Opinion
16141-22
03-20-2023
GEORGE WALLS, JR., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER TO SHOW CAUSE
David Gustafson, Judge.
Now before the Court are two motions filed March 17, 2023, by the Commissioner-- a motion (Doc. 11) to compel petitioner George Walls, Jr., to produce documents, which we will grant in part, and a motion (Doc. 10) asking us to issue to Mr. Walls an "Order to Show Cause", which we hereby grant.
Background
The petition (Doc. 1) that Mr. Walls filed seems to indicate two issues in dispute in this case: Social Security income and gambling losses. As we have previously ordered, this case will be tried in about seven weeks, at a session in Washington, D.C., beginning May 8, 2023. We issued on January 13, 2023, a notice (Doc. 8) setting this case for trial at that session, and our standing pretrial order ("SPTO"; Doc. 9). The SPTO gave the parties instructions about preparing for trial, including the instruction to file pretrial memoranda by April 17, 2023, and the instruction to file their stipulation and proposed trial exhibits by April 24, 2023.
Motion to Compel (Doc. 11)
The Commissioner's motion to compel alleges that on February 17, 2023, he served on Mr. Walls two document requests, asking for
1. Cancelled checks, ATM receipts, and account statements for all gambling losses claimed.
2. All documents you intend to introduce into evidence during trial of this case. [Doc. 11 at 11.]
--but that Mr. Walls stated that he had given such documents to his return preparer. The Commissioner alleges that the return preparer has stated that he returned all such documents to Mr. Walls. In any event, Mr. Walls (the Commissioner alleges) has not provided the documents.
These are reasonable requests that seek documents relevant to this case. The Commissioner needs to see these documents in order to prepare for trial and to cooperate effectively in preparing the parties' joint stipulation of facts.
We will therefore grant the motion to compel, to the extent set out below.
Motion for an Order to Show Cause (Doc. 10)
Under this Court's Rule 91, the parties have a duty to cooperate in preparing a joint stipulation (i.e., a written statement signed by both parties) setting out the agreed facts in the case. Under the SPTO, that stipulation is due to be filed by April 24, 2023. However, the Commissioner's motion (Doc. 10) alleges that on February 17, 2023, he sent to Mr. Walls a proposed stipulation of facts but that Mr. Walls has not responded. Without prejudging the truth or falsehood of the alleged facts stated in the proposed stipulation, we can say that the alleged facts are plausible, and that they are verifiable propositions that we can fairly require Mr. Walls to admit, deny, or correct (including the State of Mr. Walls's residence, facts about the audit of his 2019 return, and the authenticity of documents).
On the apparent facts, it would seem that Mr. Walls may be unreasonably refusing to stipulate facts to which he may not actually object. It is therefore
ORDERED that the Commissioner's motion to show cause (Doc. 10) is granted. It is further
ORDERED that Mr. Walls shall, on or before April 3, 2023, file and serve a response in compliance with the provisions of Rule 91(f)(2), showing why the matters set forth in the Commissioner's proposed stipulation of facts should not be deemed admitted for purposes of the pending case. For the matters that Mr. Walls does admit, his response should so indicate; for the matters he does not admit, his response should explain why and should state what he believes the actual facts to be. If by April 3 no response is filed with respect to any matter or portion thereof, or if the response is evasive or not fairly directed to the proposed stipulation or portion thereof, then that matter or portion thereof will be deemed stipulated for purposes of the pending case, and an order will be entered accordingly, pursuant to Rule 91(f)(3). It is further
ORDERED that, no later than April 14, 2023, the Commissioner shall file and serve a reply (or, if petitioner has failed to file and serve a response to this Order to Show Cause, then the Commissioner shall file a status report).
It is further
ORDERED that the motion to compel (Doc. 11) is granted in part, in that no later than April 3, 2023, Mr. Walls shall cause to be delivered to Internal Revenue Service SB/SE Associate Area Counsel, Suite 2600, 77 K Street, NE, Washington, DC 20002, for inspection and copying, all of the "Cancelled checks, ATM receipts, and account statements for all gambling losses claimed" (Request No. 1) and all other "documents you intend to introduce into evidence during trial of this case" (Request No. 2). To the extent that the motion to compel requests preclusive relief in the alternative, the motion is denied in part without prejudice.