United States of America v. Newbill, No. 7:2015cv00009 - Document 8 (W.D. Va. 2015)
Court Description: MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 07/14/2015. (bw)
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United States of America v. Newbill Doc. 8 n Fpm OFFI U.S.DI GOURT CE ST. AT Y I THE UN I N TED STA TES D I STRI CO UR T CT FO R TH E W ESTERN DI STR I OF V I N I CT RGI A RO AN O KE D I ISI V ON OKE,V A FI*D L J li 2 1 UL 25 Jl I XA : D p UN I TED STATES OF A M ERI , CA L QRK La C i lA cton N o.7: vi i 15CV 00009 Pl i if a nt f , M EM O M N DU M O PI I N N O R OBERT A . EW BI N LL, H on.Gl n E. e Conz ad Chi Unied St t D i ti tJ ef t a es s r c udge Def nda . e nt Thi c s i p e e tybeo et ec u t nt UntdS ae ' to f rd fulj g n . Fo s a e s rs n l fr h o r o he ie tts mo in o ea t ud me t r t r as s tf t beow ,hemoton wilbegr nt d. he e ons e orh l t i l a e Backaround On J nua y 9, a r 2015, heUnie St t sfl t sa ton agans t de enda , t t d a e ied hi c i i t he f nt Robe tA. r Ne ilp rua t o2 U. C. 7 01 s e n t r d et j d me tteu p i a s sme to tu t wbl, u s n t 6 S. j 4 , e kig o e uc o u g n h n ad se s n f r s f r oveype li andi ers ma a ns Ne l unde 26U. C.j6672. A prvae und ec r nates nt et de gai t wbil r S. it pr e ss r erpe s ly s r e Ne l wih t c oc s e v r ona l e v d wbil t he ompli ta s a n nd umm onsonAprl1 201 i 0, 5. Ne l f ld t a we orot r s de e t a to wihi t tmepe i pe ted b wbil aie o ns r he wie f nd he c i n t n he i rod nnit y t Fe r Rul ofCi lPr edur On J he de al es vi oc e. une l 201 t Cl r fl d a e r ofde a taga ns 0, 5, he e k ie n nt y f ul i t N e bil N e bilhasno m ove t s tas det e r ofdef ul,o o he w i e a a e i a w l. w l t d o e i he nty a t r t r s ppe r d n ny mn n ri t i c s . TheUntdS ae h sn w mo e frd fulj d me t n e n hs ae ie tts a o v d o ea t u g n . St andar ofR e e d vi w Rul 55 oft Fe a Rul s ofCi lPr e e s t ou a t se pr e e f r o a ni a e he der l e vi oc dur e s t wo- t p oc dur o bt i ng d fulj dg n . W he ad fnd n fist pla o ohe wied fnda a to ,h Clr o Co r ea t u me t n ee a t al o e d r t r s ee n cin t e ek f u t i a horz t ma a e r ofde a t Se Fe R.Ci P.55( . Afe deful i e eedbyt s ut ied o ke n nty f ul. e d. v. a) tr a t s ntr he Cl k,apa t ma mo f de a t udgme unde Rul 55( . er ry y ve or f ulj nt r e b) Dockets.Justia.com Upon de a t al oft welplade f t al ge i t c f ul, 1 he l- e d acs le d n he ompl i m a bet ke ast ef ant y a n nl or pur esofla lt Se Rya v.Home omi Fi Newoy 253F. 778,780(t Ci. ) pos ibiiy. e n c ngs n. t k, 3d 4h r 2001 (llh d fnd n , yh sd fut a mi panifswelpe d d alg to so f Gg ' (nena û-l e ee a tb i e a l, d t litf gs l- la e l ai n f a .' itr l e )) ctto o te ) s eas Fe R. v. 8 b ( ) Ac o dn l ,nt ed fut u g n c n e tte iain mitd ; e lo d. Ci P. ( )6 . c r ig y i h e a lj d me t o tx ,h l p r p it iq iyi wh t ro no t efc o t epe dng s p rst d fu tu g n a dt s p o rae n ur s ehe r t h a e f h la i s u po t he ea lj d me t n he a c us ofa i t r i ' A nde s v.Fo a es cton he e n. ' r on und.f A dva e ent Ed .& Em p' ofA m . ndi ns or nc m . uc t I a , No.99- 508,1 U. App.LEXI 1 1 999 S. S 8633,a *2( hCi. t 4t r Aug.1 1 . 