Free Motion to Dismiss - Rule 12(b)(1) - District Court of Federal Claims - federal

,-

Case 1:05-cv-00955-LAS '1
)

Document 27-5

.,-~ Filed 04/28/2006

Page 1 of 14

Departent of the TreasuryInteral Revenue Serice

j ~ (IjJ(I X
(Rev. November 2004)
Your first name and initial

Amended U.S. Individual

Income Tax Return
~ See separate instructions.
Last name

OMS No. 1545-0091

This return is for calendar'year ~

1998

. or fiscal year ended ~
Your social security number

l; ..
.. i:
o
II

CD Co

D. GORDON
If a joint return, spouse's first name and initial
Home address (no, and street) or P.O, box if mail is not delivered to your home

POTTER
Last name

'¡: Co CD

II

P.O. BOX 887
City, town or post offce, state" and zip code. If you have a foreign address, see page 2 of the instructions.

CD

ã:

BENICIA, CA 94510

For Paperwork Reduction Act Notice, see page 6.

A If the name or address ~hown above is different from that shown on the original return, check here . ~ 0

B Has the original return tleen changed or audited by the IRS or have you been notified that it wil be? i; Yes 0 No
C Filing status. Be sure to !complete this line. Note. You cannot change from joint to separate returns after the due date.
On original return ~ 0 Sin¡jle 0 Married filng jointly GZ Married filing separately 0 Head of household 0 Qualifying widow(er)

On this return ~ 0 SinQle 0 Married filng jointly GZ Married filing separately 0 Head of househoid 0 Qualifying widow(er)

* If the qualifying person is . child but not your dependent, see page 2.

Use Part II on ~he back to explain any changes

A. Original amount or amount of increase as previously adjusted or (decrease)(see page 3)
explain in Par 11

B. Net chang_

c. Correct

amount

Income and Qeductions (see pages 2-6)
1

Adjusted gross incqme (see page 3)

1

2 Itemized deductions or standard deduction (see page 3).
3 Subtract line 2 from line 1 . 4 Exemptions. If charyging, fill in Parts I and II on the back 5 Taxable income. Subtract line 4 from line 3 .

2

~
:e
l'

6

Tax (see page 4). Method used in col. C_S_G!"~I?_ll_~~_~____.

3 4 5 6
7

1,184,723 48,981 1,135,742
0

(868,208) 35,023 903,231
0

316,515 84,004 232,511
0

1,135,742 431,256
0

903,231 (363,086)
0

7 Credits (see page 41) .

:J 8 Subtract line 7 from line 6. Enter the result but not less than zero . x 9 Other taxes (see page 4) f! 10 Total tax. Add lines' 8 and 9
11 Federal income tax withheld and excess social security and tier 1 RRTA tax wit~held. If changing, see page 4 . 12 Estimated tax paYrTents, including amount applied from prior

8
9 10
11

431,256
0

(363,086)
0

431,256
72,043
o o o o

(363,086)
o o o o o

232,511 73,577 0 73,577 0 73,577

72,043
o o o

~ year's return 12
18 Total pa ments. Ad lines 11 throu h 17 in column C

~ 13 Earned income cre~m (EIC) 13

0. 15 Credits from Form 2439, Form 4136, or Form 8885 15

~ 14 Additional child tax, credit from Form 8812 14
16 Amount paid with rekuest for extension of time to file (see page 5) . 17 Amount of tax paid with original return plus additional tax paid after it was fied

o

16 17 18 19

5,800 354,500 432,343
712 431,631
o

Refund or Amount You Owe
19 Overpayment, if any, as shown en original return or as previously adjusted by the IRS 20 Subtract line 19 fram line 18 (see page 5)

20
21

21 Amount you owe. If line 10, column C, is more than line 20, enter the difference and see page 5 22 If line 10, column ç, is less than line 20, enter the difference . 23 Amount of line 22 you want refunded to you .

22 23

431,631 431,631

24 Amount of line 22 'ou want applied to your estimated tax 24

Jointretum?--' See for ~ ll.zoloÇ" page 2. ~. ~~
your records. Your signature' Date
Keep a copy

Sign Under penalties of perjury, I declare best iof my knowledge and belief, this amended retum is tre, correct, and complete.including accompanying schedules and statements, arjd to the that have filed an original retum and that i have examined this amended retum, Declaration of preparer (other than Here taxpayer) is basd on all information of which the preparer has any knowledge.

