United States of America v. Schwartz et al

Filing 16

ORDER ADOPTING 14 REPORT AND RECOMMENDATIONS of Magistrate Judge Joan M. Azrack. The Government's motion for default judgment is GRANTED and judgment shall be entered against Defendants in the amount of $562,894.70 for unpaid income taxes for the years 2001 through 2011, inclusive of interest and statutory accruals since May 31, 2013, plus interest and statutory accruals since May 31, 2013 until Defendants pay the judgment in full. The Clerk of Court is respectfully directed to enter judgment and close the case. So Ordered by Judge Nicholas G. Garaufis on 10/2/2013. (Lee, Tiffeny)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK

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UNITED STATES OF AMERICA,

ORDER

Plaintiff,

12-CV-05685 (NGG) (JMA)
-againstMARK R. SCHWARTZ and RACHEL
SCHWARTZ,
Defendants.

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NICHOLAS G. GARAUFIS, United States District Judge.
On November 16, 2012, Plaintiff United States of America ("the Government") filed this
action against Defendants Mark R. and Rachel Schwartz, in order to reduce to judgment
Defendants' outstanding tax liability for the years 2001 through 2011, in the amount of
$387,369.48 for unpaid income taxes, plus interest and statutory accruals. (Compl. (Dkt. 1).)
The Government served Defendants on December 18, 2012, and filed proof of service with the
court on January 3, 2013. (Dkts. 5-6.) The Government alleges in its complaint that a delegate
of the Secretary of Treasury has assessed Defendants for federal income taxes, estimated tax
penalties, and interest owed for the years 2001 through 2011 and that Mark R. and Rachel
Schwarti received notice of each assessment. (Compl.

ifif 3-4.)

Pursuant to the Government's

request, the Clerk of Court entered Defendant's default on May 24, 2013. (Dkts. 10-11.) On
June 18, 2013, the Government moved for a default judgment. (Dkt. 12.) The court referred this
motion to Magistrate Judge Joan M. Azrack for a report and recommendation ("R&R") pursuant
to 28 U.S.C. § 636(b)(l)(B) and Federal Rule of Civil Procedure 72(b)(l). (See June 27, 2013,
Order (Dkt. 13).)
On September 4, 2013, Judge Azrack issued an R&R, recommending that the court grant
the Government's motion for default judgment and direct the entry of judgment against

Defendants, jointly and severally, in the amount of $562,894.70 for unpaid income taxes for the
years 2001 through 2011, which includes interest and statutory accruals through May 31, 2013,
plus interest and statutory accruals since May 31, 2013, until defendants pay the judgment
amount. (R&R (Dkt. 22).) On September 9, 2013, the Government certified that the R&R had
been served on Defendants. (Dkt. 15.)
No party has objected to Judge Azrack's R&R, and the time to do so has passed. See
Fed. R. Civ. P. 72(b)(2); (see also R&R at 6.) Therefore, the court reviews the R&R for clear
error. See Gesualdi v. Mack Excavation & Trailer Serv .. Inc., No. 09-CV-2502 (KAM) (JO),
2010 WL 985294, at *l (E.D.N.Y. Mar. 15, 2010); La Torres v. Walker, 216 F. Supp. 2d 157,
159 (S.D.N.Y. 2000); cf. 28 U.S.C. § 636(b)(l). Finding no clear error, the court ADOPTS the
R&R in its entirety, see Porter v. Potter, 219 F. App'x 112 (2d Cir. 2007), and as set forth above
and in the R&R: the Government's motion for default judgment is GRANTED and judgment
shall be entered against Defendants in the amount of $562,894.70 for unpaid income taxes for
the years 2001 through 2011, inclusive of interest and statutory accruals since May 31, 2013,
plus interest and statutory accruals since May 31, 2013 until Defendants pay the judgment in full.
The Clerk of Court is respectfully directed to enter judgment and close the case.
SO ORDERED.

I

A

s/Nicholas G. Garaufis
Dated: Brooklyn, New York
October c9-I, 2013

JqJCHOLAS G. GARAuijs
United States District Judge