United States v. Feanna Smith
2:16-cv-08895
C.D. Cal.Feb 22, 2017Background
- The United States (Petitioner) sought judicial enforcement of Internal Revenue Service summonses issued to Respondent Feanna Smith.
- The Petition was supported by a sworn IRS declaration and memorandum, which the Court held established the Government's prima facie case under the Powell framework.
- The Court issued an Order to Show Cause directing Smith to appear on a specified return date and to produce testimony and requested books, papers, records, and other data.
- The Order sets out permissible methods for service (personal delivery, leaving at residence with a suitable person, or certified mail) and requires prompt service by the IRS or the U.S. Attorney’s Office.
- Respondent must file and serve a written response, supported by sworn statements, within ten (10) days of service; if she states she does not oppose enforcement, her appearance is excused and she is deemed compliant.
- The Court limited consideration at the return date to issues raised by timely motions or responsive pleadings supported by sworn statements; unchallenged allegations in the Petition are deemed admitted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Government established a prima facie case to enforce the IRS summons | Government: sworn IRS declaration and supporting memo satisfy Powell standards | Smith: (potential) challenge that summons are invalid, overbroad, or irrelevant; may assert privileges | Court: prima facie case established; enforcement proceedings ordered |
| Sufficiency of service and notice | Government: service by IRS or U.S. Atty. via personal delivery, dwelling delivery, or certified mail is proper | Smith: (potential) service may be improper or insufficient | Court: authorized service methods ordered and directed to be effectuated promptly |
| Deadline and requirements for Respondent's response | Government: Respondent must file sworn written response within 10 days | Smith: (potential) may request extension or decline to appear | Court: 10-day deadline enforced; if Respondent states no opposition, appearance excused and deemed compliance |
| Scope of issues the Court will consider on return date | Government: only issues raised by timely motions/sworn statements should be considered | Smith: (potential) seek to raise additional defenses at hearing | Court: only issues timely raised and supported by sworn statements will be considered; other allegations deemed admitted |
Key Cases Cited
- United States v. Powell, 379 U.S. 48 (1964) (sets standard for Government prima facie case to enforce IRS summons)
- Crystal v. United States, 172 F.3d 1141 (9th Cir. 1999) (discusses summons enforcement procedure in Ninth Circuit)
- United States v. Jose, 131 F.3d 1325 (9th Cir. 1997) (recognizes use of IRS agent declaration to establish prima facie case)
- Fortney v. United States, 59 F.3d 117 (9th Cir. 1995) (addresses standards for contesting IRS summons enforcement)
- United States v. Gilleran, 992 F.2d 232 (9th Cir. 1993) (affirms procedural principles for summons enforcement in Ninth Circuit)