Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-mc-00003/USCOURTS-caed-2_07-mc-00003-2/pdf.json

Parties Involved:
Mehran Alizadeh
Respondent
Dean Prodromos
Petitioner
United States of America
Petitioner

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IN THE UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA and

DEAN PRODROMOS, Revenue Officer,

Internal Revenue Service

Petitioners,

v.

MEHRAN ALIZADEH

Respondent.

2:07-mc-00003-FCD-KJM

FINDINGS AND

RECOMMENDATIONS

Taxpayer: PACIFIC DINING, INC.

UNITED STATES OF AMERICA and

DEAN PRODROMOS, Revenue Officer,

Internal Revenue Service

Petitioners,

v.

MEHRAN ALIZADEH

Respondent.

2:07-mc-00004-FCD-KJM

Taxpayer: CAPITAL CITY

 RESTAURANTS, INC.

This matter came on before the undersigned on March 14, 2007, based on the

Order to Show Cause filed January 23, 2007, which, with the verified petition and exhibits,

was served personally upon respondent on February 7, 2007. Kurt A. Didier appeared for

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petitioners; petitioning Revenue Officer Dean Prodromos was present. Respondent did not

file an opposition. Betty J. Williams appeared on behalf of respondent.

The Verified Petition to Enforce Internal Revenue Service Summonses

initiating this proceeding seeks to enforce two administrative summons in aid of Revenue

Officer Dean Prodromos’ investigation for collection of tax liabilities of Pacific Dining, Inc.

and Capital City Restaurants, Inc. See Exhibit A to Petition in case no. 07-mc-00003, citing

assessed tax liabilities for Pacific Dining, Inc.’s employer’s quarterly federal tax returns (form

941) for June 30, 2005 and September 30, 2005; Exhibit A to Petition in case no. 07-mc00004, citing Capital City Restaurants, Inc.’s assessed tax liabilities for employer’s quarterly

federal tax returns (form 941) for December 31, 2005 and March 31, 2006. Subject matter

jurisdiction is properly invoked under 28 U.S.C. §§ 1340 and 1345. Authorization for the

action is provided by I.R.C. §§ 7402(b) and 7604(a). The Order to Show Cause shifted to

respondent the burden of rebutting the prima facie showing on any of the four requirements of

United States v. Powell, 379 U.S. 48, 57-58 (1964).

Based on this court’s review of the uncontroverted verification of Revenue

Officer Prodromos and the entire record, the court makes the following findings:

(1) The summonses issued by Revenue Officer Dean Prodromos to respondent

Mehran Alizadeh, d/b/a/ Pacific Dining, Inc. and Capital City Restaurants, Inc., on July 21,

2006, seeking testimony and production of documents and records in respondent's possession,

were in good faith and for a legitimate purpose under I.R.C. § 7602, that is, the investigation

for collection of tax liabilities of Pacific Dining, Inc. and Capital City Restaurants, Inc., for

the quarters ending June 30, 2005 and September 30, 2005, as well as December 31, 2005 and

March 31, 2006, respectively. 

(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.

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(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 make a prima facie showing of

satisfaction of the requirements of United States v. Powell, 379 U.S. 48, 57-58 (1964).

(7) The burden has shifted to respondent, Mehran Alizadeh, to rebut that prima

facie showing.

(8) Respondent’s counsel presented no argument or evidence to rebut the prima

facie showing, but stated that respondent had no objection to enforcement of the I.R.S.

summons.

Accordingly, IT IS HEREBY RECOMMENDED that the IRS summons issued

to respondent, Mehran Alizadeh, d/b/a Pacific Dining, Inc. and Capital City Restaurants, Inc.,

be enforced, and that respondent be ordered to appear at the I.R.S. offices at 4330 Watt

Avenue, Sacramento, California 95821, before Revenue Officer Dean Prodromos or his

designated representative, on the twenty-first day after the filing date of the summons

enforcement order, or at a later date and time to be set in writing by the Revenue Officer, then

and there to be sworn, to give testimony, and to produce for examining and copying the

books, checks, records, papers and other data demanded by the summons, the examination to

continue from day to day until completed. 

These findings and recommendation are submitted to the United States District

Judge assigned to the case, pursuant to the provisions of 28 U.S.C. § 636(b)(1)(B) and (C)

and Rule 72-304 of the Local Rules of the United States District Court for the Eastern District

of California. Within ten (10) 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 five (5) days

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

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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).

DATED: March 30, 2007. 

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