United States of America v. Veghte

Filing 25

STIPULATION AND ORDER re 24 STIPULATION WITH PROPOSED ORDER to Transfer Action to the United States District Court for the Western District of Washington filed by William L. Veghte. Signed by Judge Jon S. Tigar on January 16, 2015. (wsn, COURT STAFF) (Filed on 1/16/2015)

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Scott H. Frewing, SBN 191311
BAKER & McKENZIE LLP
660 Hansen Way
Palo Alto, CA 94304-1044
Telephone: [phone]
Facsimile: +1.650 856.9299
[e-mail]

DAVID A. HUBBERT
Deputy Assistant Attorney General
NOREENE STEHLIK (DC Bar No. 394479)
Senior Litigation Counsel, Tax Division
JEREMY HENDON (OR Bar No. 982490)
AMY MATCHISON (CA Bar No. 217022)
Trial Attorneys, Tax Division
U.S. Department of Justice
P.O. Box 683, Ben Franklin Station
Washington, DC 20044-0683
Email: [e-mail]
[e-mail]
[e-mail]
[e-mail]
Telephone: [phone]
[phone]
[phone]

James M. O'Brien (Pro Hac Vice)
BAKER & McKENZIE LLP
300 East Randolph Street, Suite 5000
Chicago, IL 60601
Telephone: [phone]
Facsimile: +1.312.698.2323
james.m.o'[e-mail]
Attorneys for Respondent
WILLIAM L. VEGHTE

MELINDA L. HAAG
Northern District of California
United States Attorney

Daniel A Rosen (Pro Hac Vice)
BAKER & McKENZIE LLP
452 Fifth Avenue
New York, NY 10018
Telephone: [phone]
Facsimile:
212 310 1672
[e-mail]

Attorneys for Petitioner
THE UNITED STATES OF AMERICA

Attorneys for Proposed Intervenor
MICROSOFT CORPORATION

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN FRANCISCO DIVISION

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UNITED STATES OF AMERICA,

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Petitioner,

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v.

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WILLIAM L. VEGHTE,
Respondent.

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Case No. 14-CV-5565 (JST)
STIPULATION AND [PROPOSED]
ORDER TO TRANSFER ACTION TO
THE UNITED STATES DISTRICT
COURT FOR THE WESTERN
DISTRICT OF WASHINGTON

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Baker & McKenzie LLP
660 Hansen Way
Palo Alto, CA 94304
[phone]

Case No. 14-CV-05565(JST)
STIPULATION TO TRANSFER ACTION TO USDC - WESTERN DIST. OF WASHINGTON

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Petitioner United States, Respondent William Veghte ("Veghte"), and Proposed Intervenor

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Microsoft Corporation ("Microsoft") (collectively, the "Parties") by and through the undersigned

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counsel, hereby enter into this Stipulation and [Proposed] Order to Transfer Action to the United

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States District Court for the Western District of Washington pursuant to 28 U.S.C. § 1404(a) with

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reference to the following facts:

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Whereas on December 11, 2014, Petitioner initiated an action against Microsoft in the United

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States District Court for the Western District of Washington to enforce a "designated" summons

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served on Microsoft in connection with the Internal Revenue Service's ("IRS") examination of

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Microsoft's 2004 through 2006 taxable years;

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Whereas, the IRS has issued additional "related" summonses that "relate[] to the same return
as such designated summons";
Whereas, to date, the IRS has issued eighteen such "related" summonses to Microsoft, third-

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party recordkeepers, current employees, and former employees, including Respondent. All of the

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"related" summonses seek documents and testimony in connection with Microsoft's 2004 through

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2006 audit;

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Whereas, to date, Petitioner has filed twelve enforcement actions with respect to the "related"

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summonses, ten of which are pending in the United States District Court for the Western District of

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Washington;

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Whereas, all of the "related" enforcement actions pending in the United States District Court

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for the Western District of Washington, in addition to United States v. Microsoft Corp., 2:14-mc-

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00117-RSM, are pending before the Honorable Ricardo S. Martinez;

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Whereas, the enforcement actions pending in the United States District Court for the Western

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District of Washington and this action involve numerous common questions of law and fact,

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including but not limited to, Respondent's and Microsoft's defenses to enforcement;

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Whereas, on December 22, 2014, Petitioner initiated this action by filing a Petition to

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Enforce Internal Revenue Service Summons (DE 1) in the United States District Court for the

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Northern District of California to enforce the "related" summons against Respondent, Microsoft's

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Baker & McKenzie LLP
660 Hansen Way
Palo Alto, CA 94304
[phone]

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Case No. 14-CV-05565 (JST)
STIPULATION TO TRANSFER ACTION TO USDC - WESTERN DIST. OF WASHINGTON

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former employee who worked at Microsoft's headquarters in Redmond, Washington during the

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Microsoft audit years and now resides in the Northern District of California;

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Whereas, on December 30, 2014, counsel for Respondent conferred with counsel for

