Tison v. United States, 2:04-cv-01997

Tison v. United States

2:04-cv-01997

| E.D. Cal. | May 18, 2006

Check Treatment

Docket

Case Information

FILED

MAY 192006

CLERK, U S. DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA

DEAUTH CLIDA

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

BRUCE A. TISON, Executor/ Administrator for the ESTATE OF CHARLES G. TISON, Plaintiff, v.

UNITED STATES OF AMERICA,

Defendants.

Pursuant to court order, a Pretrial Conference was held in Chambers on April 17, 2006. SCOTT CAMERON and TODD LOUMA appeared as counsel for plaintiff; PAUL HAM, GOUD MARGANI and YOSHINORI TOSO HIMEL appeared as counsel for defendant. Above listed counsel are therefore designated as lead trial counsel. On May 1, 2006, the court issued its tentative pretrial order. After consideration of the parties' objections and requests for augmentation, the court makes the following ORDERS:

I. JURISDICTION/VENUE

Jurisdiction is predicated upon 28 U.S.C. § 1346, and has previously been found to be proper by order of this court, as has venue. Those orders are confirmed.

II. JURY/NON-JURY

Plaintiff has timely demanded a jury trial. The government's request that the court bifurcate the trial is denied. It is the court's view that the question of whether or not the decedent is financially disabled addresses a question of the merits rather than of jurisdiction. In the event that the trial brief from the government convinces the court otherwise, the court will treat the jury's verdict as an advisory verdict concerning the facts underlying the jurisdictional question.

III. UNDISPUTED FACTS

A. General Facts

On September 24, 2004 plaintiff Bruce Tison, as the executor/administrator of Charles Tison's estate, filed this action seeking refunds involving Charles Tison's federal income taxes for the 1993 through 2001 tax years.
Charles Tison was the father of plaintiff Bruce Tison.
After Charles Tison's death, plaintiff Bruce Tison discovered that Charles Tison had not filed any of his personal federal income tax returns or Ti-Gas's corporate federal income tax returns for the 1993 through 2001 tax years.
Upon this discovery, plaintiff Bruce Tison employed James York, CPA, and his staff to prepare federal income tax returns for

*3 | 1 | | | :--: | :--: | | 2 | 5. Before January 2003, when plaintiff Bruce Tison filed | | 3 | Charles Tison's federal income tax returns for the 1993 through | | 4 | 2001 tax years as the personal representative of Charles Tison's | | 5 | estate, Charles Tison had not made a claim for refund for these | | 6 | years. | | 7 | 6. The only remaining claims for refund at issue are | | 8 | plaintiff Bruce Tison's claims for refunds on behalf of Charles | | 9 | Tison in the amounts of $$ 4, 756.67, $ 8, 064.53, $ 45, 138, $ 66, 927$ , and | | 10 | $$ 44, 148$ for personal income taxes for the tax years ending December | | 11 | 31, 1993, 1994, 1996, 1997, and 1998. | | 12 | 7. Therefore, the total amount claimed by plaintiff Bruce | | 13 | Tison as owed to Charles Tison's estate for the 1993, 1994, 1996, | | 14 | 1997, and 1998 tax years is $$ 169, 034.20$ , plus any applicable | | 15 | interest. | | 16 | B. Facts Related To Ti-Gas Corporation | | 17 | 8. Ti-Gas was incorporated on August 14, 1969. | | 18 | 9. Ti-Gas is located at 13971 River Road, Walnut Grove, | | 19 | California ("Walnut Grove location"). | | 20 | 10. Ti-Gas has only one physical facility, located at the | | 21 | Walnut Grove location. | | 22 | 11. From 1985 until his death in 2002, Charles Tison was | | 23 | Ti-Gas's sole shareholder, president and general manager. | | 24 | 12. Plaintiff Bruce Tison is now Ti-Gas's owner, president | | 25 | and general manager. | | 26 | //// |

Ti-Gas provides propane gas and services related to propane gas, primarily for farms and homes.
From 1974 to 2005, Ti-Gas employed approximately five to seven people at a time.
For the corporate income tax years ending July 31, 1993 through July 31, 2001, Ti-Gas generated gross revenues of $$ 588, 513$ , $$ 687, 481, $ 690, 211, $ 649, 470, $ 741, 424, $ 817, 369, $ 1, 078, 725$ , $$ 896, 780$ , and $$ 1, 229, 620$ , respectively.
For the corporate income tax years ending July 31, 1993 through July 31, 2001, Ti-Gas generated gross profits of $$ 265, 731$ , $$ 302, 774, $ 323, 150, $ 299, 712, $ 277, 987, $ 347, 652, $ 564, 160$ , $$ 439, 249$ , and $$ 384, 412$ , respectively.
From 1993 to 2001, Ti-Gas was always profitable. C. Facts Related To Charles Tison's Alcoholism
Dr. Go is plaintiff's proffered expert witness in this action.
In 1996, Charles Tison attended a two-week rehabilitation program related to his alcoholism.
The two-week alcohol rehabilitation program in 1996 was ineffective. Charles Tison resumed his drinking soon after his discharge.
Henry Go, M.D., was Charles Tison's primary physician from 1986 until Charles Tison's death.
Charles Tison signed various checks to the State of California Franchise Tax Board toward payment of his state income tax liabilities, including a check dated April 14, 1999 in the

