any books, papers, records, or other data which may be relevant or

material” in connection with “ascertaining the correctness of any return, making a 

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return where none has been made, determining the liability of any person for any 

internal revenue . . . or collecting any such liability.” Section 7602(a)(1) authorizes 

the Secretary to issue summonses to compel persons in possession of such books, 

papers, records, or other data to appear and produce the same and/or give testimony.

In order to obtain judicial enforcement of an IRS summons, the United States 

“must first establish its ‘good faith’ by showing that the summons: (1) is issued for a 

legitimate purpose; (2) seeks information relevant to that purpose; (3) seeks 

information that is not already within the IRS’ possession; and (4) satisfies all 

administrative steps required by the United States Code.” Fortney v. United States, 

59 F.3d 117, 119 (9th Cir. 1995) (citing United States v. Powell, 379 U.S. 48, 57-58 

(1964)). “The government’s burden is a ‘slight one’ and typically is satisfied by the 

introduction of the sworn declaration of the revenue agent who issued the summons 

that Powell requirements have been met.” Id. at 120. Once the government has 

made a prima facie showing that enforcement of the summons is appropriate, the 

burden shifts to the Respondent to show that enforcement of the summons would be 

an abuse of the court’s process. Powell, 379 U.S. at 58. The Supreme Court has 

characterized respondent’s burden as a heavy one. Id.

The Government’s petition and Revenue Officer Ayrapetyan’s supporting 

declaration satisfy all four elements of the Powell standard. First, the IRS is 

conducting an investigation to determine the collectability of Respondent’s tax 

liabilities for the 2005, 2006, 2007, 2009, and 2010 tax years. [Ayrapetyan Decl., ¶ 

2.] Such an investigation is expressly authorized by 26 U.S.C. § 7602(a). The 

Internal Revenue Code explicitly allows the issuance of a summons for the purpose 

of determining “the liability of any person for any internal revenue tax . . . or 

collecting any such liability . . .” 26 U.S.C. § 7602(a). Thus, the summons was 

issued for a legitimate purpose. Second, Revenue Officer Ayrapetyan has declared 

in her declaration that the information requested by the summons may be relevant to 

determine the collectability of Respondent’s tax liabilities. [Id. at ¶ 14.] Third, the 

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IRS does not already possess the testimony, papers, records, and other data sought 

by the summons issued to Respondent. [Id. ¶ 12.] Finally, the IRS has followed and 

exhausted all required administrative steps, but Respondent has not complied with 

the summons. [Id. at ¶ 13.] Thus, the Government has made prima facie showing 

that it is entitled to judicial enforcement of the summons.

CONCLUSION

For the reasons set forth herein, the Government’s petition to enforce the IRS 

summons is GRANTED. Respondent, Ernest Cunamay, is directed to appear before 

IRS Revenue Officer Nelli Ayrapetyan or a designee, on April 19, 2018, at 10:00 

a.m., at the offices of the Internal Revenue Service located at 333 W. Broadway, 

Suite 906, San Diego, California, 92101, and to produce the documents and give 

testimony as directed in the summons. The Government shall serve a copy of this 

Order upon Respondent in accordance with Fed. R. Civ. P. 5, within 7 days of the 

date that this Order is served upon counsel for the Government, or as soon thereafter 

as possible. Proof of service shall be filed with the Clerk of Court as soon as 

practicable. 

Respondent is hereby notified that failure to comply with this Order may 

subject him to sanctions for contempt of court.

IT IS SO ORDERED.

DATED: April 9, 2018

 

BARRY TED MOSKOWITZ, Chief Judge

United States District Court

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