International Automated Systems (fka IAUS)

[scion]

Plaintiffs filed a tax return for the tax year 2012, and the return was selected for examination by the IRS. Zielke Decl. ¶ 4. On June 12, 2015, Revenue Agent Zielke requested that Neldon and Glenda Johnson provide him with business and personal bank statements. Id. . The Plaintiffs provided Revenue Agent Zielke only a partial year of bank statements and failed to provide the remaining requested bank statements. Id.

Consequently, on August 20, 2015, Revenue Agent Zielke issued a third party summons to Zions Bank. Zielke Decl, ¶5. The Plaintiffs did not move to quash this summons. From the records obtained through the afore- mentioned summons to Zions Bank, Revenue Agent Zielke discovered a cashier’s check made payable to Glenda Johnson in the amount of $1,498,150.85 and deposited into an undisclosed account at Wells Fargo Bank. Id.

On October 1, 2015, in furtherance of the examination and in accordance with 26 U.S.C. §§ 7602 and 7603, Revenue Agent Zielke served an attested copy of an IRS administrative summons on Wells Fargo Bank. Zielke Decl. ¶ 6. The summons directed Wells Fargo Bank to produce “copies of signature cards, monthly bank statements, bank deposits slips, deposit items, credit memos, cancelled checks, and debit memos drawn on accounts which Neldon Johnson or Glenda Johnson either owns or is a signer for the period December 2011 – January 2013.” Id. The IRS did not possess any of the information or documents requested in the summons. Zielke Decl. ¶ 7. The information and documents were needed to reconstruct Plaintiffs’ income for the tax year 2012, which is relevant to the determination of their correct income tax liability. Zielke Decl. ¶ 8.

On October 1, 2015, in accordance with 26 U.S.C. § 7609(a), notice of the issuance of the summons, a copy of the summons, and a notice explaining Plaintiffs’ right to bring a proceeding to quash the summons were sent via certified mail to Plaintiffs at their last known address. Zielke Decl. ¶ 9.

All administrative steps required by the Internal Revenue Code for issuance of the summons described above have been taken. Zielke Decl. ¶ 10. No Justice Department referral, as defined by 26 U.S.C. § 7602(d)(2), is in effect for Plaintiffs. Zielke Decl. ¶ 11.

OCR extract
Doc 4 PDF file
https://www.scribd.com/doc/293679438/Johnson-Et-Al-v-USA-Doc-4-Filed-18-Dec-15