*5 | 1 | amount of $$ 18, 000$ for the 1998 tax year, a check dated April 15, 1998 in the amount of $$ 18, 000$ for the 1997 tax year, a check dated April 15, 1996 in the amount of $$ 3, 000$ for the 1995 tax year, and a check dated April 15, 1994 in the amount of $$ 12, 000$ for the 1993 tax year. | | :--: | :--: | | 6 | IV. DISPUTED FACTUAL ISSUES | | 7 | 1. Whether or not Charles G. Tison's alcoholism was a physical or mental impairment. | | 9 | 2. Whether or not Charles G. Tison's alcoholism rendered him unable to manage complex details of financial accounting required to prepare corporate and personal income tax returns from 1993 to 2001. | | 12 | 3. Whether or not Charles G. Tison's alcoholism prevented him from providing detailed financial information to his accountant from 1993 to 2001. | | 16 | 4. Whether or not any person was authorized to act on Charles G. Tison's behalf in managing his personal financial matters. | | 19 | 5. Whether or not Charles G. Tison's alcoholism prevented him from managing the day-to-day operations of TiGas, such as paying bills. | | 20 | 6. Whether or not Charles G. Tison's alcoholism prevented him from maintaining worker's compensation insurance. | | 24 | 7. Whether or not Charles G. Tison's alcoholism prevented him from maintaining liability insurance on his service vehicles. | | 26 | 8. Whether or not Charles G. Tison's alcoholism prevented |

*6 | 1 | him from providing required service to the customers of TiGas. | | :--: | :--: | | 2 | 9. Whether or not Charles G. Tison regularly became | | 3 | intoxicated during the work day. | | 4 | 10. Whether or not Charles G. Tison's intoxication regularly | | 5 | prevented him from performing the duties of his position as manager | | 6 | of TiGas. | | 7 | 11. Whether or not on September 13, 2002, just prior to his | | 8 | death, Charles Tison was admitted to the hospital for symptoms | | 9 | related to alcohol withdrawal. | | 10 | 12. Whether or not alcoholism was a significant contributing | | 11 | factor to his death. | | 12 | 13. Whether or not Plaintiff Bruce Tison satisfied the | | 13 | requirements promulgated by the Internal Revenue Service to | | 14 | demonstrate that Charles G. Tison was financially disabled. | | 15 | 14. Whether or not Charles Tison died of a pulmonary embolism | | 16 | on September 24, 2002. | | 17 | 15. Whether or not Charles Tison was an alcoholic who died | | 18 | at the age of 71, on September 24, 2002, of a pulmonary embolism. | | 19 | 16. Whether or not the cause of Charles Tison's death, the | | 20 | pulmonary embolism, was the result of being sedated and bed-ridden | | 21 | for seven days and the consequential formation of blood clots. | | 22 | 17. Whether or not from 1990 until Charles Tison's death, | | 23 | Charles Tison had medical visits with Dr. Go, approximately, as | | 24 | follows: once in 1992, four times in 1995, once in 1997, once in | | 25 | 1998, once in 1999, and once in 2001. | | 26 | $/ / / /$ |

Whether or not the 1992 visit was a general physical exam in which Dr. Go concluded that Charles Tison was generally healthy. 19. Whether or not the 1995 through 2001 visits were generally related to Charles Tison's back pain, leg pain, shingles, wrist pain, a colon exam, lab work, and the completion of an insurance form.
Whether or not any of the visits during 1993 through 1998 was directly related to Charles Tison's alcoholism.
Whether or not during these visits, the only thing Dr. Go wrote in Charles Tison's medical records relating to alcoholism was on December 15, 1997 in which Dr. Go wrote then that Charles Tison had attended an alcohol rehabilitation program.
Whether or not Dr. Go provided a letter to the Internal Revenue Service regarding Charles Tison's alcoholism. In the letter provided by Dr. Go to the Internal Revenue Service, Dr. Go concluded that Charles Tison, although an alcoholic, was functional and could work, operate, and maintain his business.
Whether or not in Dr. Go's opinion, Charles Tison did not suffer from severe alcoholism to the extent that he needed constant care. In Dr. Go's opinion, Charles Tison "was a functioning person for most of the aspects of his business life . . . [who] had a fanatic way of just taking care of customers" and "by and large . . . had a fanatical, dedicated, driving type of energy for most of the things attendant to his work."
Whether or not as of June 26, 2001 (approximately 1 year and 3 months before Charles Tison's death), Dr. Go believed that

*8 | 1 | | | :--: | :--: | | 2 | | | 3 | | | 4 | | | 5 | | | 6 | | | 7 | | | 8 | | | 9 | | | 10 | | | 11 | | | 12 | | | 13 | | | 14 | | | 15 | | | 16 | | | 17 | | | 18 | | | 19 | | | 20 | | | 21 | | | 22 | | | 23 | | | 24 | | | 25 | | | 26 | | | 27 | | | 28 | | | 29 | | | 30 | | | 31 | | | 32 | |

*9 | 1 | figures. | | :--: | :--: | | 2 | 33. Whether or not from 1993 to at least 2000, Charles Tison regularly met with Ti-Gas employees | | 4 | to review its operating expenses. | | 5 | 34. Whether or not from 1993 to at least 2000, Charles Tison signed all of Ti-Gas's twice-a-month payroll checks to its employees. | | 8 | 35. Whether or not from 1993 to at least 2000, Charles Tison approved all checks written on behalf of Ti-Gas before the checks | | 10 | were issued. | | 11 | 36. Whether or not from 1993 to at least 2000, Charles Tison performed service work on behalf of Ti-Gas. The service work | | 12 | required Charles Tison to visit customers and to perform repair and maintenance work on propane-related equipment. | | 15 | 37. Whether or not from 1993 to at least 2000, Charles Tison | | 16 | supervised the employees of Ti-Gas. | | 17 | 38. Whether or not from 1993 until his death in 2002, Charles | | 18 | Tison wrote checks to pay for the rent and utilities on his home. | | 19 | 39. Whether or not for the 1993 tax year, Charles Tison filed | | 20 | two requests for extensions of time to file his 1993 tax return, | | 21 | on April 15, 1994 and on September 2, 2004, with the Internal | | 22 | Revenue Service. These requests were granted. He sent a check in | | 23 | the amount of $$ 36, 000$ for his estimated tax liability for that | | 24 | year. | | 25 | 40. Whether or not for the 1994 tax year, Charles Tison filed | | 26 | two requests for extensions of time to file his 1994 tax return, |

