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IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
§Plaintiff, § v. §
§ CIVIL NO. 4:14-cv-0027 JOHN PARKS TROWBRIDGE, JR., § FREEDOM VENTURES, UBO, and § MONTGOMERY COUNTY TAX OFFICE, §
§ Defendants. §
COMPLAINT
Plaintiff, United States of America, pursuant to 26 U.S.C. '§ 7401, 7402, and 7403, at the
direction of the Attorney General of the United States, or his delegate, and at the request of the
Secretary of the Treasury, or his delegate, brings this action to reduce to judgment federal
income tax assessments against defendant, John Parks Trowbridge, Jr., and foreclose tax liens
associated with the assessments against real property known as 25117 Ramrock Drive, Porter,
Texas 77365.
JURISDICTION AND VENUE
1. This Court has jurisdiction over this action pursuant to 26 U.S.C. ' 7402 and 7403and 28
U.S.C. '' 1340, and 1345.
2. Venue is proper pursuant to 28 U.S.C. '' 124(b) and 1396.
PARTIES
3. Plaintiff is the United States of America.
4. Defendant, John Parks Trowbridge, Jr., resides within the jurisdiction of this Court.
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U.S. Complaint Page 2 of 5
5. Defendant, Freedom Ventures, UBO, has been named as a party to this action, as required
by 26 U.S.C. § 7403(b), because it has or may claim an interest in the property upon which the
United States seeks to foreclose its lien.
6. Defendant, Montgomery County Tax Office, has been named as a party to this action, as
required by 26 U.S.C. § 7403(b), because it has or may claim an interest in the property upon
which the United States seeks to foreclose its lien.
FACTS
7. Defendant, John Parks Trowbridge, Jr. owes the United States the following amounts of
unpaid federal income taxes, penalties, and interest:
Type of Tax Tax Period Assessment Date Amount Due Through (September 1, 2013)
1040 1993 1/20/2004 $371,173.71
1040 1994 1/20/2004 $482,760.14
1040 1995 1/20/2004 $481,310.16
1040 1996 1/16/2004 $1,295,799.01
1040 1997 1/16/2004 $655,292.45
TOTAL: $3,286,335.47
8. Defendant, John Parks Trowbridge, Jr., was given notice and demand was made for
payment of the unpaid taxes on or about the assessment dates listed in paragraph 7.
9. The United States recorded notices of its tax lien securing the above liabilities in the real
property records of Montgomery County, Texas, on or about October 2, 2012, and July 7, 2011,
for the tax periods listed in paragraph 7.1
COUNT I (Judgment for Outstanding Tax Liabilities)
10. The United States incorporates the allegations set forth in paragraphs 7 through 9.
1 Copies of the Notices of Federal Tax Lien are attached as Government Ex. A.
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11. As of September 1, 2013, defendant, John Parks Trowbridge, Jr., owes the United States
$3,286,335.47 for federal income taxes, penalties, and interest accrued for the tax periods
referenced in paragraph 7. Defendant, John Parks Trowbridge, Jr., further owes all interest and
statutory additions that accrue from September 1, 2013, until his tax liabilities are paid.
COUNT II (Foreclosure of Tax Liens)
12. The United States incorporates the allegations set forth in paragraphs 7 through 11.
13. On April 25, 2005, David Powers Homes S.T. LTD transferred by warranty deed the real
property located at 25117 Ramrock Drive, Porter, Texas (“Porter property”) to defendant, John
Parks Trowbridge, Jr.,, said property being more specifically described as follows:
Lot Sixteen (16), Block One (1), of Bentwood, Section One (1), a Subdivision of 156.8 Acres of Land, Out of the William Massey Survey, A-391, and the Mary Owens Survey, A-405, in Montgomery County, Texas, as Imposed by the Map and Dedication Records in Cabinet G, Sheets 138A through 141A of the Map Records of Montgomery County, Texas.
14. On or about May 2, 2005, the warranty deed was recorded, on that same date, a deed of
trust in the amount of $299,768 with DPH Mortgage, Ltd., was recorded.
15. On or about October 25, 2012, Real Property Bill of Exchange Contract and Agreement
between defendants, John Parks Trowbridge, Jr. and Freedom Ventures, UBO, was filed with the
Montgomery County Clerk’s Office. The contract purported to transfer the Porter Property from
defendant, John Parks Trowbridge, Jr., to defendant, Freedom Ventures, UBO, for the sum of
$1,000.00.
16. The transfer described in paragraph 15 was intended to hinder and delay the collection
efforts of the Internal Revenue Service and to defraud plaintiff, United States of America, and
should be set aside as void with respect to the United States.
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17. Plaintiff, United States of America, has a valid and subsisting federal tax liens on all
property and rights to property belonging to the defendant, John Parks Trowbridge, Jr., including
his interest in the Porter Property.
18. The federal tax liens against the defendant, John Parks Trowbridge, Jr., should be
foreclosed upon the Porter property, the Porter property should be sold free and clear of all
rights, titles, claims, and interests of the parties, and the proceeds of the sale should be
distributed according to law.
WHEREFORE, plaintiff, United States of America, respectfully requests that the Court order the
following:
A. As of September 1, 2013, defendant, John Parks Trowbridge, Jr., owes the United States
$3,286,335.47 for federal income taxes, penalties, and interest accrued for the tax periods
referenced in paragraph 7. Defendant, John Parks Trowbridge, Jr., further owes all
interest and statutory additions that accrue from September 1, 2013, until his tax
liabilities are paid.
B. That the United States has a perfected lien interest in all property and rights to property
belonging to defendant, John Parks Trowbridge, Jr., as of the assessment date, or
acquired thereafter.
C. That the federal tax liens against the defendant, John Parks Trowbridge, Jr., be foreclosed
upon the Porter Property, the Porter Property should be sold free and clear of all rights,
titles, claims, and interests of the parties, and the proceeds of the sale should be
distributed according to law.
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DATE: January 7, 2014 KENNETH MAGIDSON United States Attorney
/s/ Joshua D. Smeltzer JOSHUA D. SMELTZER Attorney-in-Charge State Bar (Maryland) Trial Attorney, Tax Division U.S. Department of Justice 717 N. Harwood, Suite 400 Dallas, Texas 75201 (214) 880-9735 (214) 880-9741 (Fax) [email protected]
ATTORNEY FOR THE UNITED STATES
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. (a) PLAINTIFFS DEFENDANTS

(c) (Firm Name, Address, and Telephone Number) (If Known)
I. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for
(For Diversity Cases Only) and One Box for Defendant
PTF DEF PTF D

V. NATURE OF SUIT (Place an “X” in One Box Only) CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
PERSONAL INJURY PERSONAL INJURY
Habeas Corpus:

(See instructions):
United States of America
Joshua D. Smeltzer, US Dept. of Justice - Tax Division 717 N. Harwood Street, Suite 400, Dallas, Texas 75201
John Parks Trowbridge, Jr., Freedom Ventures, UBO, and Montgomery County Tax Office
Montgomery
26 U.S.C. secs. 7401, 7402, & 7403
Suit to reduce tax assessments to judgment, foreclosure federal tax liens, and set aside conveyance.
