Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_16-cv-00392/USCOURTS-caed-1_16-cv-00392-1/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:7402 IRS: Petition to Enforce IRS Summons

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Magistrate Judge’s Findings and Recommendations and Order Re: IRS 1

Summons Enforcement

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IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Petitioner,

v.

STUART R. SCHOFIELD, DMD, 

Respondent.

1:16-CV-00392-AWI-EPG

MAGISTRATE JUDGE’S FINDINGS AND 

RECOMMENDATIONS AND ORDER RE: 

IRS SUMMMONS ENFORCEMENT

Taxpayer:

STUART R. SCHOFIELD, DMD

This matter came on before U.S. Magistrate Judge Erica P. Grosjean on May 19, 2016, under the 

Order to Show Cause filed March 25, 2016, Doc. #4, and Minute Order filed April 20, 2016, Doc. #6. 

The order, with the verified petition filed March 22, 2016, and its supporting memorandum, was 

personally served on Respondent by personally handing the documents to him at 1402 California

Avenue, Dos Palos, California, see Doc. #5; the minute order was likewise served on Respondent, see

Doc. #7. Respondent did not file an opposition or non-opposition to the verified petition as provided for 

in the Order to Show Cause. At the hearing on May 19, 2016, Bobbie J. Montoya, Assistant United 

States Attorney, appeared for Petitioner, and investigating Revenue Officer (RO) Tony Garza was 

present in the courtroom. Respondent also personally appeared.

The Verified Petition to Enforce IRS Summons initiating this proceeding, Doc. #1, seeks to 

enforce an administrative summons (Exhibit A to the petition) issued September 3, 2015. The summons 

is part of an investigation of the Respondent to secure information needed to collect the following 

assessed federal income tax Form 940 for the calendar period ending December 31, 2014, and Form 

941 for the quarterly periods ending March 31, 2010, December 31, 2010, March 31, 2011, June 30, 

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Magistrate Judge’s Findings and Recommendations and Order Re: IRS 2

Summons Enforcement

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2011, September 30, 2011, December 31, 2011, September 30, 2012, December 31, 2012, March 31, 

2013, June 30, 2013, September 30, 2013, December 31, 2013 and June 30, 2014.

The Court has reviewed the petition and the supporting documentation. Based on the 

uncontroverted petition verified by RO Garza and the entire record, the Court makes the following 

findings:

(1) The summons issued by RO Garza on September 3, 2015, and served on September 3, 2015, 

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 to 

collect the following assessed federal income tax Form 940 for the calendar period ending December 31, 

2014, and Form 941 for the quarterly periods ending March 31, 2010, December 31, 2010, March 31, 

2011, June 30, 2011, September 30, 2011, December 31, 2011, September 30, 2012, December 31, 

2012, March 31, 2013, June 30, 2013, September 30, 2013, December 31, 2013 and June 30, 2014.

(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 criminal prosecution.

(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, Stuart R. Schofield, DMD, to rebut that prima facie

showing.

(8) Although the Respondent indicated that he thought he had complied with the summons and 

also demonstrated a willingness to cooperate with RO Garza by bringing additional paperwork to the 

hearing, he did not rebut the prima facie showing. Moreover, the documents he produced were 

insufficient to be in compliance with the summons. See Declaration of Bobbie J. Montoya, Doc. #10, at 

¶ 4. After engaging in a meet and confer, Respondent agreed to produce the outstanding documentary

information sought in the summons to RO Garza by no later than June 9, 2016, at the Internal Revenue 

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Summons Enforcement

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Service, 2525 Capitol Street, Suite 206, Fresno, California. See Declaration of Bobbie J. Montoya, Doc. 

#10, at ¶ 6.

1

 The documents Respondent shall produce are as follows: 

1) Provide copies of bank statements for WestAmerica Bank, Merced School Employees; 

Federal Credit Union and Universal Campus Credit Union. Dates: 01/01/2016 through

05/31/2016;

2) Provide copies of mortgage statement for primary residence, 41690 Valeria Ave, Dos

Palos, CA 93620. Dates: 01/01/2016 through 05/31/2016;

3) Provide copies of utilities bills. Dates: 01/01/2016 through 05/31/2016;

4) Provide copies of investments statements for New York Life & American Fund. Dates

01/01/2016 through 05/31/2016;

5) Provide copies of current lender statement & car registration for 2001 Honda Civic,

2013 Chevy Traverse and Toyota Tacoma;

6) Provide copies of wage verification/paystubs. Dates: 01/01/2016 through 05/31/2016;

7) Provide copies of health insurance coverage statement. Dates: 01/01/2016 through

05/31/2016;

8) Provide copies of out of pocket health care cost. Dates: 01/01/2016 through

05/31/2016; and

9) Provide copies of documentation on other secured debts listed on 433-A, Page 4, line

46. Dates: 01/01/2016 through 05/31/2016.

Accordingly, it is recommend that the IRS summons served upon Respondent be enforced; and 

that Respondent be ordered to comply with the summons by producing the outstanding documentary 

information listed above and testimony sought in the summons to RO Garza on or before June 9, 2016. 

Should the June 9th date need to be continued or rescheduled, the date is to be set in writing for a later 

date by RO Garza. The Court further recommends that the Court retain jurisdiction to enforce its order 

by its contempt power if these findings and recommendations are adopted and the summons is enforced. 

These findings and recommendations are submitted to the United States District Judge assigned 

to the case, under 28 U.S.C. § 636(b)(1)(B) and (C) and Rule 304 of the Local Rules of the United States 

 

1

 On May 20, 2016, RO Garza mailed to Respondent and faxed to his power of attorney, 

Robert Emmett Burns, a list of the information/documents that Respondent is to produce to RO Garza 

by no later than June 9, 2016. Montoya Decl. at ¶ 6. 

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District Court for the Eastern District of California. Within fourteen (14) days after being served with 

these findings and recommendations, any party may file written objections with the court and serve a 

copy on all parties. Such a document should be titled “Objections to Magistrate Judge’s Findings and 

Recommendations.” Any reply to the objections shall be served and filed within fourteen (14) days after 

service of the objections. The District Judge will then review these findings and recommendations 

pursuant to 28 U.S.C. § 636(b)(1). The parties are advised that failure to file objections within the 

specified time may waive the right to appeal the District Court's order. Martinez v. Ylst, 951 F.2d 1153 

(9th Cir. 1991).

Finally, in the event that the Respondent complies with this order to the satisfaction of the 

United States prior to the District Court adopting these Findings and Recommendations, the United 

States of America shall notify the Court and file a withdrawal of the Petition if appropriate. (Doc. #1). 

THE CLERK SHALL SERVE this and further orders by mail to Stuart R. Schofield, DMD, 1402 

California Avenue, Dos Palos, CA 93620.

IT IS SO ORDERED.

Dated: June 1, 2016 /s/

UNITED STATES MAGISTRATE JUDGE

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