*10 | 1 | on April 15, 1995 and on August 15, 1995, with the Internal Revenue | | :--: | :--: | | 2 | Service. These requests were granted. He sent a check in the amount of $$ 41, 000$ for his estimated tax liability for that year. | | 4 | Whether or not for the 1995 tax year, Charles Tison filed two requests for extensions of time to file his 1995 tax return, | | 6 | on April 15, 1996 and on August 15, 1996, with the Internal Revenue | | 7 | Service. These requests were granted. He sent a check in the amount of $$ 40, 000$ for his estimated tax liability for that year. | | 9 | Whether or not for the 1996 tax year, Charles Tison filed two requests for extensions of time to file his 1996 tax return, | | 11 | on April 15, 1997 and on August 15, 1997, with the Internal Revenue | | 12 | Service. These requests were granted. He sent a check in the amount of $$ 45, 000$ for his estimated tax liability for that year. | | 14 | Whether or not for the 1997 tax year, Charles Tison filed two requests for extensions of time to file his 1997 tax return, | | 16 | on April 15, 1998 and on August 15, 1998, with the Internal Revenue | | 17 | Service. These requests were granted. He sent a check in the amount of $$ 55, 000$ for his estimated tax liability for that year. | | 19 | Whether or not for the 1998 tax year, Charles Tison filed two requests for extensions of time to file his 1998 tax return, | | 21 | on April 15, 1999 and on August 15, 1999, with the Internal Revenue | | 22 | Service. These requests were granted. He sent a check in the amount of $$ 55, 000$ for his estimated tax liability for that year. | | 23 | Whether or not for the 1999 and 2001 tax years, Charles Tison continued to file requests for extensions to file his tax | | 26 | returns. All of these requests were granted. |

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V. DISPUTED EVIDENTIARY ISSUES

Defendant intends to bring two motions in limine: (1) to exclude a party or witness from referring at any time during the trial to the United States' concession that Charles Tison will be refunded the relevant overpayment for any year if it is adjudicated that Charles Tison was financially disabled for that particular tax year; and (2) to exclude any reference by a party or witness at any time during trial to the causes of Charles Tison's final hospitalization and death.

Defendant shall bring on its motions in limine not later than twenty (20) days from the date of this order. Oppositions are due not later than ten (10) days thereafter. Defendant may file its optional reply brief within five (5) days thereafter. The motions in limine shall be set for hearing on the court's regularly scheduled law and motion calendar on July 10, 2006 at 10:00 a.m. in Courtroom No. 4.

The parties will not be permitted to bring motions in limine relative to any evidentiary issues not listed in the final pretrial order absent a showing that the issue was not reasonably foreseeable at the time of the pretrial order.

VI. RELIEF SOUGHT

Plaintiff seeks the following:

Monetary recovery of overpaid taxes for tax years ending December 31, 1993, 1994, 1996, 1997 and 1998, plus any applicable interest; and
Abatement of penalties and interest applied by the IRS.

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Defendant seeks judgment in its favor.

VII. POINTS OF LAW

Trial briefs shall be filed with the court no later than fourteen (14) days prior to the date of trial in accordance with Local Rule 16-285. The parties shall brief the following points of law in their trial briefs: A. Whether or not the question of the decedent's "being financially disabled" is a question going to the merits of the plaintiff's cause of action or jurisdiction; and B. The elements, standards and burdens of proof relative to "being financially disabled" during the relevant tax periods.

ANY CAUSES OF ACTION OR AFFIRMATIVE DEFENSES NOT EXPLICITLY ASSERTED IN THE PRETRIAL ORDER UNDER POINTS OF LAW AT THE TIME IT BECOMES FINAL ARE DISMISSED, AND DEEMED WAIVED.

VIII. ABANDONED ISSUES

Defendant concedes that plaintiff is owed a refund, in an amount that complies with the limitations set forth in 26 U.S.C. $$ 6511$ (b), if defendant was in fact financially disabled within the meaning of the relevant statute.

IX. WITNESSES

Plaintiff anticipates calling the following witnesses: See Attachment "A."

Defendant anticipates calling the following witnesses: See Attachment "B."

Each party may call a witness designated by the other. A. No other witnesses will be permitted to testify unless:

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(1) The party offering the witness demonstrates that the witness is for the purpose of rebutting evidence which could not be reasonably anticipated at the Pretrial Conference, or (2) The witness was discovered after the Pretrial Conference and the proffering party makes the showing required in "B" below. B. Upon the post-Pretrial discovery of witnesses, the attorney shall promptly inform the court and opposing parties of the existence of the unlisted witnesses so that the court may consider at trial whether the witnesses shall be permitted to testify. The evidence will not be permitted unless: (1) The witnesses could not reasonably have been discovered prior to Pretrial; (2) The court and opposing counsel were promptly notified upon discovery of the witnesses; (3) If time permitted, counsel proffered the witnesses for deposition; (4) If time did not permit, a reasonable summary of the witnesses' testimony was provided opposing counsel.

X. EXHIBITS, SCHEDULES AND SUMMARIES

At present, plaintiff contemplates the following by way of exhibits: See Attachment "C."

At present, defendant contemplates the following by way of exhibits: See Attachment "D." A. No other exhibits will be permitted to be introduced unless:

*14 Case 2:04-cv-01997-LKK-GGH Document 57 Filed 05/18/06 Page 14 of 59 (1) The party proffering the exhibit demonstrates that the exhibit is for the purpose of rebutting evidence which could not be reasonably anticipated at the Pretrial Conference, or (2) The exhibit was discovered after the Pretrial Conference and the proffering party makes the showing required in paragraph "B," below. B. Upon the post-Pretrial discovery of exhibits, the attorneys shall promptly inform the court and opposing counsel of the existence of such exhibits so that the court may consider at trial their admissibility. The exhibits will not be received unless the proffering party demonstrates: (1) The exhibits could not reasonably have been discovered prior to Pretrial; (2) The court and counsel were promptly informed of their existence; (3) Counsel forwarded a copy of the exhibit(s) (if physically possible) to opposing counsel. If the exhibit(s) may not be copied, the proffering counsel must show that he has made the exhibit(s) reasonably available for inspection by opposing counsel.

