United States of America v. Robert C. Wade et al

Filing 61

JUDGMENT by Judge Josephine L. Staton: Reducing Tax Assessments to Judgment 59 . The Court shall retain jurisdiction over this case to enforce the terms of settlement reached by the United States and defendants Robert C. Wade and Susan L. Wade in this case, as memorialized in the stipulation filed with the Court on April 24, 2014. (jtil)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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SOUTHERN DIVISION

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UNITED STATES OF AMERICA,
Plaintiff,
vs.
ROBERT C. WADE., ET. AL.
Defendants.

) Case No. SACV 13-01093- JLS(RNBx)
)
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) JUDGMENT REDUCING TAX
) ASSESSMENTS TO JUDGMENT
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Based on the stipulation between plaintiff United States of America and

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defendants Wade Landscape, Inc., and Robert Wade, Inc., and the previous stipulation

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entered into between the United States of America and defendants Robert C. Wade (now

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deceased) and Susan L. Wade on April 24, 2014, and for good cause appearing herein:

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IT IS ORDERED, ADJUDGED, AND DECREED THAT:

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FIRST CAUSE OF ACTION: REDUCE FEDERAL TAX ASSESSMENTS TO

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JUDGMENT AGAINST WADE LANDSCAPE, INC.
1.

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In its first cause of action, the United States seeks to reduce to judgment the

following federal tax assessments against defendant Wade Landscape, Inc.:
Tax
Tax
Date of
Tax
Type1
Period
Type
Assessment Assessed
12/31/2000 Employment
Taxes (Form
941)

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6/13/2005

3/31/2003

7

8/4/2003

9
10

Employment

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Taxes (Form

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941)

13
6/30/2003

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Employment

15

Taxes (Form

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6/13/2005
9/29/2003

941)
9/30/2005

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Employment

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Taxes (Form

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2/27/2006

941)

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12/31/2003 Unemployment 2/13/2006

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Taxes (Form

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$6,670.36
$1,500.83
$1,000.54
$1,667.59
$2,286.61
$8,203.08
$1,104.40
$147.25
$90.40
$390.12
$9,374.62
$714.25
$47.62
$39.38
$8,103.39
$53.99
$12.00
$15.09
$720.55
$83.86

T
FTF
FTD2
FTP
INT
T
FTD
FTP
INT
T
T
FTD
FTP
INT
T
FTF
FTP
INT
T
I

940)
12/31/2004 Unemployment 4/23/2007

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$1,683.81 T
$168.38
FTF

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Key: T= Tax
FTF = Failure to Timely File Penalty pursuant to 26 U.S.C. § 6651(a)(1)
FTD = Failure to Deposit Penalty pursuant to 26 U.S.C. § 6656
FTP = Failure to Pay Tax Penalty pursuant to 26 U.S.C. § 6651(a)(2)
INT = Assessed Interest
2
Failure to Deposit penalties assessed on various dates.
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2 

1
2

$311.82

Taxes (Form

FTP

940)

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2.

The balances due for Wade Landscape, Inc.’s federal employment (Form

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941) and unemployment (Form 940) taxes for the periods at issue in plaintiff’s first

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cause of action, with interest and penalties calculated through June 30, 2015, are as

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follows:
Tax
Period

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Tax
Type

Balance Due as of
6/30/2015

12/31/2000 Employment Taxes
(Form 941)
3/31/2003 Employment Taxes

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$15,461.60

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$10,646.72

(Form 941)
6/30/2003

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Employment Taxes

$1,609.55

(Form 941)
9/30/2005

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Employment Taxes

$1,180.92

(Form 941)
12/31/2003 Unemployment Taxes

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$1,525.15

(Form 940)
12/31/2004 Unemployment Taxes

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$3,447.55

(Form 940)

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3.

The total balance due for the tax periods listed in paragraph 4 above, with

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interest and penalties calculated through June 30, 2015, totals $33,871.49. Additional

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amounts will continue to accrue after June 30, 2015, as allowed by law.

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4.

The above described balance due to the United States of America, plus

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accrued penalties and interest, is reduced to judgment against defendant Wade

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Landscape, Inc.

