Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-04167/USCOURTS-cand-5_05-cv-04167-4/pdf.json

Nature of Suit Code: 871
Nature of Suit: IRS 3rd Party Suits 26 USC 7609 (U.S. plaintiff)
Cause of Action: 26:7609 IRS: Petition to Quash IRS Summons

---

SCOTT N. SCHOOLS (SCSBN 9990) 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

United States Attorney 

JAY R. WEILL (CSBN 75434) 

Assistant United States Attorney 

Chief, Tax Division 

CYNTHIA STIER (DCBN 423256) 

Assistant United States Attorney 

450 Golden Gate Avenue, Box 36055 

San Francisco, California 94102 

Telephone: (415) 436-7000 

Facsimile: (415) 436-6758 

Email: cynthia.stier@usdoj.gov 

ANTON L. JANIK, JR. 

Trial Attorney, Tax Division 

U.S. Department of Justice 

P.O. Box 683 

Ben Franklin Station 

Washington, D.C. 20044-0683 

Telephone: (202) 305-2558 

Facsimile: (202) 307-0054 

Email:Anton.L.Janik@usdoj.gov 

Attorneys for the United States of America 

IN THE UNITED STATES DISTRICT COURT FOR THE 

NORTHERN DISTRICT OF CALIFORNIA 

IN THE MATTER OF TAX LIABILITIES 

OF: JOHN DOES, 

)

)

)

)

)

)

Case No. CV-05-04167-JW 

STIPULATION AND [PROPOSED] 

ORDER ENFORCING JOHN DOE 

SUMMONS 

Petitioner, the United States of America, and PayPal, Inc. (“PayPal”) (collectively, the 

“Parties”), through their counsel, stipulate as follows: 

WHEREAS, the Internal Revenue Service (“IRS”) petitioned this Court pursuant to 

sections 7609(f) and (h) of the Internal Revenue Code of 1986, 26 U.S.C. § 7609(f) and (h), for 

leave to serve a “John Doe” summons on PayPal; 

WHEREAS, on March 21, 2006, upon consideration of the IRS petition and supporting 

affidavit, this Court determined inter alia that the IRS had reason to believe that certain PayPal 

CASE NO. CV-05-04167-JW 

STIPULATION AND [PROPOSED] ORDER 

ENFORCING JOHN DOE SUMMONS 

1

Case 5:05-cv-04167-JW Document 25 Filed 08/01/07 Page 1 of 4
customers may have failed to properly report their income and accordingly entered an ex parte

Order granting leave for the IRS to serve the John Doe summons upon PayPal (the “March 21, 

2006 Order”), 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREAS, the IRS subsequently served the summons on PayPal; 

WHEREAS, PayPal refused to produce the summonsed information because (i) PayPal 

believed that certain demands in the summons exceeded the limits of 26 U.S.C. § 7609; and (ii) 

PayPal will produce the information only upon being compelled by valid court order; 

WHEREAS, PayPal and the IRS have met and extensively discussed and negotiated the 

scope of the summons; and 

WHEREAS, the Parties have agreed that PayPal shall be compelled to comply with the 

summons pursuant to the Court’s Order as set forth below and in Attachment A. 

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED: 

Subject to the Court’s approval, an Order Enforcing Summons in the form attached 

hereto shall be filed and entered by the Court. 

IT IS SO STIPULATED BY AND AMONG THE PARTIES. 

Dated: July 31, 2007 

SCOTT N. SCHOOLS BAKER & McKENZIE LLP 

United States Attorney 

JAY R. WEILL 

Assistant United States Attorney /s/ Scott H. Frewing 

Chief, Tax Division SCOTT H. FREWING 

CYNTHIA STIER 

Assistant United States Attorney Attorney for PayPal, Inc. 

/s/ Anton L. Janik, Jr. 

ANTON L. JANIK, JR. 

Trial Attorney, Tax Division 

U.S. Department of Justice 

Post Office Box 683 

Ben Franklin Station 

Washington, D.C. 20044 

Telephone: (202) 305-2558 

Attorneys for the United States 

CASE NO. CV-05-04167-JW 

STIPULATION AND [PROPOSED] ORDER 

ENFORCING JOHN DOE SUMMONS 

2

Case 5:05-cv-04167-JW Document 25 Filed 08/01/07 Page 2 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

IN THE UNITED STATES DISTRICT COURT FOR THE 

NORTHERN DISTRICT OF CALIFORNIA 

IN THE MATTER OF TAX LIABILITIES 

OF: JOHN DOES, 

)

)

)

)

)

)

Case No. CV-05-04167-JW 

[PROPOSED] ORDER ENFORCING 

JOHN DOE SUMMONS 

1. PayPal is hereby ordered to produce to the Internal Revenue Service, at such time 

and place as may hereafter be determined by mutual agreement of the Parties, the information 

specified below in Paragraph 3 of this Order for those PayPal accounts for which a PayPal user, 

upon registration with PayPal, identified their originating country as the United States of 

America (“U.S. accounts”) and which also meet the following criteria: 

(a) any PayPal U.S. accounts for which any source or destination of account 

funds at any time during the period January 1, 1999, through the date of 

compliance with this Stipulated Order, was a payment card with a Bank 

Identification Number (“BIN”) on the list provided to PayPal by the 

Internal Revenue Service on October 4, 2006, as long as such payment 

card number is not listed in Schedule B to the John Doe Summons 

(provided in an electronic file to PayPal); or 

CASE NO. CV-05-04167-JW 

STIPULATION AND [PROPOSED] ORDER 

ENFORCING JOHN DOE SUMMONS 

3

Case 5:05-cv-04167-JW Document 25 Filed 08/01/07 Page 3 of 4
(b) any PayPal U.S. accounts where the source or destination of account 

funds at any time during the period January 1, 1999, through the date of 

compliance with this Stipulated Order, was one of the payment cards 

attached to the John Doe Summons as Schedule A (provided in an 

electronic file to PayPal). 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2. To the extent a PayPal U.S. account includes more than one payment card, and at 

least one of those payment cards is responsive to paragraph 1(a), above, and is not on Schedule 

B, PayPal shall produce the information specified in paragraph 3 of this Order. 

3. PayPal is hereby ordered to produce to the IRS the information listed in 

Attachment A to this Order for each account identified pursuant to Paragraphs 1 and 2 of this 

Order. 

4. PayPal is not compelled to provide the following information: 

(a) Any information related to PayPal accounts for which the PayPal user, 

upon opening the account, identified the user’s originating jurisdiction as a 

country other than the United States (“non-U.S. accounts”); 

 (b) any notes or correspondence that users of PayPal’s “send money” service 

are permitted to include with money transfers; 

 (c) any information not included in Paragraph 3 above. 

IT IS SO ORDERED. 

Dated: ____________ ___, 2007 

JAMES WARE 

United States District Judge 

CASE NO. CV-05-04167-JW 

STIPULATION AND [PROPOSED] ORDER 

ENFORCING JOHN DOE SUMMONS 

4

August 1

Case 5:05-cv-04167-JW Document 25 Filed 08/01/07 Page 4 of 4