3,286,335.47
01/06/2014 /s/ Joshua D. Smeltzer
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III. Residence (citizenship) of Principal Parties.

VI. Cause of Action. Do not cite jurisdiction statutes unless diversity.
VII. Requested in Complaint.
Date and Attorney Signature.
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SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION
UNITED STATES OF AMERICA, §
FREEDOM VENTURES, UBO, and §
MONTGOMERY COUNTY TAX OFFICE, § §
UNITED STATES’ CERTIFICATE OF INTERESTED PARTIES
Plaintiff, United States of America, certifies to the Court that the following are, or may
be, financially interested in the outcome of this litigation:
1. UNITED STATES OF AMERICA, through its agency the INTERNAL
REVENUE SERVICE.
3. FREEDOM VENTURES, UBO.
4. MONTGOMERY COUNTY TAX OFFICE.
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DATE: January 7, 2014 KENNETH MAGIDSON
United States Attorney
/s/ Joshua Smeltzer
Maryland Bar (no bar #) Admitted pursuant to 28 U.S.C. §517
717 N. Harwood, Suite 400
Dallas, Texas 75201 (214) 880-9735
(214) 880-9741 (FAX)
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SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION
UNITED STATES OF AMERICA, §
FREEDOM VENTURES, UBO, and §
MONTGOMERY COUNTY TAX OFFICE, § §
UNITED STATES’ CERTIFICATE OF INTERESTED PARTIES
Plaintiff, United States of America, certifies to the Court that the following are, or may
be, financially interested in the outcome of this litigation:
1. UNITED STATES OF AMERICA, through its agency the INTERNAL
REVENUE SERVICE.
3. FREEDOM VENTURES, UBO.
4. MONTGOMERY COUNTY TAX OFFICE.
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DATE: January 7, 2014 KENNETH MAGIDSON
United States Attorney
/s/ Joshua Smeltzer
Maryland Bar (no bar #) Admitted pursuant to 28 U.S.C. §517
717 N. Harwood, Suite 400
Dallas, Texas 75201 (214) 880-9735
(214) 880-9741 (FAX)
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U NITED STATES DISTRICT COURT for the
__________ District of __________
To: (Defendant’s name and address)
A lawsuit has been filed against you.
Within 21 days after service of this summons on you (not counting the day you received it) — or 60 days if you
are the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ. P. 12 (a)(2) or (3) — you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plaintiff’s attorney, whose name and address are:
If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court.
CLERK OF COURT
Southern District of Texas
John Parks Trowbridge, Jr. 25117 Ramrock Drive Porter, Texas 77365
Joshua D. Smeltzer U.S. Department of Justice 717 N. Harwood, Suite 400 Dallas, Texas 75201
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AO 440 (Rev. 06/12) Summons in a Civil Action (Page 2)
Civil Action No.
PROOF OF SERVICE
(This section should not be filed with the court unless required by Fed. R. Civ. P. 4 (l))
This summons for (name of individual and title, if any)
was received by me on (date) .
I personally served the summons on the individual at (place)
on (date) ; or
I left the summons at the individual’s residence or usual place of abode with (name)
, a person of suitable age and discretion who resides there,
on (date) , and mailed a copy to the individual’s last known address; or
I served the summons on (name of individual) , who is
designated by law to accept service of process on behalf of (name of organization)
on (date) ; or
Other (specify):
.
My fees are $ for travel and $ for services, for a total of $ .
I declare under penalty of perjury that this information is true.
Date: Server’s signature
Printed name and title
4:14-cv-0027
0.00
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__________ District of __________
CLERK OF COURT
John Parks Trowbridge, Jr., et al.
Freedom Ventures, UBO c/o John Parks Trowbridge, Jr., Trustee 25117 Ramrock Drive Porter, Texas 77365
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Civil Action No.
PROOF OF SERVICE
on (date) ; or
on (date) ; or
Other (specify):
.
4:14-cv-0027
0.00
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__________ District of __________
CLERK OF COURT
John Parks Trowbridge, Jr. et al
Montgomery County Tax Office 400 North San Jacinto Conroe, Texas 77301
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Civil Action No.
PROOF OF SERVICE
on (date) ; or
on (date) ; or
Other (specify):
.
4:14-cv-0027
0.00
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United States Of America §
§
Order for Conference
2. Counsel must appear for an initial pretrial conference on:
April 7, 2014, at 09:30 AM before Judge Lynn N. Hughes
at 515 Rusk Avenue, Room 11122 Houston, Texas.
3. Initial disclosures may not be delayed. Documents and other disclosures must be exchanged, reviewed, and discussed with opposing counsel well before the conference.
4. No interrogatories, requests for admission, or depositions may be donewithout court approval.
5. A joint discovery plan is not required. Counsel must (a) master the facts, (b) ascertain the discovery needed, (c) discuss it with each other, and (d) be prepared to discuss discovery in a conference so that the court may fashion a brief, effective management plan.
6. The court will schedule additional preparation and may rule on motions pending or made at the conference.
7. To ensure full notice, each party who receives this notice must confirm that every party knows of the setting.
8. Failure to comply with this order may result in sanctions, including dismissal, and prolonged tirades by the court.
Lynn N. Hughes United States District Judge
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Judge Lynn N. Hughes
Courtroom 11−C, Eleventh Floor Glenda Hassan, Case Manager United States Court House United States District Clerk 515 Rusk Avenue, Room 11122 Post Office Box 61010 Houston, Texas 77002−2605 Houston,Texas 77208−1010
(713) 250−5900 (713) 250−5516 [email protected]
Procedures. Suggestions for practice before Judge Hughes may be found at www.txs.uscourts.gov. Please read them.
Contact . Make case−related telephone inquiries to the case manager only. Counsel should alert the case manager to matters requiring prompt attention.
Information. Get information about filings, orders, or docket entries from the computer or from the clerk's office at (713) 250−5500 or (800) 745−4459.
Letters. Do not write letters. Put your message in a document with the case style.
Emergencies. Apply for immediate relief through the Intake Section of the Clerk's Office, 515 Rusk Avenue, Houston; (713) 250−5500.
Counsel should send a copy of emergency motions directly to the case manager so that they quickly reach the court's attention. In case of an emergency when the case manager cannot be reached, please call the judge's secretary, Kathy Grant, at (713) 250−5900.
Continuances. Joint motions for continuance do not bind the court. The court will respect
counsel's vacations.
Discovery Problems. The court will hear oral motions that affect discovery or scheduling as soon as both counsel can appear in person or by telephone.