~
Spouse's signature. If a joint retum, both must sign. Date
Preparer's SSN or PTlN

Paid signature r,
Preparer's Firm's nam

Preparer's li

Use Only yours if self-employed),
address, and ZiP code
Cat. No. 11360L
Form 1040X (Rev.

11-2004)

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Ii

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it

EXHIBIT
4

~
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30

Case 1:05-cv-00955-LAS
Form 1040X (Rev. 11-2004)

Document 27-5

Filed 04/28/2006

Page 2 of 14
Page 2

Exemptions. S$e Form 1040 or 1040A instructions.
If you are not changing your exemptions, do not complete this par. If claiming more exemptions, complete lines 25-31. If claiming fewer exenlptions, complete lines 25-30.
25 Yourself and spouse

reported or as
previously

A. Original number of exemptions

B. Net change

c. Correct
number of exemptions

adjusted

Caution. If someone can claim you as a dependent, you cannot claim an

separation . 28 28 Other dependents.27 29 Total number of exemptions. Add lines 25 through 28 29
27 Your dependent children who did not live with you due to divorce or
30 Multiply the number of e~mptions claimed on line 29 by the amount listed
below for the tax year you are amending. Enter the result here and on line 4.

26 Your dependent childre¡ who lived with you 26

exemption for yourself.

year artount amount on line 1 is over:

Tax Exemption line 4 on page 3 if the

But see the instructions for

2004 $~,100 $107,025 2003 ~,050 103,000 2002 ~,OOO 104,625

2001 2,900 99,725
(a) First name
Last name

31 Dependents (children al1d other) not claimed on original (or adjusted) return:
(bl Dependent's social
securi number

No. of children
on 31 who;

c epen t' s child for child tax ( I D d en (d) ,¡ jf qualifying . lived relationship to you cred~ (see page 5) you

with

~D

Explanation of (thanges to Income, Deductions, and Credits

o o o o o o

. did not live

with you due to divorce or

separation (see page 5) . ~
Dependents
on 31 not

entered above ~

D D

attachments.

Enter the line nUiTber from the front of the form for each item you are changing and give the reason for each change. Attach ollly the supporting forms and schedules for the items changed. If you do not attach the required information, your l=orm 1040X may be returned. Be sure to include your name and social security number on any

If the change relates to a netioperating loss carback or a general business credit carryback, attach the schedule or form
that shows the year in which the loss or credit occurred. See page 2 of the instructions. Also, check here. . ~ 0

SEE ATTACHED RIDER

Presidential Elec ion Cam ai n Fund. Checkin below will not increase our tax or reduce our refund.
If you did not previously want $3 to go to the fund but now want to, check here . . . . . . . . . . . ~ 0
If a joint return and your spouse did not previously want $3 to go to the fund but now wants to, check here. . ~ 0

Form 1040X (Rev. 11-2004)

31

Case 1:05-cv-00955-LAS
Rider to Fonn 1040X

Document 27-5

Filed 04/28/2006

Page 3 of 14 D. G r

D. Gordon Pott~ is an individual with expertise in the mechancal engineering industry paricularly wi~ respect to the assembly, repair, servicing and reinstallation of pumps, gearboxes and other rotating equipment commonly used in the oil refining and chemical industres. Dur:pg the year at issue, D. Gordon Potter entered into an employment contract and rel*ionship with Pixley Services Limited, a company based in Dublin,
Ireland. The rights obtained by Pixley Services Limited from the employment

relationship with D. Gordon Potter were transferable in par. Pixley Services Limited
transferred certain rights to the employment services of

durng the year at issue. Release Me, Inc. contracted with Unico Service Co., Inc. to
provide skiled i,bor. Pursuant to this contractual relationship with Pixley Services

Release Me, Inc" a company engaged in the business of employee leasing and employee temporar servioes. Thus, D. Gordon Potter became an employee of Release Me, Inc.