As to each exhibit, each party is ordered to exchange copies of the exhibit not later than fifteen (15) days from the date of this Pretrial Order. Each party is then granted ten (10) days to file with the court and serve on opposing counsel any objections to said exhibits. In making said objections, the party is to set forth the grounds for the objection. As to each exhibit which is

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Case 2:04-cv-01997-LKK-GGH Document 57 Filed 05/18/06 Page 15 of 59 not objected to, it shall be marked and received into evidence and will require no further foundation. Each exhibit which is objected to will be marked for identification only.

In addition to electronically filing said objections, if any, the objections must be submitted by email, as an attachment in Word or WordPerfect format, to: arivas@caed.uscourts.gov.

The attorney for each party is directed to appear before and present an original and one (1) copy of said exhibit to Ana Rivas, Deputy Courtroom Clerk, not later than 10:30 a.m. on the date set for trial. All exhibits shall be submitted to the court in binders. Plaintiff's exhibits shall be listed numerically. Defendant's exhibits shall be listed alphabetically. The parties shall use the standard exhibit stickers provided by the court: pink for plaintiff and blue for defendant.

XI. DISCOVERY DOCUMENTS

Plaintiff does not anticipate the introduction of discovery documents in his case in chief.

Defendant: See Attachment "E." XII. FURTHER DISCOVERY OR MOTIONS Defendant is granted leave to take the depositions of witnesses Ronald Paskins and James Cook not later than forty (40) days from the date of this order.

Pursuant to the court's Status Conference Order, all discovery and law and motion was to have been conducted so as to be completed as of the date of the Pretrial Conference. That order is confirmed. The parties are, of course, free to do anything they

*16 | 1 | desire pursuant to informal agreement. However, any such agreement will not be enforceable in this court. | | :--: | :--: | | 3 | | | 4 | | | 5 | | | 6 | None. | | 7 | | | 8 | | | 9 | A. Counsel are directed to Local Rule 16-285 regarding the contents of and the time for filing trial briefs. | | 10 | B. Counsel are informed that the court has prepared a set of standard jury instructions. In general, they cover all aspects of the trial except those relating to the specific claims of the | | 11 | complaint. Accordingly, counsel need not prepare instructions concerning matters within the scope of the prepared instructions. | | 12 | A copy of the prepared instructions was emailed to the parties concurrently with the tentative pretrial order. | | 13 | C. Counsel are further directed that their specific jury | | 14 | instructions shall be filed fourteen (14) calendar days prior to the date of trial. As to any instructions counsel desires to | | 15 | offer, they shall be prepared in accordance with Local Rule 51- | | 16 | 163 (b) (1) which provides: | | 17 | "Two copies of the instructions shall be submitted. One | | 18 | copy shall be electronically filed as a .pdf document | | 19 | and shall contain each instruction on a separate page, | | 20 | numbered and identified as to the party presenting it. | | 21 | Each instruction shall cite the decision, statute, |

*17 ordinance, regulation or other authority supporting the proposition stated in the instruction."

The second copy ("jury copy") shall be submitted by e-mail to lkkorders@caed.uscourts.gov.

In addition, counsel shall provide copies of proposed forms of verdict, including special verdict forms, at the time the proposed jury instructions are filed with the court. D. It is the duty of counsel to ensure that any deposition which is to be used at trial has been filed with the Clerk of the Court. Counsel are cautioned that a failure to discharge this duty may result in the court precluding use of the deposition or imposition of such other sanctions as the court deems appropriate. E. The parties are ordered to file with the court and exchange between themselves not later than one (1) week before the trial a statement designating portions of depositions intended to be offered or read into evidence (except for portions to be used only for impeachment or rebuttal). F. The parties are ordered to file with the court and exchange between themselves not later than one (1) week before trial the portions of answers to interrogatories which the respective parties intend to offer or read into evidence at the trial (except portions to be used only for impeachment or rebuttal). G. The court has extensive audiovisual equipment available. Any counsel contemplating its use shall contact the court's Telecommunications Manager, Andre Carrier, at (916) 930-4223, at

*18 | 1 | least two weeks in advance of trial to receive the appropriate training. | | :--: | :--: | | 3 | XVI. SETTLEMENT NEGOTIATIONS | | 4 | A Settlement Conference is SET before the Honorable Kimberly | | 5 | J. Mueller on May 19, 2006, at 1:30 p.m. Counsel are directed to submit settlement conference statements to the settlement judge not | | 7 | later than seven (7) days prior to the conference. At counsel's option, such statements may be submitted in confidence pursuant to Local Rule 16-270(d). | | 8 | Each party is directed to have a principal capable of disposition at the Settlement Conference or to be fully authorized to settle the matter on any terms and at the Settlement Conference. | | 9 | XVII. AGREED STATEMENTS | | 14 | None. | | 15 | XVIII. SEPARATE TRIAL OF ISSUES | | 16 | Not appropriate. | | 17 | XIX. IMPARTIAL EXPERTS/LIMITATION OF EXPERTS | | 18 | None. | | 19 | XX. ATTORNEYS' FERS | | 20 | None. | | 21 | XXI. MISCELLANEOUS | | 22 | None. | | 23 | XXII. ESTIMATE OF TRIAL TIME/TRIAL DATE | | 24 | Trial by jury is SET for October 31, 2006, at 10:30 a.m., in | | 25 | Courtroom No. 4. | | 26 | $/ / / /$ |

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Case 2:04-cv-01997-LKK-GGH Document 57 Filed 05/18/06 Page 19 of 59

Counsel are to call Ana Rivas, Courtroom Deputy, at (916) 9304133, one week prior to trial to ascertain status of trial date.

