IN THE MATTER OF THE TAX LIABILITIES OF DOES
IN THE MATTER OF THE TAX LIABILITIES OF: JOHN DOES, United States taxpayers, who during any part of the period January 1, 2005, through December 31, property in the State of California for little or no consideration subject to California Propositions 58 or 193, which information is in the possession of the State of California Board of Equalization, sent to BOE by the 58 California counties pursuant to propositions 58 and 193.)
No. 2:10-mc-00130-MCE-EFB.
United States District Court, E.D. California.
December 15, 2011.
MEMORANDUM AND ORDERMORRISON C. ENGLAND, Jr., District Judge.
Presently before the Court is the United States' Ex Parte Petition for Leave to Serve "John Doe" Summons ("Petition"). By way of its Petition, the United States seeks leave to serve, pursuant to 26 U.S.C. § 7609(f), an Internal Revenue Service ("IRS") "John Doe" Summons (hereafter "Summons") on California's Board of Equalization ("BOE"). For the following reasons, the United States' Petition is GRANTED.
In its previous Order, ECF No. 3, the Court denied the United States' Petition on the grounds that it did not meet one of the three elements necessary to grant a Summons. Because failing to meet one of the three elements is dispositive, the Court did not address the other two elements. In its Order, the Court also advised the United States that if it chose to resubmit the Petition, it would have to address four additional inquiries regarding the constitutionality of issuing a Summons to a state.
The United States has now resubmitted the Petition. The revised Petition expands on the discussion of the three required elements and also addresses each of the four inquires raised by the Court.
This Order first addresses each of the three elements necessary for the issuance of a Summons and then turns to a consideration of each of the United States' responses to the Court's four additional inquiries.
1. For the purposes of this Order, the Court presumes Petitioner's familiarity with the facts and background of this matter as set forth in its previous order.
2. IRS Form 709, the "Gift (and Generation-Skipping Transfer) Tax Return, is used to report transfers subject to certain gift and generation-skipping tax requirements.
3. However, states are granted authority to assert requests of privilege under Federal Rule of Evidence 501 when asked to produce certain state records. In re Hampers, 651 F.2d 19, 21-23 (1st Cir. 1981)(holding qualified privilege for state revenue commissioner). In the instant case, no claim of privilege has been raised by the state.