Free Intervenor Complaint - District Court of California - California

Case 3:08-cv-00301-JLS-JMA

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Filed 02/19/2008

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KAREN P. HEWITT United States Attorney TOM STAHL, California State Bar No. 78291 Assistant United States Attorney Chief, Civil Division LAUREN M. CASTALDI JUSTIN S. KIM Trial Attorneys, Tax Division U.S. Department of Justice P.O. Box 683, Ben Franklin Station Washington, D.C. 20044-0683 Telephone: (202) 514-9668 Facsimile: (202) 307-0054 E-mail: [email protected] E-mail: [email protected] Attorneys for the United States of America IN THE UNITED STATES DISTRICT COURT

12 FOR THE SOUTHERN DISTRICT OF CALIFORNIA 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -1Intervenor Complaint LAUREL HILL ESCROW SERVICES, INC., a) California corporation, ) Case No. 08-CV-0301-H-JMA ) Plaintiff, ) )UNITED STATES' INTERVENOR v. )COMPLAINT TO ASSERT CLAIM TO )PROPERTY AND TO DETERMINE IDEVELOPMENT, INC., a California )RIGHTS TO PROPERTY corporation dba A&M TOWING; ) ADVANTAGE TOWING COMPANY, INC., ) Removed from San Diego County, a California corporation; MICHAEL ) California Superior Court BRANDEN, an individual; RE/MAX; ) Case No. 37-2007-00066921-CU-MC-CTL COMMUNITY BANK; JIMMY JOHNSON'S ) KEARNY MESA CHEVROLET; LOMA ) RIVIERA 76; NCO FINANCIAL SYSTEMS, ) INC.; BRIDGET LEGGERRETTE; GEORGE ) PONCE; THE HOSE PROS; VOIT ) COMMERCIAL BROKERAGE; WELCH'S ) TIRES, INC.; AT&T; and CALIFORNIA ) DEPARTMENT OF MOTOR VEHICLES, ) ) ) Defendants, ) ) v. ) )

Case 3:08-cv-00301-JLS-JMA

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1 THE UNITED STATES OF AMERICA, 2 Defendant. 3 4 The United States, through counsel, complains and alleges as follows: 5 I. INTERVENOR COMPLAINT 6 Introduction 7 1. 8 of IDevelopment, Inc., which was sold, leaving $257,645.00 in net proceeds to be distributed by 9 Plaintiff. Because the United States has valid liens against IDevelopment, Inc. for unpaid federal tax 10 liabilities as set forth below, the United States is entitled to the proceeds in this matter. 11 Jurisdiction and Venue 12 2. 13 Attorney General of the United States, with the authorization and at the request of the Associate Area 14 Counsel of the Internal Revenue Service, a duly authorized delegate of the Secretary of Treasury. 15 3. 16 States asserts a lien right in the proceeds which are the subject of the underlying action. 17 4. 18 at issue in this matter are located within said district. 19 Federal Tax Liabilities of IDevelopment, Inc. 20 5. 21 made assessments against IDevelopment, Inc. for unpaid federal employment taxes, penalties, interest, 22 and other statutory additions accruing thereto as follows: 23 24 25 26 27 28 The amounts in the Total Balance column of this chart reflect what the taxpayers owed including accrued interest and statutory additions up through January 31, 2008. -2Intervenor Complaint
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) ) ) ) )

The United States asserts that federal tax liens attach to all property and rights to property

This action is brought according to 26 U.S.C. §§ 7401 and 7403 at the direction of the

The United States claims an interest according to 26 U.S.C. § 7424 because the United

Jurisdiction and venue are proper in the Southern District of California, because the funds

On the dates indicated below, a duly authorized delegate of the Secretary of the Treasury

Type of Tax 941

Tax Period 12/31/2004

Total Balance1 $3,210.41

Date of Assessment 04/16/2007

Case 3:08-cv-00301-JLS-JMA

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941 941 941 941 941 941 941 940

06/30/2005 09/30/2005 12/31/2005 03/31/2006 06/30/2006 09/30/2006 12/31/2006 12/31/2006

$17,828.27 $56,917.62 $72,529.11 $74,678.83 $60,152.28 $47,889.47 $45,942.65 $481.54 Total: $379,630.18

10/09/2006 09/25/2006 11/06/2006 12/18/2006 12/18/2006 02/05/2007 04/30/2007 07/23/2007

Despite timely notice and demand for payment of the federal tax assessments described in

paragraph 5, IDevelopment, Inc. has neglected or refused to pay fully the assessed amounts to the United States. 7. IDevelopment, Inc. is therefore indebted to the United States in the amount of the federal

tax assessments, plus statutory additions which as provided by law have accrued since the dates of the assessments. 8. On the dates of the assessments identified in paragraph 5 above, federal tax liens arose in

favor of the United States according to 26 U.S.C. §§ 6321 and 6322 and attached to all property and rights to property of IDevelopment, Inc.. 9. A Notice of Federal Tax Lien relating to the federal income tax assessments for the period

ending December 31, 2004 was filed against IDevelopment, Inc. on July 3, 2007 with the California Secretary of State. 10. A Notice of Federal Tax Lien relating to the federal income tax assessments for the

periods ending June 30, September 30, and December 31 2005, and March 31, June 30, and September 30, 2006 was filed against IDevelopment, Inc. on February 1, 2007 with the California Secretary of State. 11. A Notice of Federal Tax Lien relating to the 941 federal income tax assessments for the

period ending December 31, 2006 was filed against IDevelopment, Inc. on April 24, 2007 with the California Secretary of State.

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Intervenor Complaint

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12.

As of January 31, 2008, there remains due and owing from IDevelopment, Inc. the sum of

approximately $379,630.18, with respect to the income tax assessments described in paragraphs 5, plus accrued but unassessed interest, penalties, and other statutory additions as provided by law. 13. The United States claims an interest in the deposited funds at issue by virtue of its

recorded statutory liens against the property of IDevelopment, Inc. WHEREFORE, the United States requests that the Court: A. Declare that the United States has valid and subsisting federal tax liens, which attach to all

property and rights to property of IDevelopment, Inc., including but not limited to the proceeds herein. B. C. Adjudge the rights and liabilities of parties to this suit. Order distribution of the proceeds to the United States and to the other claimants in this

action in accordance with the priority determined by the Court. D. Award the United States such other and further relief as the Court deems just and proper.

Respectfully submitted this 19th day of February, 2008.

KAREN P. HEWITT United States Attorney TOM STAHL Assistant United States Attorney Chief, Civil Division /s/ Lauren Castaldi JUSTIN S. KIM LAUREN M. CASTALDI Trial Attorneys, Tax Division U.S. Department of Justice Attorneys for the United States of America

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Intervenor Complaint