Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_18-cv-01318/USCOURTS-caed-1_18-cv-01318-4/pdf.json

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

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RICHARD E. ZUCKERMAN

Principal Deputy Assistant Attorney General

JONATHAN M. HAUCK

Trial Attorney, Tax Division

U.S. Department of Justice

P.O. Box 683, Ben Franklin Station

Washington, D.C. 20044

202-616-3173 (v)

202-307-0054 (f)

E-mail: jonathan.m.hauck@usdoj.gov

Western.taxcivil@usdoj.gov

Attorneys for the United States of America

IN THE UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, )

)

Plaintiff, )

)

v. )

)

PAUL D. WELDON, )

STATE OF CALIFORNIA FRANCHISE )

TAX BOARD, )

THE COUNTY OF FRESNO, AND )

THE CITY OF FRESNO )

)

Defendants. )

_______________________________________)

Case No. 1:18-cv-01318-AWI-SKO

STIPULATION TO PRIORITY 

BETWEEN UNITED STATES AND 

THE STATE OF CALIFORNIA 

FRANCHISE TAX BOARD AND 

PROPOSED ORDER

Pursuant to L.R. 137 and L.R. 143, Plaintiff, the United States of America, and defendant 

the State of California Franchise Tax Board (FTB) agree as follows:

1. This Stipulation concerns the real property described in paragraph 8 of the United 

States’ Complaint in this case. (ECF No. 1) The real property is known as the “Subject 

Property.” The Subject Property is located within Fresno County.

Case 1:18-cv-01318-JLT-SKO Document 49 Filed 02/21/20 Page 1 of 5
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2. Both the United States and the FTB have an interest in the Subject Property by 

virtue of recorded liens which encumber the Subject Property. In the event the Subject Property 

is sold, the United States and the FTB agree that proceeds of sale shall be applied to satisfy any 

property taxes on the Subject Property, which is due and payable, before being applied to satisfy 

any taxes owed to the United States or the FTB.

3. After the property taxes on the Subject Property are satisfied, the United States 

and FTB agree that the funds will then be applied to Mr. Weldon’s outstanding income tax 

liabilities as follows: first, to the FTB for Mr. Weldon’s total outstanding income liabilities for 

tax years 2000 and 2003; second, to the United States for Mr. Weldon’s total outstanding income 

tax liabilities for tax years 2000, 2002, 2003, 2004, 2005, 2006, and 2007; third to the FTB for 

Mr. Weldon’s total outstanding income liabilities for tax years 2007, 2008, 2009, and 2010; 

fourth, to the United States for Mr. Weldon’s total outstanding income tax liability for tax year 

2008; fifth, to the FTB for Mr. Weldon’s total outstanding income liabilities for tax years 2011 

and 2012; sixth, to the United States for Mr. Weldon’s total outstanding income tax liabilities for 

tax years 2010, 2012, and 2013; and finally, if any amounts are left over after payment of all 

other liability and/or lienholders, the remaining funds from the sale will be sent to the FTB for 

Mr. Weldon’s total outstanding income tax liability for tax years 2004, 2005, and 2006. The 

parties agree to exchange current payoff information for each tax year at issue upon the sale of

the Subject Property in order to file a joint proposed order of distribution.

4. The parties agree to bear their own costs and fees.

5. The FTB received a copy of the United States’ Complaint, waived the service of 

summons (ECF No. 14), and agrees that this Court has jurisdiction over the res of the Subject 

Property.

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6. Except as stated herein, the FTB consents to judgment as requested in the United 

States’ Complaint.

7. The FTB was named as a defendant in this action under 26 U.S.C. § 7403(b). The 

United States claims no monetary relief against the FTB in this action. Unless otherwise ordered 

by the Court, the FTB is excused from further participation in this case until such time as a 

proposed order of distribution may be filed. The FTB agrees to be bound by the judgment in this 

case, which shall incorporate the terms of this stipulation.

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8. The United States and the FTB jointly request that the Court approve this 

stipulation.

DATED this 21st day of February, 2020.

Respectfully submitted,

RICHARD E. ZUCKERMAN

Principal Deputy Assistant Attorney General

/s/ Jonathan Hauck

JONATHAN M. HAUCK

Trial Attorney, Tax Division

U.S. Department of Justice

P.O. Box 683

Washington, D.C. 20044

202-616-3173 (v)

202-307-0054 (f)

Jonathan.m.hauck@usdoj.gov

Attorneys for the United States of America

Xavier Becerra

Attorney General of California

Molly K. Mosley

Supervising Deputy Attorney General

/s/Craig D. Rust

Craig D. Rust

Deputy Attorney General

(As authorized on February 21, 2020) 

1300 I Street, P.O. Box 944255

Sacramento, CA 94244-2550

Attorneys for the State of California 

Franchise Tax Board

IT IS SO ORDERED.

Dated: February 21, 2020 

 SENIOR DISTRICT JUDGE

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CERTIFICATE OF SERVICE

I hereby certify that on this 21st day of February, 2020, I electronically filed the 

foregoing document with the Clerk of Court using the CM/ECF system and mailed the document 

by United States Postal Service to the following:

Paul D. Weldon

P.O. Box 9094

Fresno, CA 93790

Jon Marple

Aegis Tax Defense, LLC

20821 D Eva Street, Suite 82

Montgomery, Texas 77356

Attorney for Paul D. Weldon

Craig D. Rust

Deputy Attorney General

Business & Tax Section, Room 1060-6

Office of the Attorney General

1300 I Street, P.O. Box 944255

Sacramento, CA 94244-2550

Attorney for the State of California Franchise Tax Board

Peter Wall

Deputy County Counsel

2220 Tulare St., 5th Floor

Fresno, CA 93721

Attorney for the County of Fresno

/s/ Jonathan M. Hauck 

JONATHAN M. HAUCK

Trial Attorney, Tax Division

U.S. Department of Justice

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