5:14-cv-01510
C.D. Cal.Jul 25, 2014Background
- The United States filed a petition to enforce Internal Revenue Service summonses issued to respondent Gary O. Batchelor.
- The Government submitted a supporting memorandum and a sworn declaration from the IRS agent establishing a prima facie case under the standard set forth in United States v. Powell.
- The Court found the Government had met its prima facie burden and issued an Order to Show Cause requiring respondent to appear on October 2, 2014 in Riverside to show why enforcement should not be compelled.
- The Order directs prompt personal service (or service at respondent’s dwelling or by certified mail) of the Order, Petition, memorandum, and declaration by the IRS or U.S. Attorney’s Office.
- Respondent must file and serve a written response, supported by sworn statements and any motions, within ten (10) days of service; failure to contest allegations as required will result in them being deemed admitted.
- If respondent states he does not oppose the Petition before the return date, his appearance is excused and he is deemed to have complied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Government established prima facie case to enforce IRS summons | Government: sworn IRS declaration and memorandum satisfy Powell prima facie showing | Respondent: may challenge sufficiency or relevance of summons (not yet filed) | Court: Government established prima facie case; enforcement hearing ordered |
| Proper service of process for the Order and petition | Government: may effect personal delivery, leave at dwelling with suitable person, or certified mail | Respondent: may later contest adequacy of service (not alleged) | Court: specified those methods and directed prompt service |
| Timeframe and content required for respondent’s response | Government: response must be filed within 10 days, supported by sworn statements and motions | Respondent: may request more time or contest by timely sworn filings | Court: set 10-day deadline; only timely sworn issues will be considered |
| Consequences of failure to respond or of stating non-opposition | Government: if no opposition, respondent deemed compliant and appearance excused | Respondent: N/A | Court: non-contested allegations are deemed admitted; appearance excused if respondent declines to oppose |
Key Cases Cited
- United States v. Powell, 379 U.S. 48 (Sup. Ct. 1964) (establishes prima facie standard for enforcing IRS summonses)
- Crystal v. United States, 172 F.3d 1141 (9th Cir. 1999) (discusses enforcement procedures and burden in Ninth Circuit)
- United States v. Jose, 131 F.3d 1325 (9th Cir. 1997) (addressing the Government’s prima facie showing via IRS declarations)
- Fortney v. United States, 59 F.3d 117 (9th Cir. 1995) (explaining that IRS agent’s sworn declaration typically establishes the Government’s prima facie case)
- United States v. Gilleran, 992 F.2d 232 (9th Cir. 1993) (same)