United States v. National State Bank, Civ. No. 70-64.
| Decision Date | 19 December 1970 |
| Docket Number | Civ. No. 70-64. |
| Citation | 322 F. Supp. 986 |
| Parties | UNITED STATES of America and John S. Wills, Special Agent, Internal Revenue Service, Petitioners, v. NATIONAL STATE BANK, Respondent, and George Green, M. D., and Margot M. Green, his wife, Intervening Defendants. |
| Court | U.S. District Court — Eastern District of Illinois |
Henry A. Schwarz, U. S. Atty., East St. Louis, Ill., and Jeffrey D. Snow, Tax Division, Justice Dept., Washington, D. C., for petitioners.
Louis Horman, Metropolis, Ill., for respondent.
Michael Avedisian and Andrew H. Avedisian, Paducah, Ky., for intervening defendants.
A petition to enforce Internal Revenue summons was filed by the United States of America, and John S. Wills, Special Agent, Internal Revenue Service. The proceeding is brought under the authority of Sections 7402(b) and 7604(a) of the Internal Revenue Code of 1954 (26 U.S.C.A. §§ 7402(b) and 7604(a)).
The petitioner Wills is a special agent of the Internal Revenue Service and is authorized to issue Internal Revenue summonses under the authority of 7602 of the Internal Revenue Code of 1954 (26 U.S.C. § 7602). Respondent is the National State Bank, a banking corporation located in Metropolis, Illinois, within the jurisdiction of this Court. The petition alleges that the special agent has been participating in an investigation to determine the income tax liabilities for the years 1966, 1967 and 1968 of one Dr. George Green who resides in Metropolis, Illinois; that the respondent is in possession and control of various books, records, accounts, papers and information relating to the tax liabilities of Dr. Green for the period in question; that on November 4, 1969, a summons was issued by the petitioner, directing the respondent to appear and to testify and produce records relating to the tax liabilities of the taxpayer; that the respondent failed and refused to appear in response to the summons and to testify or produce the records demanded; that it is essential for the determination of the tax liabilities of the taxpayer, Dr. George Green, that the respondent bank and its officers and employees be required to testify and produce the records demanded.
Upon failure of the respondent to appear as ordered, a show cause order was issued by this Court, directing the respondent, through its cashier or one of its duly authorized officials, to appear before the United States District Court on July 2, 1970 to show cause why it should not be compelled to obey the summons. The show cause order was subsequently continued and was set for hearing before the Court on July 31, 1970. In the interim, George Green, M. D., and Margot M. Green, his wife, pursuant to their motion, were permitted to intervene as defendants. Intervenors filed their notice to take deposition upon oral examination and for subpoena duces tecum, directed to Joseph D. Henry, Special Agent, Internal Revenue Service, Louisville, Kentucky, for the 26th day of August, 1970, and to Robert Schulman, Special Agent, Internal Revenue Service, 120 Church Street, New York, New York, on the 28th day of August, 1970. Petitioners have filed their motion to quash subpoena duces tecum and notice to take deposition and to limit discovery.
On July 27, 1970, attorneys for intervenors and petitioners entered into an agreed stipulation, wherein they stipulated that the hearing on the 31st day of July, 1970, should be limited to the question of determining whether petitioners' motion to quash the taking of depositions should be granted or denied. Notwithstanding the stipulation, at the hearing on July 31, 1970, both petitioners and intervenors introduced evidence bearing on the merits of the petition, as well as the motion to quash the subpoena duces tecum and the taking of oral depositions. The Court has considered the entire evidence presented.
As was stated in United States v. Salter, 432...
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United States v. National State Bank
...investigation of taxpayers' civil liability, thus raising the possibility of their subsequent criminal prosecution. The district court, 322 F.Supp. 986, resolved the issue in favor of enforcement of the summons. We affirm, on authority of Donaldson v. United States, 400 U.S. 517, 91 S.Ct. 5......