Dean D. Gordon Potter to

Limited, Releas~ Me, Inc. paid to Pixley Services Limited a contractual price for the purchase of certain rights to the employment services of D. Gordon Potter. As par of the contract betweeQ Unico Service Co. and Release Me, Inc., Release Me, Inc. provided the services ofD. G~rdon Potter. Whle providing services to Unico Service Co., D. Gordon Potter worked on multiple business projects in conjunction with Unico
Replacement PaIs, Inc. and Unico Industrial Services, Inc., companies related to Unico Service Co.

Unico Service C~. made periodic payments to Release Me, Inc., pursuant to the skiled
labor contract di~cussed above. Release Me, Inc., in tu, paid substantial wages to

D. Gordon Potter pursuant to the Potter's contractual rights set forth in the employment contract with Pixley Services Limited, which had been assigned to Release Me, Inc. D. Gordon Potter included these wages in income and paid tax, accordingly.
Pursuant to the cqmtractual employment agreement of

Pixley Services Limited and

D. Gordon Potter~ Pixley established and fuded a non-vested, retirement plan for the

future benefit ofp. Gordon Potter. The non-vested, retirement plan was equivalent to a Pixley Services Limited. The non-vested, retirement plan is a non-transferable plan, and D. Gordon Potter has no
revocable trst th~t was subject to the creditors of immediate right t~ receive the benefits of

the non-vested, retirement plan. Therefore, the

contrbution madt by Pixley Services Limited for the future benefit ofD. Gordon Potter constitutes deferr~d compensation, which is not includable in income ofD. Gordon Potter until a future dat~ when the retirement plan vests and disbursement are available to D. Gordon Potter. See I.R.c. §§ 83,451.
The Form of

the l'ransaction Must Be Respected

The Commission(tr erroneously asserts that the above transaction lacks economic substance, and thtt above transaction should be disregarded and re-written for federal tax
purposes. The Commissioner, instead of respecting the form, desires to treat the

transaction as a di~ect employer-employee relationship between D. Gordon Potter and
Unico Industrial Services, Inc. and Unico Replacement Pars, Inc. Thus, the

Commissioner alleges that D. Gordon Potter must recognize as income during the year at

3Z

Case 1:05-cv-00955-LAS
Rider to Form 1040X

Document 27-5

Filed 04/28/2006

Page 4 of 14 D. G

issue, the full arunt of payments from Unico Industral Services, Inc. and Unico Replacement Pars, Inc. to the unelated employee leasing company, Release Me, Inc.

The Commissionir's assertion that the transaction lacks economic substance and should be disregarded aid re-wrtten is in direct conflct with relevant case law. In Coltec Industres Inc. v.iUnited States, 62 Fed. Cl. 716 (2004), the Cour ruled that a similar arangement was¡ valid, in which a company transferred contingent liabilities associated with asbestos claims against a subsidiar to an entity the company created and then sold at a loss. In so raling, the Cour stated, "(W)here a taxpayer has satisfied all the statutory
requirements established by Congress, as Coltec did in this case, the use of

the 'economic substance' doctrhe to trmp 'mere compliance with the code' would violate the
separation of

powers. . .." See also TIFD III-E, Inc. v. United States, 342 F. Supp. 94 (D.Conn. 2004).
the statutory requirements set forth in I.R.C §§ 83,451. Therefore, pursuant to Coltec and TIFD III-E, the economic substaice doctrine does not apply, and the transaction set forth above must be respected, may npt be disregarded, and may not be re-written.
The transaction set forth above satisfies the plain language of

Penalties Do No~ Apply
Ifit is ultimatelyjconcluded that D. Gordon Potter is not entitled to a refud of

the tax in

the case at hand, penalties do not apply in this case. Where a taxpayer takes a position that has a reasonable basis in law and fact, neither the negligence penalty nor the substantial understatement penalty shall apply. 1.R.e. § 6662. Under Treas. Reg. the § 1.6662-3(b)(3), a return position is reasonable where based on one or more of authorities listed ¡in Treas. Reg. § i .6662-4( d)( (3)(iii). As set forth above, the plain
language of the statutes and published case law supports the retur position of

D. Gordon Potten. The issues in this case represent a previously untested, complicated area ofthe tax law that is subject to multiple reasonable interpretations. Therefore, no penalties should attach.
Moreover, the reasonable cause and good faith exception in Treas. Reg. § 1.6664-4 may
relieve taxpayersifrom liability from penalties even if

the retu position does not satisfy

the reasonable ba.sis standard. Reasonable cause is established when a taxpayer shows that he reasonablv relied on the advice of an accountant or attorney. United States v. Boyle, 469 U.S. i41 (1985). In the case at hand, taxpayer relied upon the advice of competent accouttants and attorneys, and, therefore, satisfies the reasonable cause exception.
Taxpayer is also ~ntitled to additional deductions for real estate taxes paid durng the year

at issue.

