United States of America et al v. Augusto

Filing 4

ORDER TO SHOW CAUSE Order to Show Cause Hearing set for 11/14/2011 09:00 AM. Show Cause Response due by 10/31/2011. Reply due by 11/7/11. Signed by Judge James Ware on 9/19/11. (sis, COURT STAFF) (Filed on 9/19/2011)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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SAN FRANCISCO DIVISION

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United States of America, et al.,

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NO. C 11-04416 JW

Petitioners,

ORDER TO SHOW CAUSE

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Christopher J. Augusto,
For the Northern District of California

United States District Court

v.
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Respondent.
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Presently before the Court is Petitioner’s Verified Petition to Enforce Internal Revenue

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Service Summonses. (hereafter, “Petition,” Docket Item No. 1.) In addition, Petitioner has filed a

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Proposed Order to Show Cause Re Enforcement of Internal Revenue Service Summonses. (Docket

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Item No. 3.) To date, no response to the Petition has been filed.

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The IRS is authorized to summon a person for “the purpose of ascertaining the correctness of

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any return, making a return where none has been made . . . or collecting any such liability.” 26

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U.S.C. § 7602(a). To enforce a summons, the IRS must establish a prima facie case for enforcement

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by showing that the summons (1) is issued for a legitimate purpose, (2) seeks information relevant to

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that purpose, (3) seeks information that is not already in the possession of the IRS, and (4) satisfies

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all of the administrative steps set forth in the Internal Revenue Code.1 United States v. Powell, 379

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U.S. 48, 57-58 (1964). Before enforcement is ordered, the taxpayer is entitled to an adversary

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hearing. Id. at 58.

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In order to satisfy all of the administrative steps set forth in the Internal Revenue Code, the
IRS Commissioner’s Secretary or Delegate must: (1) determine that further examination is necessary
after the investigation; and (2) notify the taxpayer in writing to that effect. Powell, 379 U.S. at 58.

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Accordingly, good cause having been shown by Petitioners, the Court ORDERS as follows:

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(1)

Respondent Christopher J. Augusto shall appear before this Court on November 14,

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2011 at 9:00 a.m. in Courtroom 9, 19th Floor, United States District Court, 450

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Golden Gate Avenue, San Francisco, California, to show cause, if any, why

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Respondent should not be compelled to appear and provide documents and testimony

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as required by the summonses served upon Respondent as alleged in the Petition.

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(2)

Petitioners shall serve a copy of this Order to Show Cause, together with a copy of

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the Petition, upon Respondent in accordance with Rule 4 or the Federal Rules of Civil

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Procedure at least thirty-five days before the return date of this Order.
(3)

On or before October 31, 2011, Respondent may file and serve a written response to

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For the Northern District of California

United States District Court

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the Petition, supported by appropriate affidavits or declarations in conformance with

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28 U.S.C. § 1746, as well as any motion Respondent desires to make.

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(4)

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On or before November 7, 2011, Petitioners may file and serve a written reply to
such a response or motion, if any.

(5)

All motions and issues raised by the pleadings will be considered on the return date

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of this Order, and only those issues raised by motion or brought into controversy by

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the responsive pleadings and supported by affidavits or declarations will be

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considered. Any uncontested allegation in the pleading will be deemed admitted.

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Dated: September 19, 2011
JAMES WARE
United States District Chief Judge

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THIS IS TO CERTIFY THAT COPIES OF THIS ORDER HAVE BEEN DELIVERED TO:

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Blake D. Stamm [e-mail]

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Christopher J. Augusto
8 Wyworry Ct.
Novato, CA 94947

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Dated: September 19, 2011

Richard W. Wieking, Clerk

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For the Northern District of California

United States District Court

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By:

/s/ JW Chambers
Susan Imbriani
Courtroom Deputy