United States of America v. Allen et al

Filing 9

PERMANENT INJUNCTION BY STIPULATION AND CONSENT as to Rachel D. Watson. Signed by Honorable R Bryan Harwell on 2/8/2013.(hcic, )

IN THE UNITED STATES DISTRICT COURT,FOR THE
- DISTRICT OF SOUTH CAROLINA
FLORENCE DIVISION
UNITED STATES OF AMERICA,
Plaintiff,

v.
SUSANN ALLEN, and
-- --RAGHEL-f};-WAT-SGN,-,--------------Defendants.

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Civil No. 4:13-cv-197-RBH
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PERMANENT INJUNCTION BY STIPULATION AND CONSENT _

Plaintiff, the United States of America, and Defendant, Rachel D. Watson, stipulate and
agree as follows:
1.

Plaintiff, the United States of America, has filed- a complaint seeking a permanent

injunction against defendant Rachel D. Watson and others under 26U.S.C. §§ 7402(a), 7407, and
7408.
2.

Watson admits for purposes ofthisinjunction that the Court has personal jurisdiction

over her and subject matter jurisdiction over this matter but without admitting any of the other
allegations in the complaint.
3.

Watson waives the entry of findings of fact and conclusions oflaw and voluntarily

consents to the entry of this permanent injunction under 26 U.S.C. §§ 7402(a), 7407, and 7408
without further notice and agrees to be bound by its terms. ­
4.

Watson further understands and agrees that:
a.

This Permanent Injunction by Stipulation and Consent will be entered under
Fed. R. Civ. P. 54(b) and 65, and there being no just reason for delay, will
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result in the entry. without further notice, of a Final Judgment against her in
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b.

this matter;
Watson waives any right she may have to appeal from this Permanent
Injunction by Stipulation and Consent;

c.

The Court will retain jurisdiction over this matter for the purpose of
implementing and enforcing the Permanent Injunction by Stipulation and
Consent;

d.

If Watson violates this injunction, she may be-subject to civil and criminal.
sanctions for contempt of court;

e.

The United States may conduct full post juagment discovery to monitor
compliance with this injunction; and

f.

Entry of this Permanent Injunction by Stipulation and.Consent resolves only
this civil injunction action, and neither precludes the United States, or any of

its agencies, from pursuing any other current or future civil or criminal
mattersor proceedings, nor precludes Watson from contesting her liability
in any other matter or proceeding.
I.

Accordingly, it is hereby STIPULATED, ORDERED, and ADJUDGED pursuant to 26
U.s.C. §§ 7402(a), 7407, and 7408 and, pursuant to Fed. R. Civ. P. S4(b), there being no just
reason for delay, that defendant Watson and any other person or entity acting in active
concert andlor participation with her are PERMANENTLY ENJOINED·from directly or
indirectly, by use of any means or instrumentalities:

4858345.2

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A.

preparing or assisting in the preparation or filing of federal income tax returns ,
"

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amended returns, and other related documents and forms for others;
B.

preparing or assisting in the preparation or filing offederal tax returns that they know
will result in the understatement of any tax liability or the overstatement of federal
tax refunds;

C.

engaging in any activity subject to,penalty under 26 U.S;C: §§ 6694, 6695, and
6701; and

D.

engaging in any other conduct which substantially interferes with the proper
administration and enforcement of internal revenue laws.

II.

It is FURTHER STIPULATED, ORDERED; and ADJUDGED that Watson, within thirty

(30) days of entry ofthis Permanent Injunction by Stipulation and Consent, send at her own
expense by certified mail, return receipt requested, an executed copy of this Permanent
Injunction by Stipulation and Consent to each employer for whom she ,prepared federal
income tax returns or any other federal tax forms for others after January 1,2008;
III.

It is FURTHER STIPULATED, ORDERED, and ADJUDGED that Watson, within thirty

(30) days of entry of this Permanent Injunction by Stipulation and Consent turn over to the
United States copies of all returns or cl~ims for refund that she prepared for customers after
January 1,2008 that are in her possession, custody, or control;
IV.

It is FURTHER STIPULATED, ORDERED, and ADJUDGED that Watson, within thirty
(30) days of entry ofthis Permanent Injunction by Stipulation and Consent, tum over to the
United States a list with the name, address and telephone number, e-mail address (ifknown),
and social security number or other taxpayer identification number of all customers for

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whom she prepared returns after January 1,2008, to theexten't she is in possession, custody,
or control of such information;
V.

It is FURTHER STIPULATED, ORDERED, and ADJUDGED that Watson, within fortyfive (45) days ofentry ofthis Permanent Injunction by Stipulation and Consent, file with the
Court a sworn certificate stating that she has complied with paragraphs II, III, and IV ofthis
Permanent Injunction by Stipulation and Consent;

VI.

It is FURTHER STIPULATED, ORDERED, and ADJUDGED that Watson maintain records
ofher compliance with paragraphs II, III, and IV ofthis Permanent Injunction by Stipulation
and Consent, which may be produced to the Court, if requested, or to the United States
pursuant to paragraph VII, below; and

VII.

It is FURTHER STIPULATED, ORDERED, and ADJUDGED that the Court shall retain
jurisdiction to enforce this injunction and that the U!1ited States. is permitted to monitor
Watson's compliance with this injunction and to engage in post-judgment discovery in
accordance with the .Federal Rules of Civil Procedure.

IT IS SO ORDERED

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2013
February
Florence, South Carolina

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. United States v. Susann Allen and Rachel D. Watson, No. 4: 13-cv-OOI 97-RBH
This Permanent Injunction by Stipulation and Consent is consented to and submitted by:

For Plaintiff
KATHRYN KENEALLY
Assistant Attorney General
By:

MICHAEL W. MAY
Trial Attorney, Tax Division
U.S. Department of Justice
Post Office Box 14198
Ben Franklin Station
Washington, D.C. 20044
Telephone: [phone]
Facsimile: [phone]
Michael. W [e-mail]

.;~
. WATSON, pro se
ardRoad
.Effingham, South Carolina 29541.
Dated:

8-' d- ~l3

-andWILLIAM N. NETTLES .

By:

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