For the above staled reasons, taxpayer respectfully requests that the Commissioner grant penalties taxes paid durng the year at issue and reverse the assessment of him a refud of
and interest.

.13

Case 1:05-cv-00955-LAS
Rider to Form 1040X

Document 27-5

Filed 04/28/2006 Page 5 of 14 D. G

REOUEßT FOR IMEDIATE REFUN CLAI DISALLOWANCE

Pursuant tp I.R.M. 4512(2)(g)(Jan. 30, 1987), taxpayer D. Gordon Potter respectfully requ~sts that the Commissioner immediately disallow this refund claim without adminstiative consideration. See I.R. 1600 (Apr. 26, 1976),9 Stand. Fed. Tax Rep. (CCH) ir 66(19 (1976).
In supporl of the merits of

this Request for Refud Claim Disallowance, taxpayer submits that

this ~efud claim have previously been the subject of an administrative

examination. Re4evaluation by the Commissioner of and serve only to

this refud claim would be fritless

delay commencement of a refud suit by taxpayer.

This Request for Refund Claim Disallowa.'1ce is for the taxable year 1998 of

taxpayer for federal income tax. The amount ofthis refud claim is equal to $430,544.
Taxpayer ,agrees that the Commissioner's granting of this Request for Refund Claim Disallowaice and issuance of a Certified Notice of Claim Disallowance will limitations for filing a refund suit the two-year period of commence the ruing of pursuant to Proc. & Admin. Reg. § 301.6532-1(c).

WHEREFORE, taxpayer respectfully requests that the Commissioner immediately issue a Certified Notice of Claim Disallowance on an expedited basis disallowing the fill amount, $430,544, oftms refund claim.

~~

D. Gordon Potter, Taxpayer

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Case 1:05-cv-00955-LAS

Document 27-5

Filed 04/28/2006

Page 6 of 14

Internal Revenue Servic.

Department of the Treasury

FILE COpy

Internal Revenue Sennce 1301 Clay Street, 895S
Oakand, CA 94612

Date:

AP 07 200

IRS Contact Person

Name:
Leonard Antonio Telephone Number.

Unico Services, Inc., aka

(510) 637-2590

Identifcation Number:

Unico Service Co. Inc.; aka Unico Services Co., Inc.; fka
Unico Replacement Pars Inc.

94-09515
Location Symbols:
Last Day to File a Petiton With the
United Sjul Tfr iouïoolt

P. O. Box 887
BenicÍa, CA 94510-0887

Taxpayer Identifcation Number:

95-2885601

NOTICE OF DETERMINATION OF WORKR CLASSIFICATION
Dear Taxpayer,
This letter is your Notice of Worker Classification ("Notice"), as required by law, to notify IDe termnation of you (before assessment) that ~e have determined that you owe additional employment ta, additions to tax, and/or penalties for the tax pqriods identified below.

We have made three determÌJations:

· we have determimld that for puroses of federal employment taxes, the individual( s) described

or listed in Table 1 below are to be legally classified as employees for the tax periods indicated;
· we have determmid that with respect to such individual(s) you are not entitled to relief employment tax undbr the treatment described in section 530(a) of

from the Revenue Act of 1978; and

· we have determad that for the tax periods indicated, you owe additional employment tax,

additions to tax, and/or penalties in the amounts set forth in Table 2 following the list of reclassified individuals. (Please be aware that the figues on Table 2 do not include the interest that is required by law to be imposed on underpayments of tax.)

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~ EXHIBIT ..
5

Letter 3523 (1-2002)
Catalog Number 33170R

J5

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Case 1:05-cv-00955-LAS

Document 27-5

Filed 04/28/2006

Page 7 of 14

For the tax periods imficated, we determined that the following individua(s) are to be legally classified as your employees:

Individuars

TABLE 1
Tax Periods

Year
Dean Gordon Potter
2000

3rd 4th Calendar Quarter Quarter Quarter Quarter Year
0

1st

2nd

200,000.00 200,000.00 132,000.00 532,000.00

.