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Petitioner regarding Respondent's desire to move to transfer this action to the United States District

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Court for the Western District of Washington in light of the ten other actions to enforce "related"

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summons pending in that district, along with the underlying action to enforce the "designated"

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summons that is also pending in that district;

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Whereas, on December 30, 2014, Microsoft filed a Motion to Intervene in this action, on the

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grounds that 26 U.S.C. § 7609(b)(1) provides Microsoft with an unconditional right to intervene;

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Whereas, on January 7, 2015, Petitioner filed a statement of non-opposition to Microsoft's

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motion to intervene;

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Whereas, Microsoft has filed motions to intervene in the nine other pending actions in which

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it is not a named party, and the United States has filed statements of non-opposition in each of those

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cases;

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Whereas, Microsoft has also filed motions to consolidate the cases pending in the United

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States District Court for the Western District of Washington with the action to enforce the

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"designated" summons;

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Whereas, Microsoft and the United States have reached an agreement on consolidating the

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cases currently pending in the United States District Court for the Western District of Washington,

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as reflected in a stipulated motion filed on January 13, 2015;

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Whereas, on January 12, 2015, counsel for Petitioner informed counsel for Respondent that it

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would consent to transfer this action to the United States District Court for the Western District of

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Washington pursuant to 28 U.S.C. § 1404(a);

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Whereas, the Parties believe that transferring this action to the United States District Court

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for the Western District of Washington so that this case, along with the twelve other actions, may be

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heard by a single judge to ensure that the relevant issues are disposed of consistently in the multiple

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enforcement actions;

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Baker & McKenzie LLP
660 Hansen Way
Palo Alto, CA 94304
[phone]

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Case No. 14-CV-05565 (JST)
STIPULATION TO TRANSFER ACTION TO USDC - WESTERN DIST. OF WASHINGTON

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Whereas, the United States District Court for the Western District of Washington has subject
matter jurisdiction over this action pursuant to 26 U.S.C. § 7402(a) and 28 U.S.C. § 1345;
Whereas, the United States District Court for the Western District of Washington has

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personal jurisdiction over the Parties because Petitioner is the Government, Microsoft's principal

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place of business is in the state of Washington, and Respondent hereby consents to personal

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jurisdiction in the state of Washington solely for purposes of this action;

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Whereas, venue would be proper in the United States District Court for the Western District
of Washington because the Parties expressly consent to venue in that district;

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Whereas, if this Court issues the requested order transferring this action to the United States

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District Court for the Western District of Washington, Microsoft and the United States would move

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to consolidate this case with the other summons enforcement actions pending in that district before

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the Honorable Ricardo S. Martinez

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Whereas, Respondent and Microsoft enter into this stipulation and agreement on the

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condition that it will not have any prejudicial effect on any kind or type whatsoever on their rights,

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including but not limited to arguments, affirmative defenses, legal theories, or any other rights. To

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be clear, this Stipulation relates solely to transferring the venue of this action in order to streamline

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the proceedings, conserve judicial and party resources, and avoid inconsistent orders;

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Now, therefore, good cause appearing, the Parties hereby stipulate and respectfully request

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the Court enter an order transferring this action to the United States District Court for the Western

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District of Washington pursuant to 28 U.S.C. § 1404(a) for the convenience of the parties and in the

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interest of justice. All signatories listed, and on whose behalf the filing is submitted, including that

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below, concur in the filing's content and have authorized the filing.

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Baker & McKenzie LLP
660 Hansen Way
Palo Alto, CA 94304
[phone]

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Case No. 14-CV-05565 (JST)
STIPULATION TO TRANSFER ACTION TO USDC - WESTERN DIST. OF WASHINGTON

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Dated: January 15, 2015

Respectfully submitted,

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By:

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/s/
NOREENE STEHLIK
Trial Attorney
U.S. Department of Justice
Attorneys for Respondent

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THE UNITED STATES OF AMERICA
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Dated: January 15, 2015

Respectfully submitted,

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By:

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/s/
Scott H. Frewing
BAKER & McKENZIE LLP
Attorneys for Petitioner
WILLIAM L. VEGHTE

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Pursuant to General Order No. 45, Section X(B), Scott H. Frewing hereby attests that the
signatory’s concurrence in the filing of this document has been obtained.

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[PROPOSED] ORDER

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Based upon the foregoing Stipulation and good cause appearing, IT IS SO ORDERED:

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1.

This action is transferred to the United States District Court for the Western District

of Washington pursuant to 28 U.S.C. § 1404(a) for the convenience of the parties and in the interest

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of justice.

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Dated: January __, 2015

Hon. Jon S. Tigar
United States District Court Judge

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660 Hansen Way
Palo Alto, CA 94304
[phone]

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Case No. 14-CV-05565 (JST)
STIPULATION TO TRANSFER ACTION TO USDC - WESTERN DIST. OF WASHINGTON

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