8/20/2019 2a Houston Division Record
HOUSTON DIVISION
CERTIFICATE OF INTERESTED PERSONS
I, Lori Gruver, counsel for Montgomery County Tax Office, who collects for itself and
the following taxing jurisdictions, Montgomery County Hospital District, New Caney
Independent School District, Montgomery County Emergency Services District No. 6, and Lone
Star College, do hereby certify, that other than the Plaintiff and the named known Defendant(s),
Montgomery County Municipal Utilities District 83 may have a financial interest in the outcome
of this case.
Respectfully Submitted,
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State Bar No. 24007283
Southern Admission No. 22963
BLAIR & SAMPSON, LLP
P.O. Box 17428
Austin, Texas 78760
(512) 447-6675 (Telephone)
(512) 693-0728 (Facsimile)
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing has been filed electronically
and is to be served by electronic transmission to all parties on the court’s electronic mailing
matrix on February 4, 2013.
/s/ Lori Gruver_____________________
LORI GRUVER
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HOUSTON DIVISION
ORIGINAL ANSWER OF MONTGOMERY COUNTY TAX OFFICE
TO THE HONORABLE JUDGE OF SAID COURT:
NOW COMES, Montgomery County Tax Office (“Taxing Authorities”), and files its
Original Answer to United States of America’s Complaint (“Complaint”) and would respectfully
show the Court the following:
1. Taxing Authorities admit the Court has jurisdiction over this matter as alleged in
paragraph 1 of the Complaint.
2. Taxing Authorities admit the allegations in paragraph 2 of the Complaint.
4. Taxing Authorities are without the requisite knowledge to admit or deny the allegations in
paragraph 4 of the complaint, therefore they are denied.
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2
COUNT 1 (Judgment for Outstanding Tax Liabilities)
paragraph 7 and 8, as set forth by the United States and incorporated into paragraph 10, of the
complaint, therefore they are denied. Taxing Authorities admit the allegations in paragraph 9, as
set forth by the United States and incorporated into paragraph 10 of the Complaint.
COUNT II (Foreclosure of Tax Liens)
paragraphs 7 and 8, as set forth by the United States and incorporated into paragraph 12, of the
complaint, therefore they are denied. Taxing Authorities admit the allegations in paragraph 9, as
set forth by the United States and incorporated into paragraph 12 of the Complaint. Taxing
Authorities are not required to admit or deny the allegations in paragraph 11, as set forth by the
United States and incorporated into paragraph 12 of the Complaint and therefore is denied.
13.
Taxing Authorities are without the requisite knowledge to admit or deny the allegations in
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3
paragraph 15 of the Complaint, therefore they are denied.
16. Taxing Authorities are without the requisite knowledge to admit or deny the allegations
in paragraph 16 of the Complaint, therefore they are denied.
18. Taxing Authorities deny the allegations in paragraph 18 of the Complaint.
WHEREFORE, PREMISES CONSIDERED, Taxing Authorities pray that the Court
a.
recognize the continued existence of and validity of the tax liens securing payment
of the taxes, penalties and interest assessed by Taxing Authorities on the subject
property;
b. order that taxes, penalties and interest owing to the Taxing Authorities be paid
from the proceeds of the sale after the expenses of preservation of the sale and
prior to distribution to any other claimant; and
c. for all further relief to which Taxing Authorities may be entitled.
Respectfully Submitted,
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Southern Admission No. 22963
BLAIR & SAMPSON, LLP
P.O. Box 17428
Austin, Texas 78760
(512) 447-6675 (Telephone)
(512) 693-0728 (Facsimile)
I hereby certify that a true and correct copy of the foregoing has been filed electronically
and is to be served by electronic transmission to all parties on the court’s electronic mailing
matrix on February 4, 2014
/s/ Lori Gruver_____________________
LORI GRUVER
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SOUTHERN DISTRICT OF TEXAS
v. § § CIVIL NO. 4:14-cv-0027
JOHN PARKS TROWBRIDGE, JR., § FREEDOM VENTURES, UBO, and § MONTGOMERY COUNTY TAX OFFICE, §
§ Defendants. §
UNITED STATES’ REQUEST FOR ENTRY OF DEFAULT
Plaintiff, United States of America, pursuant to Rule 55(b) of the Federal Rules of
Civil Procedure, requests that the Court enter a default against defendant, Freedom
Ventures, UBO, and in support of its request states as follows:
1. The complaint initiating this action was filed on January 7, 2014. (Dkt.
#1.) Freedom Ventures, UBO, was named as a party that may claim an interest in the
property at issue. See 26 U.S.C. §7403(b).
2. On January 15, 2014, the summons was served on John Parks Trowbridge,
Jr., as Trustee of Freedom Ventures, UBO. (Dkt. #6.)
3. On February 13, 2014, John Parks Trowbridge, Jr., filed a purported
“Conditional Acceptance and Demand for Proof or Withdrawal of Claims.” (Dkt. #12.)
The Court has construed this as an answer by John Parks Trowbridge, Jr. individually.
(Dkt. #13.)
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U.S. Motion Requesting Default Page 2 of 4
4. No filings have been made on behalf of Freedom Ventures, UBO. The
response filed by John Parks Trowbridge, Jr., is improper as a response by Freedom
Ventures, UBO because John Parks Trowbridge, Jr. is not an attorney1 and can represent
himself pro-se, but cannot represent an entity. See 28 U.S.C. § 1654; Rowland v. California
Men’s Colony, 506 U.S. 194, 202, 113 S.Ct. 716, 721 (1993) (“[T]he lower courts have
uniformly held that 28 U.S.C. § 1654 … does not allow corporations, partnerships, or
associations to appear in federal court otherwise than through a licensed attorney.”
“[T]he rationale for that rule applies equally to all artificial entities.”). To the extent Mr.
Trowbridge was attempting to respond for Freedom Ventures, UBO that pleading is
prohibited. Id.
5. The time to file an answer or otherwise respond to the United States’
complaint expired on February 5, 2014, and no response was filed by Freedom
Ventures, UBO claiming any interest in the property at issue. (Dkt. #6.) Therefore,
Freedom Ventures, UBO has failed to plead or otherwise defend any claim or interest it
may have in the property at issue as required by Federal Rules of Civil Procedure
12(a)(1)(A) and 12(b) and an entry of default judgment is appropriate.
WHEREFORE, Plaintiff, the United States of America, requests that the Court
enter default judgment against Defendant Freedom Ventures, UBO. The United States
also requests such further and other relief to which it may be justly entitled.
1 John Parks Trowbridge does not allege he is an attorney, nor does he list any State bar affiliation in his response. (See Dkt. #12.) Counsel for the United States has searched for “John Trowbridge” on the website for the Texas State Bar and did not find any listing under that name.