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3 

1

SECOND CAUSE OF ACTION: REDUCE FEDERAL TAX ASSESSMENTS TO

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JUDGMENT AGAINST ROBERT WADE, INC.

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5.

In its second cause of action, the United States seeks to reduce to judgment

the following federal tax assessments made against defendant Robert Wade, Inc.:
Tax Period Tax
Date of
Amount
Type
Type
Assessment Assessed
$9,388.65 T
9/30/2006
2/12/2007
Employment
FTF
NONE
Taxes (Form
$2,866.71 FTD
$4,777.87 FTP
941)
INT
$216.44
$9,722.85 T
10/6/2008
12/31/2006 Employment
8/29/2011
$12,987.75 T
$2,922.24 FTF
Taxes (Form
$1,948.15 FTD
$3,246.94 FTP
941)
$4,306.88 INT
3/31/2007
1/5/2009
$9,332.40 T
Employment
$2,099.79 FTF
Taxes (Form
$1,399.86 FTD
$2,333.10 FTP
941)
$1,384.90 INT
6/30/2007
1/5/2009
$10,888.80 T
Employment
$2,449.98 FTF
Taxes (Form
$1,633.32 FTD
$2,722.20 FTP
941)
$1,317.35 INT
9/30/2007
1/5/2009
$10,888.80 T
Employment
$2,449.98 FTF
Taxes (Form
$1,633.32 FTD
$2,722.20 FTP
941)
INT
$750.30
12/31/2007 Employment
12/22/2008 $11,092.29 T
$2,495.77 FTF
Taxes (Form
$1,653.83 FTD
$2,773.87 FTP
941)
$733.35
INT
4 

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3/31/2008

Employment

2

Taxes (Form

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7/13/2009

941)

4

6/30/2008

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941)

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9/30/2008

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Employment

7/13/2009

Taxes (Form

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7/13/2009

Taxes (Form

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8

Employment

941)
12/31/2008

Employment

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Taxes (Form

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4/20/2009

941)

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3/31/2009

Employment

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Taxes (Form

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5/17/2010

941)

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6/30/2009

Employment

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Taxes (Form

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5/17/2010

941)

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9/30/2009

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Employment

5/17/2010

Taxes (Form

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941)

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12/31/2009

Employment

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Taxes (Form

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3/29/2010

941)
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$10,692.78
$2,405.88
$1,603.93
$2,673.19
$829.07
$21,872.94
$4,921.41
$3,280.94
$4,155.85
$1,293.28
$21,927.65
$4,933.72
$3,289.14
$5,481.91
$921.31
$13,456.13
NONE
$798.89
$2,050.48
$46.89
$10,213.23
$1,280.88
$669.96
$1,483.20
$298.13
$9,396.54
$2,114.22
$1,409.47
$2,349.14
$371.68
$9,260.10
$2,083.52
$1,389.00
$2,315.02
$248.82
$10,898.04
NONE
$1,634.80
$2,724.51

T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP

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3/31/2010

Employment

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Taxes (Form

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6/28/2010

941)

5

6/30/2010

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Employment

6/20/2011

Taxes (Form

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941)

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9/30/2010

Employment

10

Taxes (Form

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6/27/2011

941)

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12/31/2010

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6/20/2011

Taxes (Form

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941)

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Employment

3/31/2011

Employment

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Taxes (Form

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10/10/2011

941)

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6/30/2011

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11/21/2011

Taxes (Form

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941)

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Employment

3/31/2012

Employment

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Taxes (Form

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7/2/2012

941)

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12/31/2006

Unemployment 12/28/2009
Taxes (Form
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$68.28
$6,450.26
NONE
$967.51
$1,612.56
$41.84
$8,376.46
$1,708.88
$1,156.97
$1,746.85
$41.84
$13,637.14
$2,529.02
$1,208.99
$2,191.81
$330.57
$9,134.13
$818.02
NONE
$2,191.81
$210.32
$13,500.07
$2,430.01
$2,025.00
$2,025.01
$282.66
$11,932.96
$1,610.95
$1,787.63
$1,491.62
$149.24
$9,466.43
NONE
$796.85
$43.34
$14.96
$8,598.28
$1,934.61
$1,289.74

INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD

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940)

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12/31/2007

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Unemployment 12/28/2009
Taxes (Form

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941)

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12/31/2010

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Employment

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Taxes (Form

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6/20/2011

940)

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6.

