United States of America v. Real Property Located in Beverly Hills, California

Filing 85


Download PDF
1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE CENTRAL DISTRICT OF CALIFORNIA 10 11 12 WESTERN DIVISION UNITED STATES OF AMERICA, No. CV-16-5363-DSF (PLAx) Plaintiff, [CONSENT JUDGMENT OF FORFEITURE 13 v. 14 REAL PROPERTY LOCATED IN BEVERLY HILLS, CALIFORNIA, 15 16 17 18 19 Defendant. NEIL MOFFITT and 1169 NORTH HILLCREST, LLC. Claimants. 20 21 On July 20, 2016, Plaintiff United States of America 22 (“Plaintiff” or the “United States”) commenced this action, and 23 notice was given and published in accordance with law. 24 Neil Moffitt (“Moffitt”) and 1169 North Hillcrest, LLC (collectively, 25 “Claimants”) filed the only claims to the defendant real property 26 located in Beverly Hills, California (the “Defendant Real Property”). 27 No other claims or answers have been filed, and the time for filing 28 such claims and answers has expired. Claimants 1 Now, the parties have reached an agreement that is dispositive 2 of the claims to the Defendant Real Property. 3 Stipulation and Request for a Consent Judgement, and for good cause 4 shown, IT IS ORDERED, ADJUDGED AND DECREED: 5 6 A. This Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1345 and 1355, and over the parties hereto. 7 8 Based on the parties’ B. The Verified Complaint for Forfeiture states a claim for relief pursuant to 18 U.S.C. § 981(a)(1)(A) and (C). 9 C. Notice of this action has been given in accordance with 10 law. 11 than Claimants are deemed to have admitted the allegations of the 12 Complaint. 13 to establish a basis for forfeiture. 14 All potential claimants to the Defendant Real Property other D. The allegations set out in the Complaint are sufficient The net proceeds of the sale of the Defendant Real Property 15 shall be held in the client trust account of Claimants’ attorney, 16 Ronald Richards, Ronald Richards and Associates, A.P.C., Beverly 17 Hills, California (the “IOLTA Account”), pending distribution as 18 follows: 19 a. Forthwith, Moffitt shall file Internal Revenue Service 20 (“IRS”) Form 1040 for tax year 2016, correctly reporting all taxable 21 income received and allowable deductions. 22 with the IRS in its efforts to examine his Forms 1040 for tax year 23 2016 and Moffitt’s previously filed Form 1040 for tax year 2015. 24 Specifically, Moffitt shall continue to provide the IRS with any 25 information or documents requested to substantiate the items reported 26 on said Forms 1040. 27 28 b. Moffitt shall cooperate Moffitt shall fully cooperate with the IRS in its assessment and collection of the tax liabilities reported on the 2 1 Forms 1040 described in sub-paragraph a, as well as the statutory 2 interest and penalties related to such tax liabilities, as 3 applicable. 4 c. Moffitt waives all defenses to the assessment and/or 5 collection of the tax liabilities reported on the Forms 1040 6 described in sub-paragraph b, as well as statutory interest and 7 penalties related to said tax liabilities, including any defense 8 based on the expiration of the period of limitations on assessment or 9 collection. With respect to tax liabilities reported on the Forms 10 1040 described in sub-paragraph b, and statutory interest and 11 penalties related to said tax liabilities. 12 to Collection Due Process (“CDP”) hearings before the Office of 13 Appeals under I.R.C. §§ 6320 and 6330. 14 rights to hearings before the Office of Appeals, including hearings 15 under the Collection Appeals Program (“CAP”), and Appeals 16 consideration of the rejection or termination of any alternative 17 payment proposal. 18 Appeals consideration of the merits of the underlying liability and 19 any matters concerning collection of the tax liability, including any 20 challenges to Notices of Federal Tax liens or levies, and challenges 21 to termination of an installment agreement, payment extension, 22 rejected or defaulted Offer in Comprise or other promises regarding 23 payment. 