United States v. Burrell et al
Filing
1
COMPLAINT to Reduce Federal Tax Assessments to Judgment against All Defendants by United States. Attorney Jennings, Guy Patrick added. (Attachments: # 1 Civil Cover Sheet)(Jennings, Guy)
1
JOHN A. DICICCO
Principal Deputy Assistant Attorney General
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
BENJAMIN B. WAGNER
United States Attorney
9
Of Counsel
10
IN THE UNITED STATES DISTRICT COURT FOR THE
11
EASTERN DISTRICT OF CALIFORNIA
12
UNITED STATES OF AMERICA,
Plaintiff,
13
v.
14
15
16
STANLEY K. BURRELL;
STEPHANIE D. BURRELL;
IMAGE, LIKENESS, POWER LLC;
Defendants.
17
)
)
)
)
)
)
)
)
)
)
)
)
Civil No.
COMPLAINT TO REDUCE FEDERAL
TAX ASSESSMENTS TO
JUDGMENT
18
COMES NOW, the United States of America, by its undersigned counsel, and for its
19
20
complaint alleges as follows:
JURISDICTION AND VENUE
21
22
1.
23
federal tax assessments against Stanley K. Burrell and Stephanie D. Burrell (“taxpayers”); and
24
(b) for a charging order against Image, Likeness, Power LLC to enforce the judgment.
25
2.
26
the request and with the authorization of the Chief Counsel of the Internal Revenue Service, a
27
delegate of the Secretary of the Treasury, pursuant to 26 U.S.C. §§ 7401 and 7403.
28
This is a civil action brought by the United States of America (a) to reduce to judgment
This action is brought at the direction of the Attorney General of the United States and at
1
3.
This Court has jurisdiction over this action pursuant to 28 U.S.C. §§1340 and 1345, and
2
pursuant to §§ 7402 and 7403 of the Internal Revenue Code (26 U.S.C.).
3
4.
4
1396 because the taxpayers reside within this judicial district, in the city of Tracy, in San
5
Joaquin County, California.
Venue is proper in the Eastern District of California under 28 U.S.C. §§ 1391(b) and
THE DEFENDANTS
6
7
5.
Stanley K. Burrell and Stephanie D. Burrell, husband and wife, reside within this judicial
8
district and the jurisdiction of the Court.
9
6.
Image, Likeness, Power LLC has its principal place of business within this judicial district
10
and the jurisdiction of the Court. Image, Likeness, Power LLC is a limited liability company
11
solely owned by Stanley K. Burrell.
12
FIRST CLAIM FOR RELIEF:
13
TO REDUCE TO JUDGMENT FEDERAL TAX ASSESSMENTS
14
AGAINST STANLEY K. BURRELL AND STEPHANIE D. BURRELL
15
7.
The United States incorporates by reference the allegations contained in paragraphs 1
16
through 6, above, as if fully set forth here.
17
8.
18
of the Treasury made timely joint assessments against Stanley K. Burrell and Stephanie D.
19
Burrell for individual federal income taxes, penalties, interest, and other statutory additions for
20
the taxable years set forth below:
On dates and for the amounts listed below, a duly authorized delegate of the Secretary
21
22
23
24
25
26
27
28
-2-
Complaint
1
2
4
Tax Period
Ending
Assessment
Date
1040
12-31-1996
11-24-1997
$255,211.00
13,584.00
14,424.27
14.00
63,802.75
T
ETP
I
F
FTP2
$739,189.92
1040
3
Amount
Assessed
Type1
Type
of Tax
12-31-1997
04-19-1999
$12,390.00
1,119.34
603.00
3,097.50
2787.75
T
I
ETP
FTP
LFP
$40,395.43
5
6
7
8
9
Unpaid Balance
as of 12-31-2011
TOTAL
779,585.35
10
11
9.
This suit to collect the tax liabilities was filed within the period of limitations for filing a tax
12
collection suit, as suspended by the taxpayers’ bankruptcy. The taxpayers filed a Chapter 11
13
bankruptcy petition on April 1, 1996. The taxpayers filed the joint individual income tax return
14
for 1996 on October 16, 1997, pursuant to extensions, and the 1997 tax return thereafter. The
15
Chapter 11 bankruptcy case was converted to a Chapter 7 case on September 23, 1998. The
16
taxpayers were denied discharge of all debts in their Chapter 7 case on April 23, 2002. The
17
running of the 10-year period to file a collection suit was suspended from date of conversion,
18
September 23, 1998, to the date the discharge was denied, April 23, 2002, plus six months,
19
pursuant to 26 U.S.C. § 6503(h).