$2,149.57
$2,018.14
$14,388.56
$3,237.43
$2,158.27
$3,597.14
$1,779.35
$473.47
$42.61
$52.08
$33.14
$15.58

FTP
INT
T
FTF
FTD
FTP
INT
T
FTF
FTD
FTP
INT

The balances due for the periods at issue in plaintiff’s second cause of

action, with interest and penalties calculated through June 30, 2015, are as follows:

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Tax
Type

Balance Due as
of 6/30/2015

Employment Taxes (Form 941)

$23,502.38
$15,212.06

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12/31/2006 Employment Taxes (Form 941)
3/31/2007 Employment Taxes (Form 941)

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6/30/2007

Employment Taxes (Form 941)

$16,243.21

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9/30/2007

Employment Taxes (Form 941)

$15,504.39

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$15,789.35

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12/31/2007 Employment Taxes (Form 941)
3/31/2008 Employment Taxes (Form 941)

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6/30/2008

Employment Taxes (Form 941)

$5,758.01

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9/30/2008

Employment Taxes (Form 941)

$7,058.68

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$2,899.78

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12/31/2008 Employment Taxes (Form 941)
3/31/2009 Employment Taxes (Form 941)

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6/30/2009

Employment Taxes (Form 941)

$18,314.26

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9/30/2009

Employment Taxes (Form 941)

$17,896.55

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Tax
Period
9/30/2006

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7 

$13,931.48

$17,435.00

$8,519.05

$10,724.00

2

12/31/2009 Employment Taxes (Form 941)
3/31/2010 Employment Taxes (Form 941)

3

6/30/2010

Employment Taxes (Form 941)

$14,221.45

4

9/30/2010

Employment Taxes (Form 941)

$11,138.96

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$13,791.88

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12/31/2010 Employment Taxes (Form 941)
3/31/2011 Employment Taxes (Form 941)

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6/30/2011

Employment Taxes (Form 941)

$20,335.55

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3/31/2012

Employment Taxes (Form 941)

$4,801.90

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12/31/2006 Unemployment Taxes (Form

1

10

940)
12/31/2007 Unemployment Taxes (Form

11
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941)

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12/31/2010 Employment Taxes (Form 940)

$10,541.40

$12,060.86

$487.41
$708.59
$732.65

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7.

The total balance due for the tax periods listed in paragraph 7 above, with

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interest and penalties computed through June 30, 2015, totals $277,608.85. Additional

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amounts will continue to accrue after June 30, 2015, as allowed by law.

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8.

The above described balance due to the United States of America, plus

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accrued penalties and interest, is reduced to judgment against defendant Robert Wade,

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Inc.

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9.

The United States of America and defendants Wade Landscape, Inc. and

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Robert Wade, Inc. shall each bear their own costs and attorney’s fees as against each

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other.

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10.

Under the terms of the stipulation entered into between the United States of

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America and defendants Robert C. Wade (now deceased) and Susan L. Wade on April

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24, 2014, Robert C. Wade and Susan L. Wade acknowledged that they were the alter-

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egos of Wade Landscape, Inc. and Robert Wade, Inc. and that they were jointly and

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severally liable for the federal employment and unemployment tax liabilities at issue in
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the government’s first and second causes of action. Defendants Robert C. Wade and

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Susan L. Wade further agreed that the United States of America was entitled to foreclose

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upon certain real property located at 431 and 441 Osgood Court, Laguna Beach, CA

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92651, in satisfaction of the abovementioned tax liabilities. The United States of

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America in turn agreed, with certain conditions, to forswear its right to foreclose until

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October 1, 2015.

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11.

The Court shall retain jurisdiction over this case to enforce the terms of

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settlement reached by the United States and defendants Robert C. Wade and Susan L.

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Wade in this case, as memorialized in the stipulation filed with the Court on April 24,

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2014.

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IT IS SO ORDERED

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DATED: July 06, 2015

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________________________________
JOSEPHINE L. STATON
United States District Court Judge

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