The Ark, Inc. et al v. Internal Revenue Service

Filing 9

ORDER that United State's 5 Motion to Dismiss is GRANTED. Petitioner's 1 Petition for Order Quashing Summonses is DENIED. Clerk of Court shall close this case. Signed by Judge Miranda M. Du on 1/25/2013. (Copies have been distributed pursuant to the NEF - JK)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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***

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THE ARK, INC. and AEGIS COUNCIL,
LLC,

Case No. 3:12-cv-00269-MMD-WGC

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Petitioners,
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ORDER
(Res.’s Motion to Dismiss – dkt. no. 5)

v.
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INTERNAL REVENUE SERVICE,
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Respondent.
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Before the Court is Respondent United States’ (improperly named as the Internal

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Revenue Service) Motion to Dismiss. (Dkt. no. 5.) Petitioners do not oppose the Motion.

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On May 21, 2012, Petitioners The Ark, Inc. and Aegis Council, LLC instituted this

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action in the wake of Internal Revenue Service (“IRS”) summonses to Petitioners in

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connection with an investigation of them. (See dkt. no. 1.) Petitioners sought, through

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this action, a court determination into the nature and purpose of the IRS investigation, as

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well as a Court order quashing the summonses.

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In response, the United States filed the instant Motion to Dismiss seeking

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dismissal under Fed. R. Civ. P. 12(b)(1). (Dkt. no. 5.) The United States correctly

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argues that Petitioners have no standing to quash a summons issued to them

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personally, rather than a third party. “If the summons is issued to the taxpayer whose

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potential tax liability is being investigated, that taxpayer may challenge the summons

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before the IRS hearing officer and may, if the IRS seeks enforcement of the summons in

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the district court, challenge the summons in district court.” United States v. Ritchie, 15

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F.3d 592, 597 (6th Cir. 1994) (emphasis added). In light of this authority, Petitioners

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reluctantly consent to the granting of the motion. (Dkt. no. 7.)

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Good cause appearing, IT IS THEREFORE ORDERED that the United States’

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Motion to Dismiss (dkt. no. 5) is GRANTED. Petitioners’ Petition for Order Quashing

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Summonses (dkt. no. 1) is DENIED. The Clerk of Court shall close this case.

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DATED THIS 25th day of January 2013.

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MIRANDA M. DU
UNITED STATES DISTRICT JUDGE

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