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DATE: March 12, 2014 KENNETH MAGIDSON United States Attorney
/s/ Joshua Smeltzer
JOSHUA SMELTER Attorney-in-charge for defendant Department of Justice, Tax Division Maryland Bar (no bar #) Admitted pursuant to 28 U.S.C. §517 717 N. Harwood, Suite 400 Dallas, Texas 75201 (214) 880-9735 (214) 880-9741 (FAX) [email protected]
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I certify that on March 12, 2014, the foregoing UNITED STATES’ REQUEST
FOR ENTRY OF DEFAULT JUDGMENT, with accompanying proposed default
judgment, was served via ECF Filing and/or United States Mail, postage pre-paid, as
follows:
John Parks Trowbridge, Jr. 25117 Ramrock Dr. Porter, TX 77365
John Parks Trowbridge, Jr., Trustee
Freedom Ventures, UBO 25117 Ramrock Dr. Porter, TX 77365
Lori Gruver Linebarger Goggan, et al. PO Box 17428, Suite 400 Austin, TX 78760
/s/ Joshua D. Smeltzer JOSHUA D. SMELTZER
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808887.1
HOUSTON DIVISION
Plaintiff, § v. §
§
DEFAULT JUDGMENT
The Court, having considered the UNITED STATES’ REQUEST FOR ENTRY OF DEFAULT JUDGMENT, and any response or reply thereto, it is hereby ADJUDGED that:
1. The United States’ motion is GRANTED; and
2. Freedom Ventures, UBO is HEREBY in DEFAULT for failing to plead or
otherwise defend against the United States Complaint and has failed to assert anyinterest in the property at issue.
SIGNED this ________ day of _____________________________ , 2014.
________________________________
UNITED STATES DISTRICT JUDGE
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HOUSTON DIVISION
v. § § CIVIL NO. 4:14-cv-0027
JOHN PARKS TROWBRIDGE, JR., § FREEDOM VENTURES, UBO, and § MONTGOMERY COUNTY TAX OFFICE, §
§ Defendants. §
UNITED STATES’ MOTION FOR SUMMARY JUDGMENTAND MEMORANDUM IN SUPPORT
Pursuant to Fed. R. Civ. P. 56, plaintiff United States of America moves for
summary judgment against defendant, John Parks Trowbridge, Jr. (“Trowbridge”.)
Based on the undisputed material facts, the United States is entitled to judgment as a
matter of law and foreclosure of its liens against property subject to the liens.
INTRODUCTION
After years of using frivolous arguments to stall, delay, and evade collection,
Trowbridge’s tax debt has reached $3,326,015, plus statutory additions. The time has
come for Trowbridge to pay what he owes. The United States Tax Court has already
ruled on the deficiencies owed by Trowbridge for the tax years at issue and certified
transcripts of account indicating the current amounts owed are attached to this motion.
The United States seeks judgment for amounts owed and to foreclose its tax liens
against property held by Trowbridge and subject to the federal tax liens.
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STATEMENT OF MATERIAL FACTS
Defendant, John Parks Trowbridge, Jr., owes the United States the following
amounts of unpaid federal income taxes, penalties, and interest:1
Type of Tax Tax Period Assessment Date Amount Due Through
(April 7, 2014) 1040 1993 1/20/2004 $357,940.55 1040 1994 1/20/2004 $491,487.70 1040 1995 1/20/2004 $490,011.48 1040 1996 1/16/2004 $1,319,436.18 1040 1997 1/16/2004 $667,139.10
TOTAL: $3,326,015.01
Assessments were made following adjudication of the tax deficiencies against
Trowbridge by the U.S. Tax Court.2 Defendant, John Parks Trowbridge, Jr., was given
notice and demand was made for payment of the unpaid taxes on or about the
assessment dates listed above. As of April 7, 2014, defendant, John Parks Trowbridge,
Jr., owes the United States $3,326,015 for federal income taxes, penalties, and interest
accrued for the 1993, 1994, 1995, 1996, and 1997 tax years. Defendant, John Parks
Trowbridge, Jr., further owes all interest and statutory additions that accrue from
April 7, 2014, until his tax liabilities are paid.
On April 25, 2005, David Powers Homes S.T. LTD transferred by warranty deed
the real property located at 25117 Ramrock Drive, Porter, Texas (“Porter property”) to
1 Attached as Government Exhibit B-1, B-2, B-3, B-4, and B-5 are the certified transcripts of account for the 1993,1994, 1995, 1996, and 1997 tax years. 2 Copies of the Tax Court Memorandum Opinions finding deficiencies for the tax years 1993, 1994, 1996, and 1997 are attached as Government Exhibits C-1 and C-2.
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defendant, John Parks Trowbridge, Jr., said property being more specifically described
as follows: 3
Lot Sixteen (16), Block One (1), of Bentwood, Section One (1),
a Subdivision of 156.8 Acres of Land, Out of the William Massey Survey, A-391, and the Mary Owens Survey, A-405, in Montgomery County, Texas, as Imposed by the Map and Dedication Records in Cabinet G, Sheets 138A through 141A of the Map Records of Montgomery County, Texas.
On or about May 2, 2005, the warranty deed was recorded and, on that same
date, a deed of trust in the amount of $299,768 with DPH Mortgage, Ltd., was
recorded.4
The United States recorded notices of its tax lien securing the above liabilities in
the real property records of Montgomery County, Texas, on or about July 7, 2011, and
October 2, 2012, for the tax periods listed above.5
On or about October 25, 2012, a Real Property Bill of Exchange Contract and
Agreement between defendants, John Parks Trowbridge, Jr., and Freedom Ventures,
UBO, was filed with the Montgomery County Clerk’s Office.6 The contract purported
to transfer the Porter Property from defendant, John Parks Trowbridge, Jr., to
defendant, Freedom Ventures, UBO; however, the transfer was done after the tax
assessments were made and after the notices of federal tax liens were filed.7
3 A true and correct copy of the Warranty Deed and Deed of Trust are attached as Government Exhibit D. 4 Gov. Ex. D. 5 Copies of the Notices of Federal Tax Lien are attached as Government Ex. A. 6 A true and correct copy of the Real Property Bill of Exchange Contract and Agreement is attached as Government Exhibit E. 7 Compare Gov. Ex. A (Notice of Federal Tax Liens) with Gov. Ex. E (Bill of Exchange Contract and Agreement).
14-20333.116
ARGUMENT
I.
JOHN PARKS TROWBRIDGE , JR. IS CURRENTLY INDEBTED TO THE UNITED STATES FOR OUTSTANDING INCOME TAX LIABILITIES
An assessment of tax by the Internal Revenue Service (“Service”) is
presumptively correct.8 John Parks Trowbridge, Jr., was assessed for unpaid income tax
liabilities for the income tax years and is indebted to the United States in the amount of
$3,326,015, for the 1993 and 1997 income tax years, plus statutory additions accruing
from until paid. If tax liabilities are not paid on or before the statutory date for
payment9 then interest accrues on the underpayment from the due date until paid.10
Similarly, interest accrues with respect to assessed, but unpaid, penalties, additional
amounts, or additions to tax.11
The tax deficiencies were also adjudicated by the Tax Court in a prior
proceeding. Trowbridge’s tax deficiencies for the 1991, 1992, 1993, 1994, and 1995 tax
years were adjudicated by the Tax Court and he was found liable for those tax
amounts.12 This decision also included liability for certain additions and a $25,000
sanction penalty because the Tax Court found that “[i]t is clear to us that Dr.