0, 999) l t f t aleg i t c pl i a e s f c e t es a i h la lt t cour m us t n f he ac s l ed n he om a nt r uf i i nt o t bls i biiy, he t t he de e m i t a o i t a ountofda a . Rva 253 F. a 780- . I s doi t c t t r ne he ppr pr a e m m ges n, 3d t 81 n o ng, he our ma c y onductane de ir he rngu rRul 55( ( . Thec t yalomak adeemi to vi ntay ai nde e b)2) our ma s e tr nain ofda age wihouta he r ng a l ast r i a a qua e e de i r bas si t r c d f t m s t a i s ong he e s n de t vi nta y i n he e or or he a r . S eAn e s n 1 5F.da 5 7( oigt tt s mecrl tn e ad src c u t n ei a wad e d ro , 5 3 t 0 n t ha kn o icz a c s itit o r e trng n i ms dea tj me ma a r da sa c rana efom t pla ngswihou hol ngahe rng' . ful udg nt y wad mage s e ti bl r he e di t t di ai ' ) Di scussi on The l e nalRe nue Code r uiese pl r t w ihhol i om e t xesa Fede a nt r ve eq r m oye s o t d nc a nd rl I s r n eCo ti ui nAc (1 CA' tx sfo t i e o e s wa e whe t o ewa e aep i n u a c nrb to t ç F1 ' a e r m her mply e ' g s n h s g s r ad. ) S e2 U. C. j31 2()& 3 0 () Be a s tee ly r lst e etx sa i p ca f n s i e 6 S. j 0 a 4 2 a . c u e h mp o e hod h s a e s i e il u dg) n s tus f t Unie Stt , 26U. C.j7501a ,hewihhel a nt aecommonl rfredt a r t or he td aes' ' S. () t t d mou s r y eer o s dr tf ndtxes' Sl v. t Stts 436U. 238,243( 978)(nt na quotto maks d us u a . odov Unied ae , t ' S. 1 i er l ain r omitd) Thes f f s f t e usveus oft gove me ,nott e oye s' ndmay te . e unds d t or he xcl i e he exi nz nt he mpl r'a notbe us t pay t em pl ed o he oyer' bus nessexpens s i es. Er n v. t d St t , F.d 31 31 ( t wi Unie aes 591 3 3, 9 4h Ci. 0) r 201 . 'l Code isur s c incebyt e oye wihisoblg to ...opa tus f i-he a s eg) ompla he mpl r t t iain t y'r t und t xesby i pos ng pe s lla lt on of i r o a nt oft e pl rr po i e f the a m i r ona i biiy fce s r ge s he m oye es nsbl or t 2 e o rsde ii r r ngwihhol ngandpa n 'oft txes' l ( i Sl mplye ' csons egadi t di yme t he a . d.quotng odov,436 ' U. a 247. Tot te j6672ofTil 26prvi ,i pe tnentpa ta f lws S. t ha nd, te o des n ri r, s olo : A ny pe s r uie t c l c ,t u hf l a ountf ,a pa ove a t x i pos d r on eq r d o ole t r t uly cc or nd y r ny a m e by t stte w ho w iluly f ist c l c s h t x, t ut uly a co f a pa hi il lf l a l o ole t uc a or r hf l c unt or nd y o s t orw il uly a t m pt i a m a rt e de orde ea a s h t x or ver uch ax, lf l te s n ny nne o va f t ny uc a t pa e t r , ha l i a ton t o he pe li spr ded by l w , la e t a he ym nt he eof s l , n ddii o t r na t e ovi a be i bl o pe ly e nat qual o t t a amountoft t x e t he ot l he a vade ornotcolece ornota co e d, l t d, c unt d f rand pa d ove . o i r 26U. C. 6672( . Appl ngt ssaut,heUnie Stt Cour ofAppe sf t FourhCic t S. j a) yi hi tt e t td aes t al or he t rui hashel t tig ero la lt f ac porton' tus f txe e e t a d ha spj s nal ibiiy or or ai s r t und a s xtnds o nyonewho( )i 1 s r ponsbl f c lci a pa ntoft etxe , nd( wilulyfillt s t tt txe a e es i e or ole ton nd yme hos a s a 2) lf l als o ee ha he a s r pai ' Er n,5 F. a 31 (nt na ctto andquottonmaksomitd) d. wi 91 3d