XXIII. MODIFICATIONS TO PRETRIAL ORDER

The parties are reminded that pursuant to Federal Rule of Civil Procedure 16(e), this order shall control the subsequent course of this action and shall be modified only to prevent manifest injustice.

IT IS SO ORDERED. DATED: May 18, 2006. /e/Lawrence K. Karlton LAWRENCE K. KARLTON SENIOR JUDGE UNITED STATES DISTRICT COURT

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*21 Case 2:04-04-01997-LKK-GGH Document 57-Filed 05/01/2006 Page 21 of 69 Case 2:04-cv-01997-LKK-GGH Document 47-2 Filed 04/03/2006 Page 2 of 2

1 3. Dr. Henry Go 4. Toshiko Hamada 5. Ronald Paskins 6. Betty Tison-Mettler 7. James Cook 8. Ramon Sides 9. James York 10. Seve Craner

Dated: April 3, 2006 Respectfully submitted, weintraub genshlea chediak law corporation

By: /S/W. Scott Cameron W. Scott Cameron

State Bar No. 229828 Attorneys for Plaintiff Bruce A. Tison, Administrator for the Estate of Charles G. Tison

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EXHIBIT A: WITNESS LIST

Bruce A. Tison v. United States. Civili No. 8-84-1997 LKK GGB (USDC ED CA)

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*24 Case 2:04-cV-01997-LKK-GGH Document 50 Filed 05/01/2006 Page 24 of 59 Case 2:04-cV-01997-LKK-GGH Document 47-1 Filed 04/03/2006 Page 2 of 3 3. Charles G. Tison's 1994 tax year personal income tax retum 4. Charles G. Tison's 1996 tax year personal income tax retum 5. Charles G. Tison's 1997 tax year personal income tax retum 6. Charles G. Tison's 1998 tax year personal income tax retum 7. Charles G. Tison's 1999 tax year personal income tax retum 8. Charles G. Tison's 2000 tax year personal income tax retum 9. July 28, 2003, letter to the IRS from Ramon Sides 10. Written Statement of Dr. Henry Go. 11. Written Statement of Bruce A. Tison 12. Letters to Charles G. Tison from insurance company re workers compensation insurance. 13. Request for Extension to file income tax return, filed on behalf of Charles G. Tison, tax year 1993. 14. Request for Extension to file income tax return, filed on behalf of Charles G. Tison, tax year 1994. 15. Request for Extension to file income tax return, filed on behalf of Charles G. Tison, tax year 1996. 16. Request for Extension to file income tax return, filed on behalf of Charles G. Tison, tax year 1997. 17. Request for Extension to file income tax return, filed on behalf of Charles G. Tison, tax year 1998. 18. Request for Extension to file income tax return, filed on behalf of Charles G. Tison, tax year 1999. 19. Request for Extension to file income tax return, filed on behalf of Charles G. Tison, tax year 2000. 20. Government's Statement of Account, Charles G. Tison, tax year 1993 21. Government's Statement of Account, Charles G. Tison, tax year 1994 22. Government's Statement of Account, Charles G. Tison, tax year 1996

*25 Case 2:04-04-01997-LKK-GGH Document 50 Filed 05/01/2006 Page 25 of 59 Case 2:04-cv-01997-LKK-GGH Document 47-1 Filed 04/03/2006 Page 3 of 3 23. Government's Statement of Account, Charles G. Tison, tax year 1997 24. Government's Statement of Account, Charles G. Tison, tax year 1998 25. Government's Statement of Account, Charles G. Tison, tax year 1999 26. Government's Statement of Account, Charles G. Tison, tax year 2000 27. Government's Statement of Account, Charles G. Tison, tax year 2001 28. Medical Records of Dr. Henry Go

Dated: April 3, 2006 Respectfully submitted, weintraub genshlea chediak law corporation

By: /S/ W. Scott Cameron W. Scott Cameron

State Bar No. 229828 Attomeys for Plainilf Bruce A. Tison, Administrator for the Estate of Charles G. Tison

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EXHIBIT B: EXHIBIT LIST

Bruce A. Tison v. United States Civil No. S-04-1997 LKK GGH (USDC ED CA)

*27 | K. | Application for an Automatic Extension of Time to File Income Tax Return. | Charles Tison's Application for an Automatic Extension of Time to File Income Tax Return for the 1994 tax year. | | :--: | :--: | :--: | | L. | Application for an Automatic Extension of Time to File Income Tax Retum. | Charles Tison's Application for an Automatic Extension of Time to File Income Tax Return for the 1995 tax year. | | M. | Application for an Automatic Extension of Time to File Income Tax Retum. | Charles Tison's Application for an Automatic Extension of Time to File Income Tax Return for the 1996 tax year. | | N. | Application for an Automatic Extension of Time to File Income Tax Return. | Charles Tison's Application for an Automatic Extension of Time to File Income Tax Return for the 1997 tax year. | | 0. | Application for an Automatic Extension of Time to File Income Tax Return. | Charles Tison's Application for an Automatic Extension of Time to File Income Tax Return for the 1998 tax year. | | P. | Application for an Automatic Extension of Time to File Income Tax Return. | Charles Tison's Application for an Automatic Extension of Time to File Income Tax Return for the 1999 tax year. | | Q. | Application for an Automatic Extension of Time to File Income Tax Return. | Charles Tison's Application for an Automatic Extension of Time to File Income Tax Return for the 2000 tax year. | | R. | Application for an Automatic Extension of Time to File Income Tax Return. | Charles Tison's Application for an Automatic Extension of Time to File Income Tax Return for the 2001 tax year. | | S. | Copies of checks. | $300 +$ copies of checks that Charles Tison's prepared and/or signed on behalf of Ti-Gas to pay for its expenses. | | T. | W-2 &; Income Tax
Return. | Charles Tison's W-2 and Income Tax Return for the 1993 tax year, filed by Bruce Tison. |

