Jerry and Patricia A. Dixon, et al - Page 31




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               On July 1, 1987, the District Court granted the Government's           
          petition to serve Mr. Kersting with the summons.  Mr. Kersting              
          produced some documents to Revenue Agent Larry Tahara in response           
          to the summons but did not fully comply with the summons.                   
          Mr. Kersting challenged the summons during protracted summons               
          enforcement proceedings that followed.                                      
               Following an August 1987 hearing, the District Court ordered           
          Mr. Kersting to produce the summoned documents by February 1988.            
          After another hearing in March 1988, the District Court, in May             
          1988, held Mr. Kersting in contempt and threatened him with fines           
          if the summoned documents were not produced.  During this period,           
          Mr. Izen filed a motion to intervene in the summons proceedings             
          on behalf of his test case petitioners.  The District Court                 
          denied Mr. Izen's motion.                                                   
               Both Mr. Kersting and Mr. Izen appealed the District Court's           
          decision enforcing the summons to the Court of Appeals for the              
          Ninth Circuit.  The Court of Appeals remanded the case to the               
          District Court to determine whether Mr. Kersting had                        
          substantially complied with the summons so as to moot the                   
          appeals.  See United States v. Kersting, 891 F.2d 1407, 1410-1411           
          (9th Cir. 1989).  Despite its remand, the Court of Appeals                  
          considered and rejected Mr. Kersting's arguments that the                   
          District Court erred in concluding that the Internal Revenue                
          Service acted in good faith in issuing the summons.  See id. at             
          1411-1413.  Mr. Kersting eventually produced the summoned                   
          documents.                                                                  

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