t 9 i er l iain ' ai r te . Onc t g nme a s s atxpa unde j6672,t txpa rbe st bur nof e he over nt seses a yer r he a ye ar he de pr ngt thewa no r ponsbl f t c l c i orpa e oftus f t xes and/ t ta ovi ha s t es i e or he ole ton ym nt r t und a , or ha ny f l e t pa t t sw asno w ilul Se i l at xpay f l o r f s t pa a t x as es e aiur o y he axe t lf . e d. f a er ais r e u es o y ny a s s d, t Secre ar oft Tr he t y he easul m ay aut i t Ator Gener t i tat a colecton acton t ' y hor ze he t ney al o nii e l i i o r d c tea s sme t oj d me t nd r2 U. C. 7 01 S c a to mus b b o h k t i 1 e u e h se s n t u g n u e 6 S. j 4 . u h cin t e r ug tç hn 0 wi ye sa trt asesme oft tx. 26U. C.j6502()1. ar fe he s s nt he a ' ' S. a( ) l t s c s ,t undipu ed f t e t bls t tN ewbilw asa pe s r ponsbl f pa e n hi a e he s t ac s s a i h ha l r on es i e or ym nt oft tutf txeswihhel fom t wa soft e oye ofNe Consr ton,I .($ ' he r s und a t d r he ge he mpl es w tuci nc : ' NC1) durng t tx pe i e ng De embe 31 2003,a t tNe l wiluly f ie t pa t tus i he a rod ndi c r , nd ha wbil lf l a ld o y he r t f nd t s O n J nua y 1 2005, de ega e oft Sec e a y oft Tr as y m ade a a s s m e u axe . a r 0, a l t he r t r he e ur n s e s nt a ns Ne lunde 26U. C.j667 i t n mto $1 , 40, c rpr e e t t al gai t wbil r S. 2 n he mot f 41093. whih e esntd he ot a o ofw ihhol ng a FI t xe ow e by N Clf t pe i e ng D e em be 3l 2003. m unt t di nd CA a s d or he rod ndi c r , Af e pa ng a por i oft a s s en , e l fl s taga ns t U nie St t s i t l r yi ton he s es m t N wbil ied ui i t he t d a e n he Unie Stt Diti tCour f t Ea t r Diti tofVigi a, am i t the wase ild t a t d aes src t or he se n src r ni cli ng ha ntte o r f n o tea t p i . Thedsrc c u t ia re a dg a tds mmayj d me ti f v ro e u d f h mo mt ad itit o r d sg e d n rn e u r u g n n a o f 3 t eg v r me t Ne i v. tdSae , 1 l CV41 201 U. DitLEXI 1 4 l ( D. . h o en n . wbl Uni tts No. :0 l e , 0 S. s. S 2 3 7 E. Va Nov. 201 ) I s doi t dititco t l asamatro 1w t tNe ilwasr ponsbl 22, 0 . n o ng,he src ur hed te f a ha wbl es i e f t pa e ofNCI stus f t xes a t thewiluly f l t pa t m . JLa * or he ym nt ' r t und a , nd ha lf l aied o y he 1 t 26. The .. dit i tc tsr i o t e i s w e e afi s rc our ' ulngs n hes s ues r tnned by t U nie St t s Cour ofA ppe l f t he t d a e t a s or he Fourh Cicui. See N ew bi v. tdStts 441F. t r t l Unie ae , l App' 18 18 ( h Ci. 1 (grei wih x 4, 9 4t r 201 ) a e ng t -- t dititc t'ha Ne l wa r s i ef t pa e ofNCIstus f t xe ,' nd û ha he src our k t wbil s e ponsbl or he ym nt t ' r t und a s'a ç t t Ne lwilulyfie t pa NC1stus fmdtxe ) wbil lf l ald o y ' r t t a f'. The Unie St t i c t t tpr rnotce oft as es m e a a de and f pa e t d a es ndi a es ha ope i he s s nt nd m or ym nt wer i s d t N e bil and t the hasf ie t s ts y hi t x la lt f t pe i e ng e s ue o w l, ha a l d o a i f s a i biiy or he rod ndi De e be 3l 2003. By f lngt a we t c cm r , aii o ns r he ompli , wbil sde m e t ha a te t tt ant Ne l i e d o ve dmitd ha he t s i e e t a pe te wer a s s ed a i thi ,t ta notc ofas es m e a a de a f axe , nt r s , nd nali s e s e