*29 | 2K. | Ti-Gas' Corporate Tax
Return. | Ti-Gas' corporate income tax return for the tax year
ending July 31, 2000. | | :-- | :-- | :-- | | 2L. | Ti-Gas' Corporate Tax
Return. | Ti-Gas' corporate income tax return for the tax year
ending July 31, 2001. | | 2M. | Death Certificate. | Sacramento County's Certificate of Death of
Charles Tison. | | 2N. | Letter to Internal Revenue
Service. | Dr. Henry Go's letter, dated June 27, 2003, that he
sent on behalf of Bruce Tison. | | 20. | Physical Report for
Automobile Insurance | Physical Report for Automobile Insurance signed by
Dr. Henry Go, dated June 26, 2001. | | 2P. | Plaintiff's Response to US'
First Set of Interrogatories. | Bruce Tison's response, dated June 30, 2005, to the
United States' First Set of Interrogatories to Bruce
Tison. | | 2Q. | Plaintiff's Response to US'
First Request for
Admissions | Bruce Tison's response, dated June 30, 2002, to the
United States' First Request for Admissions to
Bruce Tison | | 2R. | Summary Exhibit:
Relevant Time Periods for
Determination of Financial
Disability | A summary exhibit of the relevant time periods for
the determination of Charles Tison's alleged
financial disability for the 1993, 1994, 1996, 1997,
and 1998 tax years. See United States Pretrial
Statement, $₫$ XIV (section regarding proposed
stipulations). | | 2S. | Summary Exhibit: United
States' assertions
regarding Charles Tison's
alleged financial disability. | A summary exhibit of the United States' assertions
regarding Charles Tison's ability to manage his
financial affairs during the relevant time period for
the 1993, 1994, 1996, 1997, and 1998 tax years. |

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RESPONSES TO REQUESTS FOR ADMISSION

2 REQUEST NO. 1:

Please admit that, on or about April 15, 1994, Charles G. Tison paid $$ 36, 000$ to the IRS to be applied to his individual income tax liability for the tax year ending December 31, 1993. RESPONSE TO REQUEST NO. 1: Admitted. REQUEST NO. 2: Please admit that, on or about April 15, 1995, Charles G. Tison paid $$ 41, 000$ to the IRS to be applied to his individual income tax liability for the tax year ending December 31, 1994. RESPONSE TO REQUEST NO. 2: Admitted. REQUEST NO. 3: Please admit that, on or about April 15, 1996, Charles G. Tison paid $$ 27, 000$ to the IRS to be applied to his individual income tax liability for the tax year ending December 31, 1995. RESPONSE TO REQUEST NO. 3: Admitted. REQUEST NO. 4: Please admit that neither Charles G. Tison nor Bruce A. Tison (as executor/ administrator of the estate of Charles G. Tison) fully paid each of the following items assessed by the IRS against Charles G. Tison for the tax year ending December 31, 1999: (a) taxes in the amount of $$ 81, 556.00$ (b) penalties in the amount of $$ 14, 043.80$ (c) interest in the amount of $$ 9, 646.14$

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VERIFICATION

I am the executor/administrator for the estate of Charles G. Tison. I have read the foregoing Response of Plaintiff Bruce A. Tison, Executor/Administrator for the Estate of Charles G. Tison to Defendant's Request for Admissions and know its contents. I am informed and believe and on that ground allege that the matters stated therein are true.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on June 30, 2005 at Sacramento, California.

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EXHIBIT D

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Case 2:04-cv-01997-LKK-GGH Document 30 ? Filed 04/01/2006 Page 40 of 39

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Case 2:04-04-01997-LKK-GGH Document 38 - Filed 03/01/2008 Page 41 of 38

INTERROGATORY NO. 3:

Describe all medical treatment obtained for and/or by the taxpayer from January 1, 1993 until the taxpayer's death. Please include the following information for each type of medical treatment sought: a. description of treatment sought b. time period when treatment sought c. name, address and phone number of doctor from whom treatment was sought d. the result of the treatment by that doctor e. Identify each person (if not the taxpayer) who took the taxpayer to each doctor listed in response to this interrogatory.

RESPONSE TO INTERROGATORY NO. 3:

Responding Party objects to this interrogatory as being overbroad, burdensome and oppressive, as taxpayer may have obtained medical treatment countless times in the ten years in question. Responding party is unable to describe "all medical treatment" trennuer received durinn thint time Resonndion nath finthe nhtore in th. extent the interrogatory seeks privileged information. Responding party further objects that this interrogatory seeks information not relevant to the issues in this matter, and not likely to reveal discoverable or relevant information, as the taxpayer may have sought medical treatment for various allments completely unrelated to the taxpayer's alcoholism and financial disabllity. Notwithstanding these objections, and without waiving them, responding party does not have personal knowledge of each time treatment was sought. Responding party is also unaware as to the type of medical treatment the taxpayer may have sought. However, responding party generally is aware that taxpayer sought medical treatment at various times from Dr. Henry Go and also from Methodist Hospital, 7500 Hospital Drive, Sacramento, California, (916) 6899000.

11 (10682/11017/195C/821958.DOC.)

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1 INTERROGATORY NO. 4:

For each and every one of the matters set forth in the United States' First Request for Admissions (sic) that is denied or objected to, or for which any response other than an unqualified "admit" is given, please: a) State the facts and the identity of any person(s) with personal knowledge concerning the facts upon which you base your denial, objection or other answer. b) state the facts, including the identity of any documents that contain such facts and the custodian of these documents, upon which you base your denial, objection, or other answer.