8 E.g., Affiliated Foods, Inc. v. Commissioner , 154 F.3d 527, 530 (5th Cir. 1998). 9 Penalties, additional amounts, or additions to tax are treated as taxes and are, therefore, also entitled to the presumption of correctness. See 26 U.S.C. §6665(a)(2); Affiliated Foods, 154 F.3d at 530. 10 26 U.S.C. §6601(a); See Bob Hamric Chevrolet, Inc. v. USA, Internal Revenue Service, 849 F. Supp. 500, 515 (W.D. Tex. 1994). 11 26 U.S.C. §6601(e)(2). 12 See Gov. Ex. C-1 at 3, 16.
14-20333.117
U.S. Motion for Summary Judgment Page 5 of 8
Trowbridge took the lead in the sanctionable activity here.”13 A similar decision was
entered by the Tax Court for the 1996 and 1997 tax years.14
Therefore, the United States is entitled, as a matter of law, to judgment against
John Parks Trowbridge, Jr., in the amount of $3,326,015, plus statutory additions
accruing from April 7, 2014, until paid.
II.
THE FEDERAL TAX LIENS AGAINST JOHN PARKS TROWBRIDGE , JR., SHOULD BE
FORECLOSED AGAINST INTEREST IN REAL PROPERTY
Plaintiff, United States of America, has valid and subsisting federal tax liens on
all property and rights to property belonging to the defendant, John Parks Trowbridge,
Jr., including his interest in the Porter Property. Pursuant to 26 U.S.C. §6321, a lien in
favor of the United States arises upon all property and rights to property, then owned
or acquired thereafter, when a person neglects or refuses to pay tax liabilities owed.15
The liens arose as of the dates of the assessments of the tax liabilities.16 The amounts
owed, as discussed above, were previously adjudicated by the Tax Court.17
On April 25, 2005, Trowbridge purchased real property located at 25117 Ramrock
Drive, Porter, Texas (“Porter property”) from David Powers Homes S.T. LTD and on or
about May 2, 2005, the warranty deed and deed of trust were recorded.18 Upon
13 Gov. Ex. C-1 at 27. 14 See Gov. Ex. C-2 at 3, 15, 27-28. 15 26 U.S.C. §6321. 16 26 U.S.C. §6322. 17 See Gov. Exs. C-1, C-2. 18 Gov. Ex. D.
14-20333.118
U.S. Motion for Summary Judgment Page 6 of 8
assessment, the federal tax liens attached to the Porter Property.19 The United States
then recorded its notices of liens on or about July 7, 2011, and October 2, 2012.20 By the
time Trowbridge attempted to transfer the Porter Property to a self-controlled trust (i.e.
Freedom Ventures UBO) on October 25, 2012,21 the tax liens are already attached to that
property.22 Any transfer to the trust, regardless of validity, was done subject to the tax
liens already attached and recorded.23
The Montgomery County Tax Office has filed a claim for any outstanding ad
valorem taxes owed on the property, which are listed as “[t]o be determined.”24 To the
extent that ad valorem taxes are owed, the United States admits that they have priority
over the federal tax liens pursuant to 26 U.S.C. §6323(b)(6).
Pursuant to 26 U.S.C. §7403, the United States may enforce its tax liens by
foreclosing upon and selling the Porter Property and the Court may order the
foreclosure and sale of the property to satisfy the outstanding tax liabilities.25 Therefore,
the federal tax liens against Trowbridge should be foreclosed against the Porter
Property and the property should be sold.
19
See 26 U.S.C. §§ 6321, 6322.20 Gov. Ex. A. 21 Gov. Ex. E. 22 Gov. Ex. A. 23 See United States v. Cache Valley, 866 F.2d 1242, 1245 (10th Cir. 1989) (citing United States v. Bess, 357 U.S. 51, 57 (1958) for the proposition that a transfer “does not affect the lien because no matter into whose hands the property goes, the property passes cum onere, or with the lien attached.”) 24 (Dkt. #10.) 25 See 26 U.S.C. §7403.
14-20333.119
CONCLUSION
For the foregoing reasons, and based on the undisputed material facts, the
United States is entitled to a judgment against Trowbridge for $3,326,015, plus statutory
additions after April 7, 2014. The United States has valid and subsisting liens against
the Porter Property and that property should be foreclosed and sold.
DATE: April 4, 2014 KENNETH MAGIDSON United States Attorney
/s/ Joshua D. Smeltzer JOSHUA D. SMELTZER Attorney-in-Charge State Bar (Maryland) Trial Attorney, Tax Division U.S. Department of Justice 717 N. Harwood, Suite 400 Dallas, Texas 75201 (214) 880-9735 (214) 880-9741 (Fax) [email protected]
14-20333.120
I certify that on April 4, 2014, the foregoing UNITED STATES’ MOTION FOR
SUMMARY JUDGMENT AND MEMORANDUM IN SUPPORT, with accompanying
proposed order, was served via ECF Filing and/or United States Mail, postage pre-
paid, as follows:
John Parks Trowbridge, Jr. 25117 Ramrock Dr. Porter, TX 77365
John Parks Trowbridge, Jr., Trustee
Freedom Ventures, UBO 25117 Ramrock Dr. Porter, TX 77365
Lori Gruver Linebarger Goggan, et al. PO Box 17428, Suite 400 Austin, TX 78760
/s/ Joshua D. Smeltzer JOSHUA D. SMELTZER
14-20333.121

14-20333.123
14-20333.124
14-20333.125
14-20333.126
14-20333.127
14-20333.128
14-20333.129
25 March 2014 Date:
CERTIFICATE OF OFFICIAL RECORD
I certify that the annexed
transcrpt of the axpayer named therein respct to th taxes spce, s a true an correct trascript for the perod statd of all assessents penaltes nterest abatements crdts refuns an avance or unente payments relatng thereto as sclose by the recors of ths ofce as of the date of ths certcaton. t consts of 3 pages
under the custody of ths ofce.