20
10.
Timely notice of and demand for payment of the assessments set forth above in
21
paragraph 8 was made upon Stanley K. Burrell and Stephanie D. Burrell, as required by
22
Section 6303 of the Internal Revenue Code, Title 26 of the United States Code.
23
24
1
Key: T = Tax
I = Interest Assessed
ETP = Estimated Tax Penalty
LFP = Late Filing Penalty
FTP = Failure to Pay Tax Penalty
F = Fees and Collection Costs
2
Failure to Pay Tax Penalties assessed on various dates.
-3-
25
26
27
28
Complaint
1
11.
Despite notice and demand for payment of the assessments set forth above in
2
paragraph 8, the taxpayers have neglected, refused, or failed to pay the tax assessments
3
against them and, as of December 31, 2011, there remains due and owing to the United States
4
on those assessments the total sum of $779,585.35 plus statutory interest and other statutory
5
additions as provided by law.
6
SECOND CLAIM FOR RELIEF:
7
FOR A CHARGING ORDER AGAINST
8
IMAGE, LIKENESS, POWER LLC
9
12.
The United States incorporates by reference the allegations contained in paragraphs 1
10
through 11, above, as if fully set forth here.
11
13.
12
performances through his solely-owned limited liability company, Image, Likeness, Power LLC.
13
Mr. Burrell has reported the activities of Image, Likeness, Power LLC on his personal tax
14
return.
15
14.
16
company owned by a judgment debtor. Cal. Corp. Code § 17302.
17
15.
18
judgments. 26 U.S.C. §§ 7402 and 7403. The Court is respectfully requested to order that the
19
interest of Stanley K. Burrell and, if any, the interest of Stephanie D. Burrell in Image, Likeness,
20
Power LLC be charged to satisfy the federal tax judgment entered in this case and to order the
21
LLC and all members to pay any money or property due or to become due to the taxpayers
22
directly to the United States until the amount remaining due on the judgment, plus all accrued
23
interest and costs thereon, is paid in full.
Defendant Stanley K. Burrell is a musical artist and performer who contracts for
A court may enter a charging order against the membership interest in a limited liability
This Court may enter orders to enforce the internal revenue laws and enforce federal tax
24
WHEREFORE, the United States prays as follows:
25
A. That this Court determine and adjudge that defendants Stanley K. Burrell and
26
Stephanie D. Burrell are indebted, jointly and severally, to the United States in the amount of
27
$779,585.35 for unpaid individual federal income tax plus interest and other statutory additions,
28
less any additional credits according to proof, plus interest and other statutory additions, as
-4Complaint
1
provided by law, that accrue after December 31, 2011, until the date of payment, and that
2
judgment in that amount be entered against the defendants and in favor of the United States;
3
B. That this Court order that Image, Likeness, Power LLC, and its agents or
4
representatives, pay to the United States any money payable to, or for the benefit of, or
5
assignable by Stanley K. Burrell or Stephanie D. Burrell, if any, until the judgment in this case is
6
satisfied;
7
C.
8
9
10
That this Court determine and adjudge that the United States has valid liens against
all property and rights to property of Stanley K. Burrell and Stephanie D. Burrell; and
D. That the United States be granted its costs and attorney's fees herein, and for such
other and further relief as this Court deems just and proper.
11
JOHN A. DiCICCO
Principal Deputy Assistant Attorney General
12
13
14
15
16
17
Date: November 21, 2011
/s/ G. Patrick Jennings
G. PATRICK JENNINGS
Trial Attorney, Tax Division
U.S. Department of Justice
P.O. Box 683
Ben Franklin Station
Washington, D.C. 27044
Telephone: (202) 307-6648
18
Of Counsel:
19
20
BENJAMIN B. WAGNER
United States Attorney
21
22
23
24
25
26
27
28
-5-
Complaint
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?