RESPONSE TO INTERROGATORY NO. 4:

Request for Admission No. 4: Taxpayer fully paid taxes due for tax year 1999 by requesting overpayments made in prior years be applied to tax year 1999. The individual with knowledge concerning the facts upon which this denial is made is Ramen Sides, York and Associates, 3600 American River Drive, Suite 135, Sacramento, California, (916) 971-2470. The documents which contain said facts are the tax returns for tax year 1999 and the returns for tax years 1993-1998. These documents are in the possession of the internal Revenue Service.

Request for Admission No. 5: Taxpayer fully paid taxes due for tax year 2000 by requesting overpayments made in prior years be applied to tax year 2001. The individual with knowledge concerning the facts upon which this denial is made is Ramon Sides, York and Associates, 3600 American River Drive, Suite 135, Sacramento, California, (916) 971-2470. The documents which contain said facts are the tax returns for tax year 2000 and the returns for tax years 1993-1998. These documents are in the possession of the internal Revenue Service.

Request for Admission No. 6: Taxpayer fully paid taxes due for tax year 2001 by requesting overpayments made in prior years be applied to tax year 2001. The individual with knowledge concerning the facts upon which this denial is made is Ramon Sides, York and Associates, 3600 American River Drive, Suite 135, Sacramento,

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Case 2:04-04-01997-LKK-GGH Document 305 Filed 04/01/2006 Page 47 of 39

Cese 2:04-cv-01997-LKK-GGH Document 48-2 Filed 04/10/2008 Page 26 of 38

1 Ti-Gas Co.'s address, P.O. Box 364, Walnut Grove, CA 95690, (916) 776-1643: Tashi Homada - Office Manager 3 Tony Benge - Service Technician 4 Stephen Craner - Delivery Driver 5 Felix Guzman - Delivery Driver 6 Doris McQuaid - Administrative Assistant 7 Jason Medlock - Delivery Driver 8 INTERROGATORY NO. 11: 9 Identify all people with knowledge of the taxpayer's involvement with Ti-Gas Co. from January 1, 1993 until the taxpayer's death. 11 RESPONSE TO INTERROGATORY NO. 11: 12 Responding party objects to this interrogatory as being overbroad, burdensome and oppressive, in that "all people with knowledge of the taxpayer's involvement with TI-Gas Co." could include countless numbers of employees, customers, vendors, suppliers, and all employees of any company Ti-Gas did business with. Responding party further objects to this interrogatorv in that it calls for speculation on the nint of the 17 responding party. Responding party is unable to state the knowledge of other people, including whether a particular person has knowledge of taxpayer's involvement with TIGas. Finally, responding party objects to this interrogatory in that it is vague and ambiguous as to the meaning of "taxpayer's involvement with Ti-Gas Co." and that term is not defined. Due to this ambiguity, responding party is unable to provide an answer to this interrogatory as drafted. 23 INTERROGATORY NO. 12: 24 For all residences held by the taxpayer between January 1, 1993 and the taxpayer's death, state: (1) the amount of the monthly mortgage payment, (2) the method payment used to pay the mortgage, (3) every month the mortgage payment was late and why, and (4) if an individual (other than the taxpayer) paid the mortgage, Identify the individual and which month(s) that individual paid the taxpayer's mortgage.

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1 RESPONSE TO INTERROGATORY NO. 12:

Responding party objects to this interrogatory in that it is vague and ambiguous as to the meaning of "held by," and "held by" is not defined. Notwithstanding this objection, and without waiving it, treating "held by" as meaning "owned by," responding party answers as follows:

Tazpayer did not own any residences between January 1, 1993, and his death. INTERROGATORY NO. 13:

Identify the source of the following funds the taxpayer deposited with the IRS: (a) $$ 36, 000$ deposited on or around April 15, 1994 for the 1993 tax year (b) $$ 41, 000$ deposited on or around April 15, 1995 for the 1994 tax year (c) $$ 40, 000$ deposited on or around April 15, 1996 for the 1995 tax year RESPONSE TO INTERROGATORY NO. 13: Responding party objects to this interrogatory because it calls for speculation on the part of the responding party. Responding party lacks sufficient information to answer this interrogatory as he does not know the source of the funds taxpayer used for the payments in question.

17 INTERROGATORY NO. 14:

Please explain why the taxpayer deposited the following amounts with the IRS: (a) $$ 36, 000$ on or around April 15, 1994 for the 1993 tax year, (b) $$ 41, 000$ on or around April 15, 1995 for the 1994 tax year, and (c) $$ 40, 000$ on or around April 15, 1996 for the 1995 tax year.

RESPONSE TO INTERROGATORY NO. 14:

Responding party objects to this interrogatory because it calls for speculation on the part of the responding party. Responding party lacks sufficient information to answer this interrogatory as he does not have personal knowledge as to why the taxpayer made the payments listed.

INTERROGATORY NO. 15:

For the time period between January 1, 1993 and the taxpayer's death, describe (10682/11017/WSC/821958.DOC;)

*49 Case 2:04-04-01997-LKK-56H-11444-DO10:00:00:00 5 Filed 03/01/2006 Page 48 of 59 Case 2:04-cv-01997-LKK-GGH Document 48-2 Filed 04/10/2008 Page 28 of 38 the taxpayer's annual transportation expenses. In the description for each tax year include: (1) the type of car owned by the taxpayer, (2) the monthly payment on the car, (3) any insurance payments, (4) miles driven per year, and (5) the status of the taxpayer's driver's license. RESPONSE TO INTERROGATORY NO. 15: Responding party is informed and believes that taxpayer did not own a car at any time between January 1, 1993 and his death. Responding party is further informed and believes that taxpayer's driver's license was suspended in or around the year 2000 as a result of a conviction for driving under the influence of alcohol. INTERROGATORY NO. 16: List the following for all bank accounts which were, between January 1, 1993, and the taxpayer's death, either: (1) in the taxpayer's name or (2) associated with the taxpayer in any way. (a) bank name (b) account number (c) orimary puroose of the account (d) all individuals authorized to sign checks from the account

RESPONSE TO INTERROGATORY NO. 16: Responding party is informed and believes that taxpayer did not have a bank account in his name during the time in question. He did, however, maintain an account in TI-Gas Co.'s name at Bank of Rio Vista, account number 1605891. Responding party is aware of no specific "primary purpose" for this account. Responding party is informed and believes that the only individual authorized to sign checks on this account was the taxpayer himself. INTERROGATORY NO. 17(a): Please state the amount of refund, calculated independently of any other tax year(s), claimed by the estate of the taxpayer for each of the following tax years: (1) 1993 (10682/11017/WSC/821958.DOC.)

