United States of America v. Marquez et al

Filing 26

ORDER CONTINUING CMC. Signed by Judge Maria-Elena James on 2/5/2009. (mejlc1, COURT STAFF) (Filed on 2/5/2009)

Case 3:08-cv-00891-MEJ

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JOSEPH P. RUSSONIELLO (CSBN 44332) United States Attorney THOMAS MOORE (ASBN 4305-O78T) Assistant United States Attorney Chief, Tax Division DAVID L. DENIER (California State Bar No. 95024) Assistant United States Attorney 9th Floor Federal Building 450 Golden Gate Avenue, Box 36055 San Francisco, California 94102 Telephone: [phone] Fax: [phone] Attorneys for the United States of America

8 UNITED STATES DISTRICT COURT FOR THE 9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION 11 UNITED STATES OF AMERICA, 12 Plaintiff, 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The parties to the above-entitled action jointly submit this updated Case Management Statement. This is an action to reduce to judgment certain tax assessments made against defendants Jesus and Olga Marquez, Ramon and Juanita Marquez, Taqueria Los Primos, and Taqueria Los Primos No. 2; and to foreclose certain federal tax liens against the real property located at 791 South Johnston Street, Half Moon Bay, California 94019. ///
Joint CM S & Proposed Order N o . C-08-0891-CW

v. JESUS MARQUEZ, OLGA MARQUEZ, RAMON MARQUEZ, JUANITA MARQUEZ, TAQUERIA LOS PRIMOS, TAQUERIA LOS PRIMOS NO. 2, LUIS GALINDO, MARTHA GALINDO, BANK OF AMERICA, N.A., STATE OF CALIFORNIA FRANCHISE TAX BOARD, STATE OF CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT, STATE OF CALIFORNIA BOARD OF EQUALIZATION, STATE OF CALIFORNIA DEPARTMENT OF LABOR, SAN MATEO COUNTY TAX COLLECTOR, Defendants.

) ) No. C-08-0891-MEJ ) ) UPDATED JOINT CASE ) MANAGEMENT STATEMENT ) ) ) ) DATE: FEBRUARY 12, 2009 ) TIME: 10:00 A.M. ) ) ) ORDER CONTINUING CMC ) ) ) ) ) )

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Jesus and Ramon Marquez are brothers and partners in Taqueria Los Primos, 85 North B Street, San Mateo, California 94401, and Taqueria Los Primos No. 2, 376 N. Ellsworth Avenue, San Mateo , California 94401. Both partnerships have outstanding employment tax liabilities. Also, both partnerships continue to accrue FICA and withholding tax liabilities(Form 941) and federal unemployment tax liabilities (Form 940). They are also delinquent in filing some of their Employer's Quarterly Federal Tax Returns (Form 941), Employer's Annual Federal Unemployment Tax Returns (Forms 940), and U.S. Return of Partnership Income (Form 1065). Jesus and Olga Marquez and Ramon and Juanita Marquez have outstanding federal income tax liabilities. Both couples file their federal income tax returns jointly. Notices of Federal Tax Liens have been filed for the tax periods as set forth in the complaint. Additionally, Defendants Employment Development Department, Franchise Tax Board, and State Board of Equalization have recorded tax liens against the subject real property. The real property that is the subject of the foreclosure action , 791 South Johnston Street, Half Moon Bay, California 94019, is the residence of Jesus and Olga Marquez as well as the residence of Ramon and Juanita Marquez. Jesus and Olga hold a forty-five percent interest in the residence as joint tenants with each other. Ramon and Juanita Marquez hold a forty-five percent interest in the residence as joint tenants with each other. The remaining ten percent is allegedly held by Luis and Martha Galindo as joint tenants with each other. The couples' 45%, 45% and 10% interests are held as tenants in common. The Galindos do not reside at the foreclosure property, nor do they owe any federal taxes. The parties are informed that the Galindos were on title solely to assist the Marquez couples in obtaining financing and do not claim an interest in the property. Defendants Jesus and Olga Marquez, Ramon and Juanita Marquez, Taqueria Los Primos, and Taqueria Los Primos No. 2 do not contest the tax liabilities. They have attempted to obtain a home equity line of credit secured by the real property to pay off the tax debts, but they have been unsuccessful. The Marquezes now wish to attempt to sell the home themselves because they are likely to receive more from a private sale than a foreclosure. The creditors are willing to allow them a reasonable time to sell the property, but expect the Marquezes to proceed expeditiously.
Joint CM S & Proposed Order N o . C-08-0891-CW

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The Marquezes recently met with Coldwell Banker and are in the process of entering into a listing agreement with Coldwell Banker. The proposed listing agreement would be for 120 days. The market price suggested by Coldwell Banker appears reasonable to the parties. The Marquezes will provide a copy of the listing agreement to the other parties once it has been executed. The parties suggest that the matter be set for a further case management conference on June 18, 2009, to report back to the Court on the Marquezes' efforts to sell the property. Once the property is sold, the only real issue is the priority of lien holders with respect to the property. It is anticipated that the lien holders will be able to agree to their respective priorities.

JOSEPH P. RUSSONIELLO United States Attorney Dated: February 5, 2009 /s/ David L. Denier DAVID L. DENIER Assistant United States Attorney Tax Division Attorneys for United States of America

Dated: February 5, 2009

/s/ Cindy L. Ho CINDY L. HO Attorney for Defendants Jesus Marquez, Olga Marquez, Ramon Marquez, Juanita Marquez, Luis Galindo, Martha Galindo, Taqueria Los Primos and Taqueria Los Primos No. 2 MICHAEL MURPHY County Counsel

Dated: February 5, 2009

/s/ Eugene Whitlock EUGENE WHITLOCK Deputy County Counsel Attorney for County of San Mateo Tax Collector

Joint CM S & Proposed Order N o . C-08-0891-CW

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Joint CM S & Proposed Order N o . C-08-0891-CW

EDMUND G. BROWN JR. Attorney General of the State of California

Dated: February 5, 2009

/s/ Karen W. Yiu KAREN W. YIU Deputy Attorney General Attorneys for Defendants Franchise Tax Board, Employment Development Department, and State Board of Equalization

Good cause appearing, the Court hereby CONTINUES the CMC to June 18, 2009 at 10:00 a.m. in Courtroom B. Dated: February 5, 2009

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