,

r.2J
!3~

Letter 3523 (1-2002)
Catalog Number: 33170R

Case 1:05-cv-00955-LAS

Document 27-5

Filed 04/28/2006

Page 8 of 14

Table 2 indicates the ~roper amount of employment ta, additions to ta, and/or penaties that

the above-listed individuas as employees. Please note that these figues do not includel the interest that accrues on the underpayment of ta.
arses from the c1assi~cation of

TABLE 2

Tax Period Ending
Sept. 30
$

Year Type of Tax
2000 2000 2000
Flosprtal Insuance
Income Tax Witholding

¡

March 31
0
$ $ $

June 30
9,448.80 $
5,800.00 $
56,000.00 $

Dec. 31

TOTAL
$

Old Age, Surivor, Disaijlity Insurance $

9,448.80
15,428.00

0
0 0 0 0

5,800.00
56,000.00

$ $

3,828.00

36,960.00 $

148,960.00

Federal Unemployment l1ax Act

2000 2000

Addition to Tax I.R.C. § ¡6656

$ $

762.44 $
14,249.76 $

290.00 $
12,360.00 $

191.40 $
8,157.60 $

1,243.84

Addition to Tax I.R.C. § M62(a)
Penalty I.R.C. §

34,767.36

2000

TOTAL
Old Age, Survor, Disab~lity Insurance
Flospital Insurance
Income Tax Witholding

0

$

86,261.00 $

74,450.00 $

49,137.00 $

209,848.00

Federal Unemployment T~ Act

Addition to Tax IRC. § Addition to Tax IRC. §
Penalty I.R.C. §

TOTAL
Old Age, Surivor, Disability Insurance
Flospital Insurance
i

.

Income Tax Withholding ¡

Federal Unemployment T~x Act

Addition to Tax I.R.C. §

Addition to Tax I.R.C. §
Penalty I.R.C. §

TOTAL

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31

Letter 3523 (1-2002)
Catalog Number: 33170R

Case 1:05-cv-00955-LAS

Document 27-5

Filed 04/28/2006

Page 9 of 14

If

you want to contest any o~ all of our thee determations inthe United States Tax Cour, you must file a

petition with the United Statrs Tax Cour by the date indicated on the fist page of ths letter as the "Last
Day to File a Petition With t:e United States Tax Cour." You may ma the

wrte to the cour with questibns about the Tax Cour proceedings) at the followig address:
United States Tax Cour 400 Second Street, N.W.
Washigton, DC 20217

petition to the Tax Cour (and/or

The time you have to fie a pftition with the Tax Cour (that is, before the 91st day after the letter is mailed) is
set by law and canot be ext~nded or suspended. Therefore, contacting the Internal Revenue Service (IRS) or

contacting the Tax Cour for lnore information, or receiving other correspondence from the IRS, wil not change the period for fiing alpetition with the Tax Cour.
Worker Classification. Forms your additional employment ta liability. Form 2504-WC is a ~aiver form that you may use if you decide not to file a petition in the Tax Cour. Sending us a signed F~rm 2504-WC gives us permssion to assess the proposed amounts quickly and can help limit the accumulatÍ(!m of interest. Publication 3953, "Questions & Answers About Tax Cour Proceedings for Determinatiop of Employment Status Under I.R.C. § 7436" provides details about ths Notice and the Tax Cour proceedings.
Determination of 4666,4667, and/or 4668 pro~ide details on how we calculated the amount of We have enclosed several doçuments with this Notice of

you have any questions ab~ut this letter, you may wrte to the person whose name and IRS address are this lettfr. If you wrte, please include your telephone number, the best time for us to call you if we need more infoijation, and a copy of ths letter to help us identify your account. Keep the original letter for your record~.
If shown on the front of If you prefer, you may call thq IRS contact person at the telephone number on the front page of

ths number is outside your loçal calling area, there wil be a long distace charge to you. You may call the

this letter. If

IRS telephone number listed qi your local directory. An IRS employee there may be able to help you, but the contact person at our address ahown on ths letter is most familar with your case.