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*55 Case 2:04-04-01997-LKK-556C1 Document 307 Filed 03/01/2006 Page 55 of 59 Case 2:04-cv-01997-LKK-GGH Document 48-2 Filed 04/10/2006 Page 34 of 38

Request for Admission No. 8: The tax returns filed in each of the years in question was not the only claim for refund filed. The tax returns represented one such request, but this was followed by subsequent requests to the Internal Revenue Service, including the letter from Ramon Sides written on July 28, 2003. A copy of this letter was included as Exhibit A to the complaint in this matter.

Dated: June 30, 2005 weintraub genshlea chediak sproui a law corporation

Attomeys for Plaintiff Bruce A. Tison, Administrator for the Estate of Charles G. Tison

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VERIFICATION

I am the executor/administrator for the estate of Charles G. Tison. I have read the foregoing Response of Plaintiff Bruce A. Tison, Executor/Administrator for the Estate of Charles G. Tison to Defendant's First Set of Interrogatories and know its contents. I am Informed and believe and on that ground alloge that the matters stated therein are true.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on June 30, 2005 at Sacramento, California.

$\frac{Anu 03_{on}}{Bruce A. Tison}$

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Case 2:04-01097-LKKGGHGI DdGUHNPE5857F1880564/2008 Page 38 of 38

1 Rule allows a party to propound a maximum of 25 interrogatorles, including discrete subparts. The defendant's First Set of Interrogatories contains a total of at least fifty (50) separate interrogatories when discrete subparts are counted. Notwithstanding this objection, and without waiving it, responding party submits the following supplemental response to defendant's first set of interrogatorles:

RESPONSES TO INTERROGATORIES

INTERROGATORY NO. 16:

List the following for all bank accounts which were, between January 1, 1993, and the taxpayer's death, either: (1) in the taxpayer's name or (2) associated with the taxpayer in any way. (a) bank name (b) account number (c) primary purpose of the account (d) all individuals authorized to sign checks from the account

RESPONSE TO INTERROGATORY NO. 16:

Responding party is informed and believes that taxpayer did not have a bank account in his name during the time in question. He did, however, maintain an account in Ti-Gas. Co.'s name at Bank of Rio Vista, account number 1605891. Responding party is aware of no specific "primary purpose" for this account. Responding party is informed and believes that the only individual authorized to sign checks on this account was the taxpayer himself.

//

$1 /$ $1 /$ $1 /$ $1 /$ $1 /$ $1 /$ (10682/13949/WSC/832363.DOC;)

*59 Case 2:04-cv-01997-LKK-GGH Document 57 Filed 05/18/06 ..... Page 59 of 59 Case 2:04-cv-01997-LKK-GGH ..... Document $48 - 2$ Filed 04/10/2006 Page 38 of 38 SUPPLEMENTAL RESPONSE TO INTERROGATORY NO. 16: Responding party has determined that Toshiko Hamada, Ti-Gas' office manager,was given authority to sign checks drawn on the Ti-Gas checking account in 1997. Dated: August 13, 2005 waintraub genshlea chedlak sp:roul a law corporation

Attorneys for Plaintiff Bruce A. Tison, Administrator for the Estate of Charles G. Tison

I. JURISDICTION/VENUE

II. JURY/NON-JURY

III. UNDISPUTED FACTS

V. DISPUTED EVIDENTIARY ISSUES

VI. RELIEF SOUGHT

Plaintiff seeks the following:

VII. POINTS OF LAW

VIII. ABANDONED ISSUES

IX. WITNESSES

X. EXHIBITS, SCHEDULES AND SUMMARIES

XI. DISCOVERY DOCUMENTS

Case 2:04-cv-01997-LKK-GGH Document 57 Filed 05/18/06 Page 19 of 59

XXIII. MODIFICATIONS TO PRETRIAL ORDER

EXHIBIT A: WITNESS LIST

EXHIBIT B: EXHIBIT LIST

RESPONSES TO REQUESTS FOR ADMISSION

2

REQUEST NO. 1:

VERIFICATION

EXHIBIT D

Case 2:04-cv-01997-LKK-GGH Document 30 ? Filed 04/01/2006 Page 40 of 39

Case 2:04-04-01997-LKK-GGH Document 38 - Filed 03/01/2008 Page 41 of 38

INTERROGATORY NO. 3:

RESPONSE TO INTERROGATORY NO. 3:

1 INTERROGATORY NO. 4:

RESPONSE TO INTERROGATORY NO. 4:

Case 2:04-04-01997-LKK-GGH Document 305 Filed 04/01/2006 Page 47 of 39

1 RESPONSE TO INTERROGATORY NO. 12:

17 INTERROGATORY NO. 14:

RESPONSE TO INTERROGATORY NO. 14:

INTERROGATORY NO. 15:

VERIFICATION

Anu 03 on Bruce A. Tison

Case 2:04-01097-LKKGGHGI DdGUHNPE5857F1880564/2008 Page 38 of 38

RESPONSES TO INTERROGATORIES

INTERROGATORY NO. 16:

RESPONSE TO INTERROGATORY NO. 16:

//

$\frac{Anu 03_{on}}{Bruce A. Tison}$