-DAD Dougan v. United States of America, No. 2:2011mc00065 - Document 10 (E.D. Cal. 2011)

Court Description: STIPULATION and ORDER signed by Judge John A. Mendez on 10/4/2011 ADOPTING 12 Findings and Recommendations from case no. 2:09-mc-00052 FCD DAD; DENYING in its entirety 1 Petition to Quash IRS Summons. (Michel, G)

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-DAD Dougan v. United States of America 1 2 3 4 5 Doc. 10 ROBERTA LINDSEY SCOTT (SBN 117023) BANKS & WATSON Hall of Justice Building 813 Sixth Street, Suite 400 Sacramento, CA 95814-2403 Telephone: (916) 325-1000 Facsimile: (916) 325-1004 Attorney for Petitioner STEPHEN J. DOUGAN 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 STEPHEN J. DOUGAN, Petitioner, 12 13 v. 14 UNITED STATES OF AMERICA, 15 Case No.: 2:11-mc-00065-JAM-DAD STIPULATION AND ORDER FOR THIS COURT TO ADOPT THE FINDINGS AND RECOMMENDATIONS FROM CASE NO. 2:09-MC-00052-FCD-DAD AND APPLY THEM IN THIS CASE Respondent. 16 17 18 Petitioner Stephen J. Dougan (“Dougan”) and Respondent the United States of America (“Respondent”), through counsel, hereby stipulate and agree as follows: 19 20 21 22 23 24 RECITALS WHEREAS, in 2009 Dougan was notified by the Internal Revenue Service (“IRS”) that it was auditing his federal tax returns for calendar years 2006 and 2007; WHEREAS, on or about May 13, 2009, the IRS issued a Summons to third party First Northern Bank seeking Dougan’s bank records which records identified his clients; WHEREAS, Dougan hereby represents that, upon notification of the IRS’ Summons, Dougan 25 consulted with Ethics counsel to ascertain his duties and obligations to protect his clients’ identities and 26 personal information as required by California Rules of Professional Conduct, Rule 3-100 and Business 27 & Professions Code section 6068(e); 28 {00059520.DOC; 1 } STIPULATION AND ORDER 7486103.1 PDF created with pdfFactory trial version www.pdffactory.com Dockets.Justia.com 1 WHEREAS, Dougan filed on or about June 2, 2009 a Petition to Quash the IRS Summons in this 2 Court pursuant to 26 U.S.C. section 7609(b)(2), case number No: 2:09-mc-00052-FCD-DAD (“Dougan 3 I”). The Petition sought to quash the Summons on the grounds of attorney-client privilege, privacy 4 rights and interests, Dougan’s professional obligations to his clients and on the grounds that the names 5 and identities of Dougan’s clients as identified in the documents subject to the Summons failed to meet 6 the standards of relevancy under 26 U.S.C. section 7602; 7 WHEREAS, Dougan hereby represents that he filed the Petition in Dougan I based on his good 8 faith belief and understanding of his professional duties to his clients under applicable law and on advice 9 of Ethics counsel; 10 11 12 13 14 15 16 WHEREAS, Respondent filed an Opposition to the Petition in Dougan I on July 2, 2009 and Dougan filed a Reply thereafter; WHEREAS, in 2011 Dougan was notified by the IRS that it was auditing his federal tax returns for calendar years 2008 and 2009; WHEREAS, on or about June 30, 2011, the IRS issued a Summons to third party First Northern Bank, seeking Dougan’s bank records which records identified his clients; WHEREAS, on or about July 20, 2011, Dougan filed the Petition to Quash the IRS Summons 17 initiating this case, also pursuant to 26 U.S.C. section 7609(b)(2), (“Dougan II”). The Petition sought to 18 quash the Summons on the grounds of attorney-client privilege, privacy rights and interests, Dougan’s 19 professional obligations to his clients and on the grounds that the names and identities of Dougan’s 20 clients as identified in the documents subject to the Summons failed to meet the standards of relevancy 21 under 26 U.S.C. section 7602; 22 23 24 WHEREAS, this Court issued Orders of Related Cases in both Dougan I and Dougan II on July 27, 2011; WHEREAS, United States Magistrate Judge Drozd issued Findings and Recommendations in 25 Dougan I on August 15, 2011, recommending that Dougan’s Petition to Quash IRS Summons in 26 Dougan I be denied in its entirety and the action closed. A true and correct copy of the Findings and 27 Recommendations is attached hereto as Exhibit A; 28 {00059520.DOC; 1 } 2 STIPULATION AND ORDER PDF created with pdfFactory trial version www.pdffactory.com 1 WHEREAS, no objections to the Findings and Recommendations having been filed in Dougan I, 2 this Court adopted them in full by Order dated September 21, 2011, denying Dougan’s June 2, 2009 3 Petition to Quash IRS Summons and ordering the Clerk to close the case. A true and correct copy of 4 said Order is attached hereto as Exhibit B; and 5 WHEREAS, Judgment was entered in Dougan I on September 21, 2011 in accordance with the 6 Court’s Order filed September 21, 2011. A true and correct copy of the Judgment is attached hereto as 7 Exhibit C: 8 WHEREFORE, the parties agree as follows: STIPULATION 9 10 11 This case, and the Petition seeking to quash the IRS’s 2011 Summons issued to First Northern Bank, involve virtually identical contentions, issues and law as Dougan I. 12 Dougan was fully represented and had a full and fair opportunity to litigate in Dougan I. 13 The Findings and Recommendations issued and adopted in Dougan I shall apply with equal force 14 and effect to this case. 15 /// 16 /// 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 {00059520.DOC; 1 } 3 STIPULATION AND ORDER PDF created with pdfFactory trial version www.pdffactory.com 1 Wherefore, the parties respectfully request that the Court adopt and apply the Findings and 2 Recommendations entered in Dougan I in full with respect to Dougan’s July 20, 2011 Petition to Quash 3 IRS Summons in this case (Doc. No. 1) and issue an Order and Judgment as appropriate in conformity 4 therewith. 5 Respectfully submitted this 3rd day of October, 2011. 6 7 BANKS & WATSON BENJAMIN B. WAGNER United States Attorney 13 /s/ Roberta Lindsey Scott ROBERTA LINDSEY SCOTT Banks & Watson Hall of Justice Building 813 Sixth Street, Suite 400 Sacramento, CA 95814-2403 Telephone: (916) 325-1000 Facsimile: (916) 325-1004 jjb@banksfirm.com rls@bw-firm.com /s/ Michael G. Pitman MICHAEL G. PITMAN Trial Attorney, Tax Division U.S. Department of Justice P.O. Box 683 Ben Franklin Station Washington, D.C. 20044-0683 Telephone: (202) 305-7938 Facsimile: (202) 307)0054 Michael.G.Pitman@usdoj.gov 14 Counsel for Stephen J. Dougan Counsel for the United States of America 8 9 10 11 12 15 16 17 18 IT IS SO ORDERED this 4th day of October, 2011. 19 20 /s/ John A. Mendez________________________ UNITED STATES DISTRICT COURT JUDGE 21 22 23 24 25 26 27 28 {00059520.DOC; 1 } 4 STIPULATION AND ORDER PDF created with pdfFactory trial version www.pdffactory.com

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