Catalog Numbr 1900E
IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of ths offce to be axed on the day and year frst above wrtten
By drecton of the Secretary of the Treasury
Wllam W Legare Insolvecy Manager Small Buness/Self-Employed Dvson Gulf States Area Oklahoa Cty Olahoa
Form 2866 (Rev. 09-1997)

14-20333.131
Aout Transript 3513 1040A De 31, 1993 TROW
n/ 18210-070-00172-5
Addtonl ccont cton pendng
Exmnton of tx retrn
Pyment wth retrn
Dplcte retrn fled
n/ 18211-340-93001-6
11-15-2000
Addtonl tx ssessed by exmnton
n/ 18247-426-10016-1
520
960
961
960
300
Bnkrptcy or other legl cton fled
Apponted representtve
Removed pponted representtve
Apponted representtve
Addtonl tx ssessed by exmnton
n/ 49247-426-70009-4
421
521
300
Closed exmnton of tx retrn
Removed bnkrptcy or other legl cton
Addtonl tx ssessed by exmnton - qck
ssessment
160
170
190
971
971
530
537
961
971
971
582
971
Penlty for flng tx retrn fter the de dte
Penlty for not pre-pyng tx
Interest chrged for lte pyment
Tx perod blocked from tomted levy progrm
Pendng nstllment greement
Blnce de ccont crrently not collectble
Accont crrently consdered collectble
Remoed pponted representtve
Collecton de process Notce of Intent to Levy
ssed
Collecton de process Notce of Intent to Levy -
retrn recept sgned
Len plced on ssets de to blnce owed
Issed notce of len flng nd rght to Collecton De Process herng
04-10-1995
03-31-1995
12-03-1996
12-03-1996
08-11-1999
276
582
971
CP 071D
Penlty for lte pyment of tx 20124105 10-22-2012
Len plced on ssets de to blnce owed 02-22-2013
Issed notce of len flng nd rght to Collecton De 02-26-2013
Process herng
Page 2
$0. 00
$0. 00
-$1,000. 00
$0. 00
$0. 00
$0. 00
$0. 00
3/25/2
14-20333.132
Accout Tnscipt 3513 14A Dec 31 1993 TROW Pge 3
670 Payment 0529203 $8. 70
evy
582 ien placed on aet due to balance owed 0607203 $0.00
670 Payment 062203 $862. 38
evy
670 Payment 0723203 $6756. 70 evy
520 Bankruptcy or oter legal action filed 0808203 $0.00
670 Payment 0823203 $2525. 62
evy
520 Bankruptcy or oter legal action filed 26203 $0. 00
582 ien placed on aet due to balance owed 220203 $0.00
httpseupepsis.govesvtdsequestsTdsPoductActiondo?method=poductDetils 3252
14-20333.133
m uy l vu vc
5 March 2014 Date:
CERFCAE OF OFFCAL RECOR
I certify that the annexed transcript o the taxpayer named therein in respect to the tes specied, is a tre and correct transcript for the perio state of all assessments penalties interest abatements redits rends and advance or nidentied payments relating thereto as disclosed by the records o this oce as o the date o this ceication It consists o 3 pages
under the custody of this ofice
Catalog Number 900E
IN WITNESS WHEREOF I have hereunto set my hand, and caused the seal of this ofice to be afixed on the day and year first above written.
By direction of the Secretary of the Treasury
William W. Legare nsolvency Manager Small Busness/Sel-Employed Division Gulf States Area Olahoma City Oklahoa
Form 2866 (Rev. 09-1997)

Accont Tanscipt 3513 1040 Dec. 31, 1994 TROW Page 1
Iteal Revenue Seice United States Depent of the Treas
hs
AXAYER IDENIFICAION NUMBER: 313
OUE AXAYER IDENIFICAION NUMBER: 833
JOHN ROWBRIDGE
ACCOUN BALANCE:
297,121 30
194,366 40
000
491,487 70
**
AXABLE INCOME:
OAL ELF EMLOYMEN AX:
01
280,628 00
23,01 00
REURN DUE DAE OR REURN RECEIVED DAE (WHICHEVER I LAER
ROCEING DAE
Jan 21, 1997
Ma 24, 1997
https://eup.epsisgov/esv/tds/equests/TdsPoductActiondo?method=poductDetis 3/25/2
14-20333.135
150 Tax rur fld
/a 18211022931157
610
176
166
276
196
420
582
670
470
472
Paly for o pr-pay ax
Paly for fl ax rur afr h du da
Paly for la pay of ax
Irs hard for la pay
Exaao of ax rur
L plad o asss du o bala owd
Pay
Cla pd
Rvrsd la prossd rror
Rdud or rovd paly for la pay of ax Rdud or rovd paly for o pr-pay ax
Rdud or rovd paly for fl ax rur afr
h du da
197
290
Rdud or rovd rs hard for la pay
Addoal ax assssd
/a 18254651058528
420
560
300
1152000
Addoal ax assssd by xaao
/a 18247426100171
520
960
961
960
300
Bakrupy or ohr lal ao fld
Appod rprsav
Rovd appod rprsav
Appod rprsav
Addoal ax assssd by xaao
/a 49247426700104
42
521
300
Closd xaao of ax rur
Rovd bakrupy or ohr lal ao
Addoal ax assssd by xaao - quk
assss
160
170
Paly for fl ax rur afr h du da
Paly for o pr-pay ax
19971108 03241997
03241997
09211998
09211998
/25/2
14-20333.136
90 Interest carged or late payment
9 Tax period locked rom atomated levy program
9 Pending installment agreement
50 alance de accont crrently not collectale
5 Accont crrently considered collectale
96 Removed appointed representative
9 Collection de process otice o Intent to evy
issed
9 Collection de process otice o Intent to evy -
retrn recept signed
582 ien placed on assets de to alance owed
9 otice issed CP 0D
9 Issed notice o lien iling and rigt to Collection De Process earing
9 Issed notice o lien iling and rigt to Collection De Process earing
9 Collection de process reqest received timely
9 Collection de process eqivalent earing) reqest
received
520 ankrptcy or oter legal action iled
9 Collecton de process eqivalent earing) resolved y
appeals - decision letter issed or yo witdrew te earing reqest
520 ankrptcy or oter legal action iled
Tis Prodct Contains Sensitive
20040608 0202004
Page 3
322
14-20333.137
m uy l vu vc
25 March 2014 Date
CERIFICAE OF OFFICIAL RECOR
I certiy that the annexed
transcrpt of the taxpayer name theren n respect to the taxes spece s a true an correct transcrpt for the pero state of all assessents, penaltes, interest abtements, crets, refuns an avance or nente payments relatng thereto as sclosed by the recors of ths oce as of the ate of ths cercaton It conssts of 3 pages
under the custody o this ofice
Catalog Number 1900E
IN WITNESS WHEREOF I have hereunto set my hand, and caused the seal o this ofice to be afixed on the day and year irst above written.
