Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_14-cv-02692/USCOURTS-casd-3_14-cv-02692-0/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

SOUTHERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Petitioner,

v.

MICHAEL P. MCCARTHY, Respondent. 

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Case No. 14cv2692 BTM (BLM)

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 Michael P. McCarthy 

(“Respondent”). On November 14, 2014, the Court issued an order setting 

a hearing on the petition to enforce. On December 2, 2014, the IRS 

personally served Respondent with a copy of the Court’s order, the 

Government’s petition to enforce and supporting declaration. Respondent 

did not file a written response to the order.

The hearing was held on the Government’s petition on January 30, 

2015, at 2:00 p.m. The Government was represented by Assistant United 

States Attorney Caroline J. Clark. Respondent did not appear. For the 

reasons explained herein, the Government’s petition to enforce the 

summons is granted.

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BACKGROUND

On January 30, 2014, N. Ayrapetyan, a Revenue Officer employed by 

the IRS, issued an IRS summons to Respondent. [Declaration of Revenue 

Officer N. Ayrapetyan in Support of Petition, (“Ayrapetyan Decl.”), ¶ 3] The 

IRS is conducting an investigation to determine Respondent’s ability to pay 

his outstanding civil penalty tax liabilities for the tax years 2001, 2002, 

2003, 2004, 2005, 2007, 2008, 2009, 2010, 2011, and 2012, and unpaid 

Trust Fund Recovery Penalties for the periods ending March 31, 2008, 

June 30, 2008, September 30, 2008, December 31, 2008, March 31, 2009, 

June 30, 2009, September 30, 2009, and December 31, 2009. [Id. at ¶ 2.] 

On January 31, 2014, Revenue Officer Ayrapetyan served the summons 

on Respondent by handing him an attested copy of the summons. [Id. at ¶ 

4.] The summons called for Respondent to appear before the IRS on 

March 4, 2014, at 8:30 a.m. [Id. at ¶ 5.] 

On March 4, 2014, Respondent did not appear before the IRS as 

directed 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 letters to Respondent directing him to appear before the 

IRS. [Id. at ¶¶ 6-7.] Respondent did not provide the IRS with the testimony 

and documents requested by the summons. [Id. at ¶ 9.]

On November 12, 2014, the Government petitioned the Court to 

enforce the summons. On November 14, 2014, the Court set a hearing 

date for this matter and ordered Respondent to respond to the petition on 

or before January 23, 2015 and to appear before the Court on January 30, 

2015 at 2:00 p.m. Respondent did not file a written response. On January 

30, 2015, the Court held a hearing on Government’s petition. Respondent 

did not appear.

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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 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 with respect to the 

determination of Respondent’s ability to pay his outstanding tax liabilities 

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for 2001, 2002, 2003, 2004, 2005, 2007, 2008, 2009, 2010, 2011, and 

2012, as well as unpaid Trust Fund Recovery Penalties for various tax 

periods. [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 affidavit that the information requested by the summons may be 

relevant to the IRS determination of Respondent’s ability to pay his tax 

liability. [Id. at ¶ 12.] Third, the IRS does not already possess the 

testimony, papers, records, and other data sought by the summons issued 

to Respondent. [Id. ¶ 10.] Finally, the IRS has followed and exhausted all 

required administrative steps, but Respondent has not complied with the 

summons. [Id. at ¶ 11.] 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, Michael McCarthy, is 

directed to appear before IRS Revenue Officer N. Ayrapetyan or a 

designee, on March 10, 2015, at 8:30 a.m., at the offices of the Internal 

Revenue Service located at 333 West Broadway, 9th Floor, Room 914, 

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 

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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 her to sanctions for contempt of court.

IT IS SO ORDERED.

Dated: February 9, 2015

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