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)

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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

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