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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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