s ga ns m ha ie s s nt nd m nd or pa e we e is t hi ,a t the f ie t s tsy t a s s me . Thec tc ude t t ym nt r s ued o m nd ha al d o a if he s e s nt our oncl s ha t governm ent' alegatonsar s t entt es abls N ew bils labiiy f t t us f r he s l i e ufici o t ih l' i lt or he r t und ecover y penali ass ed agai thi f t r evantperod. tes ess ns m or he el i The c t us ne dee mi t a ountofla lt l i û l e t bls d i t x l t t our m t xt tr ne he m ibiiy. t s û l sa ihe n a aw ha we a as es m e i e il d t a l ga pr s pton ofc r t s. Unied St t v. orD 't lae nc , n s s nt s ntte o e l e um i or ec nes ' ' t a es Fi Ia i l . 536U. 238, ( S. 242 2002) Ac r ngl i i t t pa ' bur nt pr t tt l e l . codi y,t s he u yers de o ove ha he ntma Re nue Se vi s c put tons c e ni t am ountoft as e s e a e e r ve r ce' om a i onc r ng he he s s m nt r r oneous U nied . t Stt v. aes Pompo o,635F. 293,296(t Ci.1980 . ni 2d 4h r ) The Unie Stt shass td ae ubmitd as n de a a i fom Sus n C.Blmt ar nueofi e te wor clr ton r a t , eve fc r a s wih t I e al e nue Se v ce al w ih an a ot tta c i f rt t s fm d r ove y dvi or t he nt m R ve r i , ong t cc m r ns r pt o he nz t t ec r penali ass sed agai N ew bilf t 2003 t year. Thes s i i es abls t tt s t es es nst l or he ax * e ubm ssons t i h ha nz t *TheUnied St esalo s it e dencedemonsr tngt tNe l i noton a tvedut wih t t at s ubm ted vi ta i ha wbil s ci y t he ar f c ,t e s tsyi isr r m e sunde t Ser ceM e r Ci lRelefAct See50U. C. med or es her by a if ng t equie nt r he vi mbe s vi i . S. App. j5 ( ) 2lb . 4 f nd r co r pe te i t a ' e ve y nali s n he mountof$1 , 40 we ea s s ed a i tNewbilon J nuar 1 u 41093. r s e s gans l a y 0, 2005,a t tt un i ba a eoft a s s m e , usa c ue i e e ta c t , s$55, 27 nd ha he pa d l nc he s e s nt pl c r d ntr s nd oss wa 608. a ofJ 29, 5. N ewbilhasno dipu e t va i t oft as e s e ort c l ul tonsm a s une 201 l t s t d he ldiy he s s m nt he a c a i de by t I er Revenue Ser ce. The courti convi he nt nal vi s nced t t decl aton and accounttans i hat he ar i r cr pt pr de a s f c en e de i r bas sf a a a d ofda a s i f vo oft U nie St t s a t t ovi uf i i t vi nta y i or n w r m ge n a r he t d a e , nd ha noh ai gi ne e sr Ac o dngy j d me t l b e tr di fv ro t Uni d S ae f rte e rn s c say. e r i l,u g n wil e nee n a o f he t tts o h e ba anc due a ofJ 29,201 pl a opr a e i e e t l e s une 5, us ppr i t nt r s . Concl on usi Fort ras sae t c t l grntt Unie Stts motonf dea tj me he e ons ttd,he our wil a he td ae ' i or ful udg nt agans Ne l. J m e wilb e e e i f voroft Unie St t sa a ns Ne l i t i t wbil udg nt l e ntr d n a he t d a e nd gai t wbil n he amountof$55, 27,a ofJ ne29,201 pl i ee tt r afe,purua t 28U. C.j 1 () 608. s u 5, us ntrs he e tr s nt o S. 961c a 26U. C.j6621a( ,untl i i f l nd S. ()2) ipad n ul. The Cl r i di e t t s nd ce tfe co e oft sm e or nd opi on a t e k s r c ed o e rii d pi s hi m a um ni nd he accom panyi or t t def ng der o he endantand al couns ofr d. 1 el ecor EN TER :Thi s l N ay ofJ y,2015. W-d ul Chi U nied St esD it i Judge ef t at s rct
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