United States of America v. Caraway et al

Filing 26

ORDER APPROVING STIPULATION AND REQUEST FOR RESCHEDULING OF CASE MANAGEMENT CONFERENCE. The October 9, 2009 Case Management Conference is continued to January 15, 2010 at 10:30 a.m. Signed by Judge Maxine M. Chesney on October 6, 2009. (mmclc2, COURT STAFF) (Filed on 10/6/2009)

1 JOSEPH P. RUSSONIELLO (CSBN 44332) United States Attorney 2 THOMAS MOORE (ASB 4305-T78O) Chief, Tax Division 3 DAVID L. DENIER (CSBN 95024) Assistant United States Attorney 4 450 Golden Gate Ave., Box 36055 San Francisco, CA 94102 5 Telephone: [phone] Facsimile: [phone] 6 E-Mail: [e-mail] 7 Attorneys for the United States of America 8 9 10 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION ) ) Plaintiff, ) ) v. ) ) DOUGLAS R. CARAWAY; FREMONT ) BANK; STATE OF CALIFORNIA ) FRANCHISE TAX BOARD; STATE OF ) CALIFORNIA EMPLOYMENT ) DEVELOPMENT DEPARTMENT; SAN ) JOAQUIN COUNTY DISTRICT ) ATTORNEY'S OFFICE, FAMILY SUPPORT ) DIVISION; CHESTER J. GILBERT; ) COLLECTRONICS, INC.; JOHN ) EGGLI; COLLECTION BUREAU OF ) CALIFORNIA; AMANDA AND FRED ) HUMMEL; STEPHEN CARAWAY; ) FLORENCE LINOR REGE; C. THOMAS ) BISCARDI, ) ) Defendants. ) ) No. C-08-04371-MMC

11 UNITED STATES OF AMERICA, 12 13 14 15 16 17 18 19 20 21 22 23

STIPULATION AND REQUEST FOR RESCHEDULING OF CASE MANAGEMENT CONFERENCE AND ORDER THEREON

Plaintiff United States of America and Defendants Douglas R. Caraway ("Caraway"),

24 Franchise Tax Board ("FTB"), and Employment Development Department ("EDD"), through 25 their respective counsel, stipulate and request that the case management conference, currently 26 scheduled for October 9, 2009, at 10:30 a.m. in Courtroom 7, be rescheduled to January 15, 27 2010, at 10:30 a.m. in Courtroom 7. 28 ///

1

Defendant Caraway previously failed to file income tax returns with the state of

2 California and with the Internal Revenue Service ("IRS") for the years 1998 (FTB only), 1999 3 through and including 2004. Plaintiff United States prepared substitutes for returns ("SFR's") 4 with respect to each of those years based upon income information available to it, and made tax 5 assessments pursuant to the SFR's. Defendants FTB and EDD have recorded state tax liens 6 against Defendant Caraway for tax liabilities believed to be due. 7 Defendant Caraway has delivered to the Franchise Tax Board and to Internal Revenue

8 Service California and federal income tax returns the years 1998 (FTB only), 1999 through 2004, 9 inclusive. These returns were prepared by a paid tax preparer and show a substantial reduction in 10 taxes potentially owed to both agencies. The returns have been assigned agents in examination 11 divisions of the FTB and the IRS. 12 The IRS issued an Information Document Request with respect to the newly filed returns

13 seeking the return preparer's work papers and documentation substantiating the income, 14 expenses and deductions set forth on the returns. The return preparer's work papers have been 15 provided, but no documentation substantiating the entries on the tax returns has been provided. 16 The government has been advised that Mr. Caraway is in the process of assembling the requested 17 documentation and that much of the documentation will have to be retrieved from banks. Once 18 Mr. Caraway has retrieved all of the documentation that he is able to retrieve, the parties intend 19 to arrange a meeting between Mr. Caraway and the agent examining the returns. After the agent 20 has completed his examination, it is hoped that the parties will be able to agree on Mr. Caraway's 21 tax liabilities, a stipulated judgment will be entered, and Mr. Caraway will make arrangements 22 for payment of the tax liabilities. 23 /// 24 /// 25 /// 26 /// 27 /// 28 ///
S t ip . & Req. For Rescheduling o f CMC (No. C-08-04371-MMC) 2

1

The reason for rescheduling the Case Management Conference is to allow additional time

2 for Mr. Caraway to obtain the documentation to support the filed returns and to allow the tax 3 agencies' examination personnel to complete their examinations. 4 5 6 Dated: October 2, 2009 7 8 9 10 Dated: October 1, 2009 11 12 13 14 15 16 Dated: October 2, 2009 17 18 19 20 21 ORDER Pursuant to stipulation, the case management conference in this case shall be rescheduled /s/ KAREN W. YIU Deputy Attorney General Attorneys for Defendants Franchise Tax Board And Employment Development Department EDMUND G. BROWN JR. Attorney General of California JOYCE E. HEE Supervising Deputy Attorney General /s/ WILLIAM E. TAGGART, JR. Taggart & Hawkins P.C. Attorneys for Defendant Douglas R. Caraway /s/ DAVID L. DENIER Assistant United States Attorney Tax Division Attorneys for Plaintiff United States of America JOSEPH P. RUSSONIELLO United States Attorney

22 for January 15, 2010, 10:30 a.m., in courtroom 7. 23 24 October 6, 2009 25 Dated: _____________ 26 27 28
S t ip . & Req. For Rescheduling o f CMC (No. C-08-04371-MMC) 3

___________________________________ UNITED STATES DISTRICT JUDGE