24 appeal rights that are waived by this agreement, including the right 25 to receive CDP notices under I.R.C. §§ 6330 and 6330. 26 all restrictions on levy under I.R.C. §§ 6330 and 6331. 27 Notwithstanding any other language herein, Moffitt retains his rights 28 in accordance with Section 6404 of the Internal Revenue Code of 1986, Moffitt waives all rights Moffitt waives all other This waiver includes the waiver of all rights to Moffitt further waives the right to receive notices of 3 Moffitt waives 1 as amended, to seek abatements of any interest and penalties on tax 2 assessments for tax years 2015 and 2016. 3 d. Following Moffitt’s filing of Form 1040, as described 4 above in sub-paragraph a, sufficient funds from the IOLTA Account 5 shall be directed to the IRS to fully pay Moffitt’s tax liabilities 6 as identified in Forms 1040 for tax years 2015 and 2016 as well as 7 $562,107, which amount is the estimated interest due the IRS 8 resulting from Moffitt’s tax liability for tax year 2015. 9 e. From the date the IRS receives the funds described in 10 sub-paragraph d, the IRS shall have six months to determine whether 11 any additional tax liabilities or interest are owed for 2015 and/or 12 2016, and $500,000 from the proceeds of the sale of the Defendant 13 Real Property shall be held and remain in the IOLTA Account during 14 such time (the “Remainder Funds”). 15 should the IRS determine that any additional tax liability or 16 interest is owed, the amount of such liability promptly shall be 17 directed from the IOLTA Account to the IRS to fully satisfy such 18 liabilities and/or interest. 19 discrepancy should the Remainder Funds be insufficient to satisfy any 20 interest, debt, or liability to the IRS. 21 month period, the IRS has not completed its determination of 22 additional liabilities or interest due, or if the IRS determines no 23 additional liability or interest is due, the Remainder Funds shall be 24 released to Claimants. 25 Judgment does or shall prohibit or restrain the IRS from seeking 26 additional liabilities or interest due, notwithstanding whether the 27 IRS makes any determination within the six-month period described 28 herein. During this six-month period, Moffitt shall be responsible for any If, following this six- Neither this Stipulation nor the Proposed Further, for all years, including tax years 2015 and 2016, 4 1 nothing in this Stipulation or the proposed Judgment shall prohibit 2 or in any way impede the IRS from assessing and collecting any and 3 all tax liabilities, additions to tax, penalties, and interest, all 4 of which rights and obligations to assess and collect are hereby 5 reserved. 6 f. Following the payment of funds to the IRS described in 7 sub-paragraph d, and subject to the reservation of the Remainder 8 Funds described in sub-paragraph e, any surplus funds from the sale 9 proceeds of the Defendant Real Property shall be released to 10 Claimants. 11 12 E. costs. 13 14 Each of the parties shall bear its own attorney’s fees and F. The Court shall retain jurisdiction to enforce this Judgment. 15 G. The Court finds that there was reasonable cause for the 16 institution of these proceedings. This judgment shall be construed 17 as a certificate of reasonable cause pursuant to 28 U.S.C. § 2465. 18 19 5/30/17 20 DATE HONORABLE DALE S. FISCHER UNITED STATES DISTRICT JUDGE 21 22 SIGNATURE OF PARTIES ARE ON NEXT PAGE 23 24 25 26 27 28 5 1 Approved as to form and content: 2 DATED: May __, 2017 DEBORAH CONNOR Acting Chief, MLARS 3 SANDRA R. BROWN Acting United States Attorney 4 5 6 JOHN J. KUCERA CHRISTEN A. SPROULE Assistant United States Attorneys 7 8 WOO S. LEE Deputy Chief, MLARS KYLE R. FREENY Trial Attorney, MLARS 9 10 11 Attorneys for Plaintiff UNITED STATES OF AMERICA 12 13 14 15 DATED: May __, 2017 NEIL MOFFITT, Both in his individual capacity and on behalf of 1169 Hillcrest, LLC 16 17 18 DATED: May __, 2017 19 20 JOHN PAPPALARDO, Attorney for Claimants Neil Moffitt and 1169 Hillcrest, LLC 21 22 23 24 25 26 27 28 6

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.

Why Is My Information Online?