United States District Court, D. Nebraska
CHRISTOPHER D. COOPER, President, e-Formulate Inc., Petitioner,
UNITED STATES OF AMERICA, Respondent.
MEMORANDUM AND ORDER
Richard G. Kopf Senior United States District Judge.
matter is before the court on the pro se Petitioner's
Motion to Quash IRS Summons (Filing No. 1). For the
reasons set forth below, the Motion will be denied.
Internal Revenue Service (“IRS”) is conducting an
investigation to determine whether Petitioner Christopher D.
Cooper, president of e-Formulate, Inc., is a
“responsible person” for purposes of the Trust
Fund Recovery Penalty in connection with unpaid federal
employment taxes owed by e-Formulate. Petitioner seeks to
quash an IRS Summons issued to Wells Fargo Bank, N.A.,
requiring Wells Fargo to provide copies of e-Formulate's
bank records. Petitioner asks the court to order the IRS to
“cease and desist any and all actions” until his
legal challenges to the Summons are addressed, as well as
compensation for his time and expenses in responding to the
IRS's “frivolous” Summons. (Filing No. 1
at CM/ECF pp. 18-19.)
behalf of Respondents IRS and Revenue Officer Colby Schwan, the
United States Attorney's Office has filed an Opposition
to Petitioner's Motion to Quash IRS Summons (Filing No.
7) and an Index of Evidentiary Material in support
thereof (Filing No. 6). The Petitioner has not
responded to the Respondents' Opposition.
the Petitioner has not offered any evidence opposing or
contradicting the following facts set forth in the
Declaration (Filing No. 6-1) filed by Respondent IRS
Revenue Officer Schwan, I shall consider such facts
Revenue Officer Colby Schwan is in the process of
investigating the liability of Petitioner Christopher D.
Cooper for Trust Fund Recovery Penalties relating to unpaid
federal employment taxes owed by e-Formulate, Inc., for the
following taxable periods: June 30, 2015; September 30, 2015;
December 31, 2015; and March 31, 2016.
furtherance of this investigation, and in accordance with 26
U.S.C. § 7602, Schwan issued an IRS Summons to Wells
Fargo Bank, N.A., on May 3, 2017. The Summons directed Wells
Fargo to produce for examination certain documents and
records concerning banking matters of e-Formulate, Inc., by
June 1, 2017. (Filing No. 6-1 at CM/ECF p. 4.)
Because Petitioner Christopher D. Cooper is the President of
e-Formulate, the IRS believes that e-Formulate's banking
records are highly relevant in determining whether or not
Petitioner is a “responsible person” of that
entity for purposes of the Trust Fund Recovery Penalty.
May 4, 2017, and in accordance with 26 U.S.C. § 7603(b),
Schwan served an attested copy of the IRS Summons described
in paragraph (2), above, on Wells Fargo Bank, N.A., by
certified mail, as evidenced in the certificate of service on
the reverse side of the Summons. (Filing No. 6-1, at
CM/ECF p. 5.)
May 4, 2017, Schwan also served the notice required by
section 26 U .S .C. § 7609(a) on Petitioner Christopher
D. Cooper by certified mail, as evidenced in the certificate
of service of notice on the reverse side of the Summons.
(Filing No. 6-1, at CM/ECF p. 5.)
documents and records sought by the Summons are not already
in the possession of the Internal Revenue Service.
Schwan believes he has taken all administrative steps
required by the Internal Revenue ...