By direction o the Secretary o the Treasury:
Wlla W. Legare nsolvency Manager Small Busness/Self-Employe Dvson Gulf States Area Oklahoa Cty Oklahoma
Form 2866 (Rev. 09-1997)

Accont Transcript 3513 1040 Dec 31 1995 TROW age 1
Iteal Revenue Seice United States Dep ent of the Treas
Account Transcript Request ate:
TAXAYER IENTIFICATION NUMBER: 3513
SOUSE TAXAYER IENTIFICATION NUMBER: 8335
JOHN TROWBRIGE
--- ANY MINUS SIGN SHOWN BELOW SIGNIFIES A CREIT AMOUNT
ACCOUNT BALANCE:
ACCRUE INTEREST:
ACCRUE ENALTY:
296279 37
193732 11
EXEMTIONS:
FILING STATUS:
1
38789
24232
RETURN UE ATE OR RETURN RECEIVE ATE WH ICHEVER IS LATER)
ROCESSING ATE
Ja 27 1997
Mar 17 1997
https :IIeupeps.irs govIesrvltdslrequestsTdsroductAction.do ?method=productDetais 325/2
14-20333.139
150 Tax return filed
610
166
276
196
420
582
360
470
472
470
161
271
291
Penalt for late pament of tax
nterest harged for late pament
Examination of tax return
Lien plaed on assets due to balane owed
ees and other expenses for olletion
Claim pending
Claim pending
Redued or removed penalt for filing tax return after
te due date
Redued or removed penalt for late pament of tax
Prior tax abated
197
846
776
841
777
420
560
300
Redued or removed interest harged for late pament
Refund issued
Refund anelled
Redued or removed interest redited to our aount
Examination of tax return
11152000
520
960
961
960
300
Appointed representative
421
521
300
Removed bankrupt or other legal ation
Additional tax assessed b examination quik
assessment
160
170
Penalt for not prepaing tax
19971008 03171997
20040608 01202004
20040608 01202004
20040608 01202004
http//eupepirgovIerv /td/requet/TdProductctiondo ?method=productDetai
Page 2
$133,977. 00
$1,000. 00
$30,144. 83
$8,028. 62
$13,761. 63
$0. 00
$0. 00
$44. 00
$0. 00
$0. 00
$0. 00
$30,144. 83
$8,028. 62
$133,977. 00
$13,761. 63
$1,113. 90
$157. 90
$1,113. 90
$157. 90
$0. 00
$0. 00
$000
$0. 00
$0. 00
3/25/2
14-20333.140
190 Interet charged for late payment
971 Tax perod locked from automated levy program
971 Pendng ntallment agreement
977 Amended return fled
n/a 49277476019464
530 Balance due account currently not collectale
290 Addtonal tax aeed
n/a 83254596050034
961 Removed apponted repreentatve
971 Notce ued CP 071A
531 Account currently condered collectale
971 Notce ued CP 071A
971 Collecton due proce Notce of Intent to Levy
ued
582 Len placed on aet due to alance owed
360 ee and other expene for collecton
971 Collecton due proce Notce of Intent to Levy -
return recept gned
971 Iued notce of len flng and rght to Collecton Due
Proce hearng
470 Clam pendng
971 Iued notce of len flng and rght to Collecton Due
Proce hearng
971 Collecton due proce equvalent hearng requet
receved
520 Bankruptcy or other legal acton fled
971 Collecton due proce equvalent (hearng) reolved y
appeal decon letter ued or you wthdrew the hearng requet
470 Clam pendng
520 Bankruptcy or other legal acton fled
20040608 01202004
Page
$126,747 37
$0 00
$0 00
$0 00
$0 00
$0 00
$000
$0 00
$0 00
$0 00
$0 00
$0 00
$64 00
$0 00
$0 00
$0 00
$000
$20 00
$0 00
$0 00
$0 00
$42 00
$0 00
$0 00
$0 00
$0 00
$0 00
252
14-20333.141
25 March 2014 Date:
CERTIFICATE OF OFFICIAL RECORD
I certify that the annexed:
transcrpt o the taxpayer amed theren n respect to the taes speced, s a true and correct transcrpt or the perod stated, o all assessments, penaltes, interest, abatements, credts, rends, and advance or ndentfed payments relatig thereto as dsclosed by the records o this ofce as o the date o this certicaton It conssts o 3 pages
under the custody of this ofice.
Catalog Number 900E
N WTNESS WHEREOF have hereunto set my hand and caused the seal of this office to be aixed, on the day and year first above written
By direction of the Secretary of the Treasury
Wllam W. Legare, nsolvency Manager Small Bsness/Sel-Employed Dvson, Gl States Area Oklahoma Cy, Oklahoma
Form 2866 (Rev. 09-1997)

14-20333.143
Aont Transript 3513 1040 De 31 1996 TROW
150 Tx return filed
n/ 18211-293-0802-
460 Extenion of time to file ext Dte 08-15-199
460 Extenion of time to file ext Dte 10-15-199
610 Pyment with return
16 Penlty for not prepying tx
26 Penlty for lte pyment of tx
196 Interet chrged for lte pyment
290 Denied either clim mde on orm 843 or requet for
removl of penlty
n/ 18254-455-98000-8
42 Revered clim proceed in error
11 Reduced or removed penlty for not prepying tx
21 Reduced or removed penlty for lte pyment of tx
291 Prior tx bted
n/ 18254-52-05459-8
19 Reduced or removed interet chrged for lte pyment
846 Refund iued
841 Refund cncelled
420 Exmintion of tx return
60 Pyment
9 Amended return filed
n/ 182-442-00844-0
300 Additionl tx eed by exmintion
n/ 1824-432-10052-1
960 Appointed repreenttive
961 Removed ppointed repreenttive
960 Appoited repreenttive
300 Additionl tx eed by exmintion
n/ 4924-420-0016-4
421 Cloed exmintion of tx return
521 Removed bnkruptcy or other legl ction
1995008 12-22-199
Page 2
$36,851. 00
$0. 00
3252
14-20333.144
Aont Trnscrit 3513 1040 Dec. 31, 1996 TROW
300 Additional tax assessed by examination quick
assessment
na 49251-01-1300-4
10 enalty for filing tax return after the due date
170 enalty for not prepaying tax
190 Interest charged for late payment
971 Tax period blocked from automated levy program
971 ending installment agreement
537 Account currently considered collectable
91 Removed appointed representative
971 Collection due process Notice of issued
971 Collection due process Notice of return receipt signed
Intent to
Intent to
30 Fees and other expenses for collection
Levy
Levy
971 Issued notice of lien filing and right to Collection Due
rocess hearing
582 Lien placed on assets due to balance owed
971 Issued notice of lien filing and right to Collection Due rocess hearing
520 Bankruptcy or other legal action filed
520 Bankruptcy or other legal action filed
30 Fees and other expenses for collection
This roduct Contains Sensitive
2004008 01-1-2004
2004008 01-1-2004
