United States v. Knutson, 1:17-cv-01227

The United States filed a petition on Sept. 12, 2017 to enforce an IRS summons issued to respondent Jon Knutson (sole member of Golden Valley Supportive Services) regarding Forms 940 and 941 for specified periods from 2006–2016.
Revenue Officer Michael J. Papasergia issued the summons March 20, 2017 and left an attested copy at respondent’s usual abode on March 21, 2017; respondent did not appear for the April 20, 2017 appointment.
The government alleges the requested materials are not already in IRS possession and are necessary for collection information; the issuing officer attests he was authorized and followed required administrative steps.
The court issued an order to show cause; respondent was subsequently personally served but did not file any response or objections and did not appear at the enforcement hearing.
The magistrate judge found the government satisfied the Powell requirements and that respondent failed to meet the heavy burden to show abuse of process or lack of institutional good faith.
Recommendation: grant the petition to enforce the IRS summons and direct service of these findings; parties may file objections within 14 days.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the IRS summons should be enforced under 26 U.S.C. § 7604	Summons issued for legitimate collection purpose; inquiry relevant; materials not already held; administrative steps followed	Respondent did not contest or present arguments	Court recommended enforcement — Powell factors satisfied
Sufficiency of service of summons and process	Summons was left at respondent’s last and usual abode and later personal service of order occurred	No challenge to service	Service was adequate under IRS statute and Ninth Circuit precedent
Burden to avoid enforcement (abuse of process/institutional bad faith)	Government: once prima facie case shown, taxpayer bears heavy burden to show abuse/bad faith	Respondent presented no evidence or argument	Respondent failed to meet burden; enforcement appropriate
Scope/relevance of materials sought	Materials requested are necessary for collection inquiry for specified tax periods	No responsive challenge to relevance	Court found relevance adequate under Powell

U.S. v. Powell, 379 U.S. 48 (Establishes requirements to enforce IRS summons)
U.S. v. Dynavac, Inc., 6 F.3d 1407 (9th Cir. 1993) (government’s showing is slight; taxpayer bears heavy burden to prove abuse)
U.S. v. Abrahams, 905 F.2d 1276 (9th Cir. 1990) (supporting precedent on Powell standard)
Liberty Financial Servs. v. U.S., 778 F.2d 1390 (9th Cir. 1985) (statute construed broadly to protect IRS enforcement powers)
Crystal v. U.S., 172 F.3d 1141 (9th Cir. 1999) (minimal government burden to enforce summons)
U.S. v. Gilleran, 992 F.2d 232 (9th Cir. 1993) (service at last and usual place of abode is authorized)
Wilkerson v. Wheeler, 772 F.3d 834 (9th Cir. 2014) (failure to timely object may waive appellate rights)