National Default Servicing Corp. v. Internal Revenue Service et al

Filing 44

ORDER granting ECF No. 42 Motion for Distribution of Interpleader Funds. IT IS ORDERED THAT the Clerk of Court shall pay all the funds currently in the registry in connection with this case to the United States for application toward the unpaid federal tax liabilities of Diedra S. Holland; as specified herein. Signed by Judge Richard F. Boulware, II on 11/17/2016. (Email (NEF) to Finance 11/18/2016.)(Copies have been distributed pursuant to the NEF - DRM)

1
2
3
4
5
6
7

CAROLINE D. CIRAOLO
Acting Assistant Attorney General
BORIS KUKSO
Trial Attorney, Tax Division
U.S. Department of Justice
P.O. Box 683
Washington, D.C. 20044
202-353-1857 (v)
202-307-0054 (f)
[e-mail]

8
9
10
11
12
13
14
15
16
17
18
19

Of Counsel:
DANIEL G. BOGDEN
U.S. Attorney
IN THE UNITED STATES DISTRICT COURT FOR THE
DISTRICT OF NEVADA
NATIONAL DEFAULT SERVICING
CORP.,
Plaintiff,

)
)
)
)
v.
)
)
UNITED STATES OF AMERICA,
)
)
Defendant.
)
____________________________________)

Case No. 2:13-cv-01311-RFB-GWF
MOTION FOR DISTRIBUTION OF
INTERPLEADER FUNDS

20

The United States of America, on behalf of the Internal Revenue Service, hereby

21

moves for an order directing the Clerk of this Court to disburse to the United States all

22

the funds held in the registry of the court in this interpleader proceeding.

23
1

1

This interpleader case concerning proceeds from a foreclosure sale was removed

2

from state court on July 24, 2013. ECF No. 1. On March 28, 2014, Plaintiff deposited

3

$10,452.80 into the registry of the court. ECF No. 22. Plaintiff and the United States were

4

in dispute about $3,704.67 in attorney’s fees Plaintiff withheld from the proceeds.
On March 31, 2016, the Court granted the United States’ motion for summary

5
6

judgment and denied Plaintiff’s motion. ECF No. 40. The Court determined that the

7

United States is entitled to all the proceeds from the foreclosure sale because the federal

8

tax liens against Diedra S. Holland attached to all the proceeds. Id. Consequently, the

9
10

Court ordered Plaintiff to deposit the remaining $3,704.67 in proceeds into the Court’s
registry for distribution to the United States. Id.
On March 20, 2016, Plaintiff deposited $3,704.67 into the registry. ECF No. 41.

11

The United States now seeks an order directing distribution to the United States of

12
13

all the interpleader funds currently in the Court’s registry. The United States also requests
that the distribution be made without reduction of any registry fees.1 All the funds are to

14

be applied to the outstanding tax liabilities of Diedra S. Holland.

15

Date: April 28, 2016

16

CAROLINE D. CIRAOLO
Acting Assistant Attorney General

17
18

/s/ Boris Kukso

19
20
1

21
22
23

“In cases where the United States Government is a party to the action underlying the registry
investment, the funds initially withheld in payment of the [registry] fee may be restored to the United
States upon application filed with the court by… government counsel.” 56 Fed. Reg. 56356-01; see also
Housekey Financial Corp. v. Hofer, 2001 WL 429821 at *1 (E.D. Cal. 2001) (ordering the Clerk to disburse
all registry funds to the United States “undiminished by any registry fees assessed.”).

2

1

BORIS KUKSO
Trial Attorney, Tax Division
U.S. Department of Justice

2
3

Attorneys for the United States

4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
3

1
2

CERTIFICATE OF SERVICE

3
4
5
6
7

IT IS HEREBY CERTIFIED that service of the foregoing MOTION FOR
DISTRIBUTION OF INTERPLEADER FUNDS has been made on April 28, 2016, by
ECF filing addressed to:
Gregory L Wilde
[e-mail], [e-mail]

8
9

Kevin S. Soderstrom
[e-mail]

10
11
12
13
14

/s/ Boris Kukso
BORIS KUKSO
Trial Attorney, Tax Division
U.S. Department of Justice

15
16
17
18
19
20
21
22
23
4

1
2
3
4
5
6
7
8

IN THE UNITED STATES DISTRICT COURT FOR THE
DISTRICT OF NEVADA

9
10
11
12
13
14
15
16

NATIONAL DEFAULT SERVICING
CORP.,
Plaintiff,

)
)
)
)
v.
)
)
UNITED STATES OF AMERICA,
)
)
Defendant.
)
____________________________________)

Case No. 2:13-cv-01311-RFB-GWF
ORDER GRANTING MOTION FOR
DISTRIBUTION OF
INTERPLEADER FUNDS

17
18

The United States’ Motion requesting disbursement to the United States all the
funds held in the registry of the court in this interpleader proceeding IS HEREBY

19

GRANTED.
20

IT IS ORDERED THAT the Clerk of Court shall pay all the funds currently in the
21
22

registry in connection with this case to the United States for application toward the
unpaid federal tax liabilities of Diedra S. Holland. The payment shall be made without

23
1

1

reduction of any registry fees. The check shall bear the notation “CMN 2013102143,” be

2

made payable to the United States Department of Justice, and sent to:

3
4
5

William Thompson
Office of Review
Dept. of Justice, Tax Division
P.O. Box 310
Washington, DC 20044

6
7

IT IS SO ORDERED.

8
9
10

11/17/16
Dated: ________________

________________________________
RICHARD F. BOULWARE, II
United States District Judge

11
12
13
14
15
16
17
18
19
20
21
22
23
2