2004008 01-1-2004
2004008 01-1-2004
Pge 3
3/25/2
14-20333.145
14-20333.147
150 Tax rern filed qick aemen
n/a 76251-022-13000-9
460 Exenion of ime o file ex Dae 08-15-1998
610 Paymen wih rern
163 Penaly for filing ax rern afer he de dae
270 Penaly for lae paymen of ax
190 Inere charged for lae paymen
470 Claim pending
161 Redced or removed penaly for filing ax rern afer he de dae
271 Redced or removed pealy for lae paymen of ax
291 Prior ax aaed
n/a 18254483-06922-9
197 Redced or removed inere charged for lae paymen
420 Examinaion of ax rern
560 IRS can ae ax nil 10-22-2001
670 Paymen
977 Amended rern filed
n/a 18277-442-00821-0
300 Addiional ax aeed y examinaion
n/a 18247-432-10051-1
520 Bankrpcy or oher legal acion filed
960 Appoined repreenaive
961 Removed appoined repreenaive
960 Appoined repreenaive
300 Addiional ax aeed y examinaion
n/a 49247-420-70017-4
421 Cloed examinaion of ax rern
521 Removed ankrpcy or oher legal acion
300 Addiional ax aeed y examinaion - qick aemen
n/a 49251-016-13601-4
160
170
190
971
971
Penaly for filing ax rern afer he de dae
Penaly for no prepaying ax
Inere charged for lae paymen
Tax period locked from aomaed levy program
Pending inallmen agreemen
03-29-2004
03-04-2004
hps://eupepsirsgov/esrv/ds/requess/TdsProducAciondo?ehodproducDeais
Page 2
$44,763. 00
$0. 00
-$100. 00
$6,029. 50
$1,563. 21
$1,989. 52
$0. 00
-$6,029. 50
-$1,563. 21
-$44,763. 00
-$1,989. 52
$0. 00
$0. 00
-$100. 00
$0. 00
$0. 00
$0. 00
$0. 00
$0. 00
$0. 00
$0. 00
$0. 00
$0. 00
$0. 00
$211,508. 00
$52,887. 00
$11,316. 00
$127,621. 59
$0. 00
$0. 00
3/25/
14-20333.148
Aount Transcrpt 3513 1040 Dec. 31, 1997 TROW Page 3
53 Bln du ount urrntly not oltbl 61724 $
961 Rovd ppontd rprsnttv 111221 $
971 Not ssud 11211 $ C 71A
531 Aount urrntly onsdrd olltbl 96212 $
971 Not ssud 18212 $ C 71A
971 Collton du pross Not of Intnt to Lvy -- 924212 $ ssud
582 Ln pld on ssts du to bln owd 928212 $
971 Collton du pross Not of Intnt to Lvy -- 927212 $
rturn rpt snd
971 Issud not of ln fln nd rht to Collton Du 14212 $
ross hrn
971 Issud not of ln fln nd rht to Colton Du 226213 $ ross hrn
971 Collton du pross quvlnt (hrn) rqust 514213 $ rvd
52 Bnkrupty or othr ll ton fld 88213 $
971 Collton du pross quvlnt (hrn) rsolvd by 822213 $
ppls dson lttr ssud or you wthdrw th hrn rqust
52 Bnkrupty or othr ll ton fld 1216213 $
https :IIeupepsrs.govIesrvltdslrequestsTdsProdctActondo ?method=productDetas 325
14-20333.149
COURT
JOHN
PARKS
TROWBRIDGE, Pe t i t i o n e r y .
COMMISSIONER
OF
L.
TROWBRIDGE, Pe t i t i o n e r y.
COMMISSIONER OF INTERNAL REVENUE Respondent
Docket
Nos.
2003.
R determined
d ef i c i en c i e s in t ax with re spec t to
Ps H and
W for the
years 1991-95, as
those
pe t i t i ons
for
appear
moved for defau l t judgment with
re spec t to
the d ef i c i en c i e s in tax
determined
agains t
on
the i s sues of 1) the addi t ions to t ax
determined
determined
and
1995.

1. Held: R s motion for defau l t judgment
i s
by
Ps
do
not
v a l id
fo r the addi t ions
to tax
a t
4.
Held, fu r ther , Ha nd Wa r e l i ab l e for
penal t i es under sec.
6673, I .R.C. , in
for
respondent .
HALPERN, Judge:
These cases
have been
for
purposes of t r i a l , b r i e f in g ,
and
October
11,
2000
( the
def ic iency) ,
respondent determined def ic ienc ies in , and addi t ions to , each
p e t i t i o n e r s Federa l income
taxes
130,699 32,595 7,068
14-20333.151
1
t h a t
p e t i t i o n e r s
be held in d efau l t
with re spec t to the d ef i c i en c i e s
in tax
fo r a l l years
and
in
1992, and 1993.
has moved for p a r t i a l
summary
judgment
to the
for 1994
Respondent
has
each
p e t i t i o n e r
under
fol low, we
sha l l gran t r e sponden t s motions
fo r d efau l t judgment, su s t a in
(with
the
summary
judgment,
and
under
6673(a)
(1) .
Unless otherwise i nd ica ted , a l l sec t ion re fe rences
are
to
the
In t e rn a l
Revenue Code in e f f e c t for the years a t
i s sue ,
to
and
During
marr ied to
her
as
Ms.
t h i s
repor t .
14-20333.152
amounts a re
FINDINGS OF F CT
Facts
At the t ime the p e t i t i o n s were
f i l ed
p e t i t i o n e r
re s ided in
years a t
i s su e but f i l e d separa te
re tu rns
for those years .
a nurse and
who, dur ing
sometimes employed by Dr.
Trowbr idge s pr o f e s s i ona l
corpora t ion .
Both p e t i t i o n e r s
are ca lendar
1998.
Ms.
through
Ju ly
1993, 1994, and
Revenue
Service
(IRS)
a
Return
IRS
2
As
Trowbr idge s
he
for
the
to t ax
year .
14-20333.153
of Dr.
Trowbridge's 1993
tax
s ta tement
to
volunteer
concerning
assessment
balance
due
t ax .
Be t
and t oge the r ,
therefore ,
deny
and
do
not
admit
of
reference to
The tax re tu rn
read as
a whole
shows no
zero and zero i s the
s t a r t i n g poin t in determining
a
John has
provided payment
in the
The
1993
s igned
Form 1040
On January 16, 1997, Dr. Trowbridge mailed to the IRS a Form
1040, U.S. Individual Income Tax Return 1994 (Dr. Trowbridge's
1994 Form 1040), which the IRS
received on
$170,144
TT CHED
DISCLAIMER STATEMENT--ADMITTED
14-20333.154
- 6 -
T X LIABILITY IS ZERO . In substance, the a t t ached di sc la imer i s
i d en t i ca l to
the 1993
IRS
Trowbr idge 's t ax
for 1994 of $121,075. The only payment made by Dr. Trowbridge
fo r 1994 was
1994
Form
1040.
the
IRS
a
Form
1040,
Income
1995
Form
on
January
27,
1997.
On
page
of
$133,977
bu t s t a t ed : SEE TT CHED DISCLAIMER STATEMENT--ADMITTED
T X LIABILITY
i s
to
the IRS
no other
Dr. Trowbridge
fo r
1995
Form
1040.
14-20333.155
1991
1991
1991
1991 Form 1040),
page
2
of
1991
5,203
and
SEE
re fe rs
to her but , in substance , i s i d en t i ca l
to
the IRS
Respondent
1991
of
6,197.
Mart in
1992
(Ms.
1992 Form 1040),
page
1992 Form
of
1,805
and
a t t ached
di sc la imer r e f e r s to
her
but , in subs tance , i s i d en t i ca l
to the
1993 di sc la imer .
14-20333.156
purpor t ing
for
1992.
Respondent
determined a
def ic iency in Ms. M art in s t ax
fo r
1992 of
for