United States v. Kevin Jones
2:16-cv-08983
C.D. Cal.Dec 21, 2016Background:
- The United States filed a petition to enforce an IRS summons served on Techguard Insurance Company, Ltd., seeking testimony and production of records.
- The petition was supported by a memorandum and a sworn declaration from the IRS agent who issued the summons.
- The Court found the Government established a prima facie case for enforcement of the IRS summons under controlling authority.
- The Court issued an Order to Show Cause requiring respondent Kevin Jones, as President of Techguard, to appear and show why compliance should not be compelled.
- The Order set a return date (March 20, 2017) and required service of the Order and petition on the respondent, with a ten-day deadline to file a written response supported by sworn statements.
- The Order warned that issues not timely raised by sworn responsive pleadings would be deemed admitted and limited consideration to matters raised within the ten-day period.
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 papers meet the Powell prima facie showing | Jones: (not yet filed; will need to contest facts or show statutory/constitutional defense) | Court: Government established prima facie case; show-cause hearing ordered |
| Whether respondent must appear and produce testimony/records | Government: summons enforcement is warranted to obtain tax-related information | Jones: (not presented) | Court: Ordered appearance and production unless respondent timely contests |
| Proper service and response procedures | Government: permit personal service or leave at dwelling or certified mail; require response within 10 days | Jones: (not presented) | Court: Service methods and 10-day response deadline ordered |
| Consequences of failure to timely contest | Government: issues not contested by sworn statements deemed admitted; motions addressed at return date | Jones: (not presented) | Court: Failure to respond waives defenses; hearing may proceed in absentia |
Key Cases Cited
- United States v. Powell, 379 U.S. 48 (1964) (standard for prima facie showing to enforce IRS summons)
- Crystal v. United States, 172 F.3d 1141 (9th Cir. 1999) (application of Powell in Ninth Circuit)
- United States v. Jose, 131 F.3d 1325 (9th Cir. 1997) (summons-enforcement procedures)
- Fortney v. United States, 59 F.3d 117 (9th Cir. 1995) (government's prima facie case via IRS agent declaration)
- United States v. Gilleran, 992 F.2d 232 (9th Cir. 1993) (procedural aspects of summons enforcement)