Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_10-cv-01346/USCOURTS-cand-5_10-cv-01346-1/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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United States District Court

For the Northern District of California

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NOT FOR CITATION

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

UNITED STATES OF AMERICA and DELMA

MITCHELL, Revenue Officer,

Petitioners,

 v.

SCOTT STOTLER,

Respondent.

 /

No. C10-01346 HRL

ORDER GRANTING VERIFIED

PETITION TO ENFORCE IRS

SUMMONS

[Re: Docket No. 1]

This matter is before the court on an order to show cause why respondent Scott Stotler

should not be required to comply with an Internal Revenue Service (IRS) summons. Pursuant

to 28 U.S.C. § 636(c) and Fed. R. Civ. P. 73, all parties have expressly consented that all

proceedings in this matter may be heard and finally adjudicated by the undersigned. Based

upon the record presented, as well as the discussion at the June 8, 2010 show cause hearing, this

court grants the petition.

Under 26 U.S.C. § 7602(a), the IRS is authorized to issue a summons relevant to the

investigation of any taxpayer’s liability. Summons may be issued for the purposes of

“ascertaining the correctness of any return, making a return where none has been made,

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

liability.” 26 U.S.C. § 7602(a); see also Crystal v. United States, 172 F.3d 1141, 1143 (9th Cir.

*E-FILED 06-08-2010*

Case 5:10-cv-01346-HRL Document 9 Filed 06/08/10 Page 1 of 3
United States District Court

For the Northern District of California

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1999) (quoting 26 U.S.C. § 7602(a)). To enforce a summons, the IRS must establish a prima

facie case for enforcement 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 in the

IRS’s possession; and (4) satisfies all of the administrative steps set forth in the Internal

Revenue Code. United States 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.’” Crystal, 172 F.3d at 1144 (quoting United States v.

Dynavac, Inc., 6 F.3d 1407, 1414 (9th Cir. 1993)).

Here, the verified petition indicates that the IRS’s investigation is being conducted for a

legitimate purpose of ascertaining respondent’s assets and liabilities as part of an effort to

collect unpaid federal tax liabilities for certain periods of time. (See Pet. ¶¶ 3-4). The summons

is relevant to that purpose and asks respondent to appear and bring with him documents

pertaining to his assets and liabilities (e.g., bank statements, checkbooks, canceled checks,

saving account passbooks, and records or certificates of deposit). (See id., Ex. A). The petition

further indicates that the information is not already in the IRS’s possession, that there has been

no referral for criminal prosecution of this matter, and that all administrative steps required by

the internal Revenue Code for the issuance of the summons have been taken. (See Pet. ¶¶ 6, 11,

12 and Ex. A). Further, Mr. Stotler appeared at the June 8, 2010 show cause hearing and stated

that he has made efforts to cooperate with the subject summons and will continue to do so.

Based on the foregoing, this court finds that the summons is enforceable in its entirety,

and the petition to enforce the IRS summons therefore is granted. Petitioners are instructed to

promptly serve a copy of this order on respondent and to file a proof of service with the court.

SO ORDERED.

Dated:

 

HOWARD R. LLOYD

UNITED STATES MAGISTRATE JUDGE

June 8, 2010

Case 5:10-cv-01346-HRL Document 9 Filed 06/08/10 Page 2 of 3
United States District Court

For the Northern District of California

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5:10-cv-1346 Notice electronically mailed to: 

Thomas M. Newman thomas.newman2@usdoj.gov

Counsel are responsible for distributing copies of this document to co-counsel who have not

registered for e-filing under the court’s CM/ECF program.

Case 5:10-cv-01346-HRL Document 9 Filed 06/08/10 Page 3 of 3