Bernard Goldfine v. Fred G. Pastore, Group Supervisor, Intelligence Division, Internal Revenue Service, 261 F.2d 519, 1st Cir. (1958)
Bernard Goldfine v. Fred G. Pastore, Group Supervisor, Intelligence Division, Internal Revenue Service, 261 F.2d 519, 1st Cir. (1958)
2d 519
59-1 USTC P 9127
Appellants have filed a notice of appeal from an 'interim order' by the United
States District Court for the District of Massachusetts directing them to turn
over certain records to the Internal Revenue Service to assist the government in
making an audit of the tax liabilities of certain corporations whose records are
in the control of Bernard Goldfine or Mildred Paperman.
The proceeding before the district court was initiated by the filing on behalf of
the Internal Revenue Service of a petition for enforcement of an internal
revenue summons, pursuant to the provisions of 7402(b) and 7604 of the
Internal Revenue Code of 1954, 26 U.S.C.A. 7402(b), 7604. See Brody v.
United States, 1 Cir., 1957, 243 F.2d 378, certiorari denied, 1957, 354 U.S.
923, 77 S.Ct. 1384, 1 L.Ed.2d 1438.
The district court at the initial stages of the proceeding elected not to issue a
turn-over direction in the breadth requested by the government. Instead it chose
to exclude from its order the records relating to all tax years with respect to
which there were any contentions made by the respondents that the taxing
authorities had already completed an audit (the documents in question had been
in their previous possession) whether or not the United States at this time
admitted that such a prior audit had been made. The district court also chose to
exclude from its enforcement order the records relating to any tax year with
respect to which respondents had made the contention that the statute of
limitations would apply (unless fraud were found). In addition, it is to be noted
that although the petition for enforcement of the internal revenue summons
broadly requested an order for the turn-over of 'stock certificate book' and other
unspecified documents of each corporation, the district court elected to strike
out these requests from the order which it entered.
The district court expressly reserved jurisdiction of the proceeding, stating that
it proposed to issue 'an interim order, for immediate compliance, and leave
other aspects of the matter to await further testimony.'
As thus limited, the 'interim order' of the court directed respondents to produce
the records on or before today, Monday, December 8. The district court also
denied an application for a stay of its order pending appeal. Respondents,
having filed a notice of appeal from the aforesaid interim order, have filed an
application to this court for an order staying the execution of the interim order.
An order will be entered denying appellants' application for stay of the District
Court's order.