Microsoft Corporation v. Internal Revenue Service

Filing 41

ORDER granting Parties' 40 Third Consent Motion Regarding Case Schedule. The IRS to provide draft revised Vaughn indices by 10/15/2021. The IRS to file its motion for summary judgment by 12/3/2021. Signed by Judge Ricardo S. Martinez. (SB)

Case 2:15-cv-01605-RSM Document 41 Filed 09/17/21 Page 1 of 5

HONORABLE RICARDO S. MARTINEZ

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IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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MICROSOFT CORPORATION,
NO. 2:15-cv-01605 RSM

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Plaintiff,
vs.
INTERNAL REVENUE SERVICE,

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Defendant.

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THIRD CONSENT MOTION AND ORDER
REGARDING CASE SCHEDULE

The above-captioned action is for declaratory and injunctive relief under the Freedom of
Information Act (“FOIA”), 5 U.S.C. § 552, as amended, and the Administrative Procedure Act, 5
U.S.C. § 701 et seq. The parties jointly request that the action remain open and that the Court
approve the parties’ agreed upon, modified schedule set forth in paragraph 1, below. In support
of this request, the parties state the following:
1.

On August 13, 2021, the Court issued a modified case management order in

which the Court adopted the parties’ proposed revised schedule and case management order.
Under that schedule, the IRS was required to provide Microsoft with a draft revised Vaughn
index by September 17, 2021, and to file a motion for summary judgment by October 29, 2021.
THIRD CONSENT MOTION TO EXTEND TIME AND ORDER
REGARDING CASE SCHEDULE
(Case Nos. 2:15-cv-1605)

U.S. Department of Justice, Tax Division
Ben Franklin Station , P.O. Box 227
Washington, D.C. 20044
202-616-8994 (Phone)
202-524-6866 (Fax)

Case 2:15-cv-01605-RSM Document 41 Filed 09/17/21 Page 2 of 5

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The IRS, however, underestimated the amount of time and resources needed to complete a draft

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revised Vaughn index in this matter. The parties also plan to thereafter engage in good faith

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negotiations to attempt to narrow the issues that might need to be resolved through summary

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judgment proceedings.1 The IRS accordingly requests, and Microsoft consents, to extend the

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remaining deadlines for transmitting a draft revised Vaughn index to Microsoft and for filing a

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motion for summary judgment. The IRS therefore requests that the Court adopt the following

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revised schedule for the above-captioned case:

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SCHEDULE

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The IRS to provide draft revised Vaughn
indices:

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2.

December 3, 2021

Recognizing that the parties continue to engage in good faith negotiations, the

parties agree that evidence of the IRS’s efforts to address Microsoft’s concerns, including any
revisions to previously exchanged declarations or exemption claims, is not admissible to prove
that the IRS’s search was unreasonable or that the IRS’s exemption claims were improper.

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October 15, 2021

The IRS to file its motion for summary
judgment:

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Date

Event

3.

The parties jointly request that this action remain open and that the Court enter an

order adopting the case schedule proposed in paragraph 1.

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Respectfully submitted this 17th day of September, 2021.

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//

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//

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//

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The IRS provided Microsoft with a draft revised Vaughn index in 2:15-cv-00369 and 2:15-cv-00850 on
August 27, 2021, and the parties are in the process of identifying and attempting to address issues in the
index.
THIRD CONSENT MOTION TO EXTEND TIME AND ORDER
REGARDING CASE SCHEDULE
(Case Nos. 2:15-cv-1605)

U.S. Department of Justice, Tax Division
Ben Franklin Station , P.O. Box 227
Washington, D.C. 20044
202-616-8994 (Phone)
202-524-6866 (Fax)

Case 2:15-cv-01605-RSM Document 41 Filed 09/17/21 Page 3 of 5

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BAKER & McKENZIE LLP
By: s/ Daniel A. Rosen
Daniel A. Rosen, NYBA #2790442
Pro Hac Vice
452 Fifth Avenue
New York, NY 10018
Tel: [phone]
Fax: [phone]
Email: [e-mail]
Attorney for Plaintiff Microsoft Corporation

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U.S. DEPARTMENT OF JUSTICE
By:

s/ Stephen S. Ho
Stephen S. Ho
Trial Attorney, Tax Division
U.S. Department of Justice
Post Office Box 227
Washington, DC 20044
Tel: [phone]
Fax: [phone]
Email: [e-mail]

Attorney for Defendant Internal Revenue Service

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THIRD CONSENT MOTION TO EXTEND TIME AND ORDER
REGARDING CASE SCHEDULE
(Case Nos. 2:15-cv-1605)

U.S. Department of Justice, Tax Division
Ben Franklin Station , P.O. Box 227
Washington, D.C. 20044
202-616-8994 (Phone)
202-524-6866 (Fax)

Case 2:15-cv-01605-RSM Document 41 Filed 09/17/21 Page 4 of 5

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CERTIFICATE OF SERVICE
I certify that I served a true and correct copy of the foregoing JOINT MOTION via the
Court’s electronic case filing system on September 17, 2021.

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/s Stephen S. Ho
STEPHEN S. HO

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THIRD CONSENT MOTION TO EXTEND TIME AND ORDER
REGARDING CASE SCHEDULE
(Case Nos. 2:15-cv-1605)

U.S. Department of Justice, Tax Division
Ben Franklin Station , P.O. Box 227
Washington, D.C. 20044
202-616-8994 (Phone)
202-524-6866 (Fax)

Case 2:15-cv-01605-RSM Document 41 Filed 09/17/21 Page 5 of 5

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ORDER

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It is SO ORDERED this 17th day of September, 2021.

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A

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RICARDO S. MARTINEZ
CHIEF UNITED STATES DISTRICT JUDGE

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Presented by:

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BAKER & McKENZIE LLP
By: s/ Daniel A. Rosen
Daniel A. Rosen, NYBA #2790442
Pro Hac Vice
452 Fifth Avenue
New York, NY 10018
Tel: [phone]
Fax: [phone]
Email: [e-mail]
Attorney for Plaintiff Microsoft Corporation

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U.S. DEPARTMENT OF JUSTICE

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By:

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s/ Stephen S. Ho
Stephen S. Ho
Trial Attorney, Tax Division
U.S. Department of Justice
Post Office Box 227
Washington, DC 20044
Tel: [phone]
Fax: [phone]
Email: [e-mail]
Attorney for Defendant Internal Revenue Service

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THIRD CONSENT MOTION TO EXTEND TIME AND ORDER
REGARDING CASE SCHEDULE
(Case Nos. 2:15-cv-1605)

U.S. Department of Justice, Tax Division
Ben Franklin Station , P.O. Box 227
Washington, D.C. 20044
202-616-8994 (Phone)
202-524-6866 (Fax)