Opinion
13856-20
04-18-2022
NAJEEB SHIHADEH & MARY C. SHIHADEH, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Albert G. Lauber, Judge.
On September 23, 2021, this case was stricken from the Court's November 29, 2021, San Francisco, California, trial session and jurisdiction was retained by the undersigned. On February 4, 2022, respondent filed a motion to compel production of documents and a motion to compel responses to interrogatories. By Order served February 10, 2022, we directed petitioners, on or before March 9, 2022, to make available to respondent's counsel for inspection and copying the documents requested in respondent's requests for production of documents served on petitioners on August 31, 2021, and to complete and serve upon respondent's counsel responses to interrogatories served upon petitioners that same day. We warned petitioners that, if they did not fully comply with our order, we would be "strongly inclined to impose sanctions pursuant to Tax Court Rule 104."
On April 13, 2022, respondent filed a Motion to Impose Sanctions. In his Motion respondent represents that petitioners have not supplied any of the requested documents or any responses to his interrogatories. He further represents that he spoke with petitioners' counsel, who confirmed that no production was made. Respondent requests that the Court enter a judgment of default or other sanctions against petitioners under Tax Court Rule 104(c)(3).
We will give petitioners one final chance to comply with our February 10, 2022, order. By May 6, 2022, petitioners must fully comply with that Order by supplying to respondent's counsel all requested documents and all requested responses to interrogatories. If petitioners fail to comply, we will grant respondent's Motion and impose the following sanctions: (1) all documents that petitioners should have made available, but did not make available, to respondent's counsel, as directed in our February 10, 2022, Order, shall be excluded from evidence in this case; and (2) petitioners' distributive share of ordinary income from Cal Murphy LLC for the taxable year 2016 will be deemed adjusted in the amount of $471, 105, as set forth in the notice of deficiency upon which this case is based.
In consideration of the foregoing, it is
ORDERED that petitioners shall produce to respondent's counsel, on or before May 6, 2022, at 100 First Street, San Francisco, California 94105, for inspection and copying, the documents set forth in respondent's request for production of documents served upon petitioners on August 31, 2021. If petitioners object to any particular document request, they shall file a response to this Order by May 6, 2022, stating their specific objections. It is further
ORDERED that petitioners shall complete and serve upon respondent's counsel, on or before May 6, 2022, responses to those interrogatories served upon petitioners on August 31, 2021. If petitioners object to any particular interrogatory they shall file a response to this Order by May 6, 2022, stating their specific objections. It is further
ORDERED that respondent shall file with the Court, on or before May 20, 2022, a status report detailing the then-present status of this case.