USA v. Smith, et al.

Filing 30

JUDGMENT signed by Judge Oliver W. Wanger on 08/01/2011. CASE CLOSED. (Flores, E)

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1 BENJAMIN B. WAGNER United States Attorney 2 3 4 5 G. PATRICK JENNINGS Trial Attorney, Tax Division U.S. Department of Justice P.O. Box 683, Ben Franklin Station Washington, D.C. 20044-0683 Telephone: (202) 307-6648 E-mail: guy.p.jennings@usdoj.gov 6 Attorneys for the United States of America 7 8 IN THE UNITED STATES DISTRICT COURT FOR THE 9 EASTERN DISTRICT OF CALIFORNIA 10 UNITED STATES OF AMERICA, Plaintiff, 11 v. 12 13 14 15 THOMAS W. SMITH; MBNA AMERICA BANK N.A.; STATE OF CALIFORNIA FRANCHISE TAX BOARD; DAVID K. JACOBS AS TRUSTEE OF THE T & E A TRUST DATED OCTOBER 1, 1993; 16 Defendants. 17 ) ) ) Civil No. 1:10-CV-01193 OWW JLT ) ) ) JUDGMENT IN A CIVIL CASE ) ) ) ) ) ) ) ) ) The plaintiff United States filed a motion for summary judgment (Doc. No. 21). No 18 19 defendant filed an opposition. The motion was heard July 18, 2011. The Court on July 19, 20 2011, entered a dispositive Memorandum Decision and Order re Plaintiff’s Motion for Summary 21 Judgment (Doc. No. 27), granting the motion in part and directing the filing of a proposed 22 judgment. In accordance with the memorandum decision, 23 IT IS ORDERED THAT JUDGMENT IS ENTERED AS FOLLOWS: 24 1. Thomas Wayne Smith is indebted to the United States in the amount of $318,752.47 for 25 individual income tax for the taxable periods ending December 31, 1996, through and including 26 December 31, 2003, plus interest according to 28 U.S.C. § 1961(c) and 26 U.S.C. §§ 6601, 27 6621(a)(2), from June 16, 2011, until the judgment is paid. 28 1 2. The real property that is the subject of this action is located at 5251 West Decatur 2 Avenue, Fresno, California, 93722 (herein referred to as “5251 West Decatur”) in the County of 3 Fresno, State of California, and is more particularly described as follows: 5 Lot 94 of Tract No. 4768, McCaffrey Community No. 7, in the City of Fresno, County of Fresno, State of California, according to the map thereof recorded in Book 60, Pages 45, 46, & 47 of Plats, Fresno County Records. 6 APN: 502-283-3 4 7 3. The T & E A Trust is a sham which lacked economic substance. The T & E A Trust shall 8 be disregarded for purposes of federal tax collection and federal tax determination with respect 9 to Thomas W. Smith. 10 11 12 13 14 4. The transfer of 5251 West Decatur to the T & E A Trust is hereby set aside. Title to the 5251 West Decatur is hereby returned to Thomas W. Smith. 5. The federal tax lien under 26 U.S.C. § 6321 attaches to all property and rights to property of Thomas W. Smith, including but not limited to 5251 West Decatur. 6. The United States is entitled to foreclose its liens and enforce this judgment against the 15 5251 West Decatur and that property will be sold, if necessary, pursuant to further order of this 16 Court. 17 18 19 7. The United States and the California Franchise Tax Board shall establish their relative priorities to 5251 West Decatur upon or before the sale of the property. 8. Each party shall be liable for its own costs of litigation and attorneys' fees. 20 IT IS SO ORDERED. 21 Dated: August 1, 2011 22 _/s/ OLIVER W. WANGER________ OLIVER W. WANGER United States District Judge 23 24 25 26 27 28 -2-

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