You also have the right to contact a Taxpayer Advocate. If you believe that your ta matter is not being resolved through established IRS procedures or you are suffering or about to suffer a signficant hardship, a Taxpayer Advocate may assis~ you in getting your tax matter addressed in a prompt and proper maner. A
Taxpayer Advocate, however, Idoes not have the ability to reverse legally correct ta determations, extend

the time fixed by law for filing a petition in the United States Tax Cour, or act as a substitute for established
IRS procedures, such as the fOfmal appeals process. If you would like to contact a Taxpayer Advocate assistace, please refer to secti~)l12 of of

your local Taxpayer Advoc~te.

the enclosed Publication 3953 for the address and telephone number

for

(4J
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Letter 3523 (1-2002)
Catalog Number: 33170R

Case 1:05-cv-00955-LAS

Document 27-5

Filed 04/28/2006

Page 10 of 14

Than you for your coop~ration.

Sincerely,

Mark W. Everson

~~~ ~ Emmtt Han

Commssioner By

Techncal Services Terrtory Manager ~

Enclosures: Form 2504- WC Agreeme~t to Assessment and Collection of Additional Tax and Acceptance of Overassessment in W orktr Classification Cases

Form 4666 Sumar ofE~ployment Tax Examation
Form 4667 Examination C~anges - Federal Unemployment Tax Form 4668 Employment T¡i Examination Changes Report
Publication 3953 Question

Employment Status Under I.R.C.§ 7436

land Answers About Tax Cour Proceedigs for Determation of

(5)
3q

Letter 3523 (1-2002)
Catalog Number: 33170R

Case 1:05-cv-00955-LAS
Fonn 4668

Nam an addess of ~loyer

EmYM --------------------------- TAX
i

Page _ of _ pages Depat of th Treasur - Inter Remi Servce --------------------------------Retu fODn mir

Document 27-5

Filed 04/28/2006

Page 11 of 14
941

EXON CH. RERT

i Emloyer idetification mir

-------------Calen year
2000
Last qurter of ths

(X) Ungr -------------------------+----------------------------------

-------------------.,------Extion discused with (na an title)
, i

P.O. Bo 887 ! Becia, CA 94510-0887

unco Serces, Inc., ak Unico Servte Co. Inc.; ak unco II 95-2885601 Serces Co., me.; fk unco Relacfmt Pars Ine.
I I

------------------1------ pety, or (decre) in tax I Total ta plus extion --------------() Ag (Subjec to accee by th Area Director)
$ 209,848.00

12/31/00

subject to ta unr IRC 3101 an 3111 I 073 I 2.900% I 0.00 I 200,000.00 I 200,000.00 I 132,000.00 -----------------------------------___________________________________

Quer ---------------------------+---------------------------------------Quer Quer Quer 1. Social secity an Medicae wag~ adjustmt 004 12.400% 0.00 I 76,200.00 I
Ref. I Rate I
3rd

IRS I Aplicale I

I (a) I

1st

(b)

(c) 2nd

(d)

4th

(e)

subject to tax unr IR 3509 (a) ! I 073 I I I I I ---------------------------------~------------------------------------------------------------subject to tax unr IRe 3509 (b) ! I 073 I I I I I ------------------------------,--------------------------------------------------------------4. Social secuity an Medicare tip ~djustmt 005'
------------------------------r-----~------------------------________________________________________ 5. Inco ta witholdi wage adjus~t I I 28.000% I 0.00 I 200,000.00 I 200,000.00 I 132,000.00

2. Social secuity and Medca wage¡ adjustmt 079

3. Social secuity an Medicare wag~ adjustmt I 079 I I I I I

subject to tax unr IR 3101 an 3111 I 073 I I I I I

-----------------------------------t---------------------------------------------------------------------------------6. Inco tax witholdig wage adjusj:t I I I I I I
------------------------------------l-----------------------________________________________________________________

7. Paymts subject to backu withidi I I I I i I

subject to tax unr IRe 3402 . I I I I I I subject to ta under IRC 3509 i I I I I I I
i

_:~__~~~~~_~~~c==~~:~::l~~___________~_~~~~________~______~_______~__________~_________

--------------------------------T------------------------------------------------------~--------------------------

, ------------------------------------T----------_________________________________________________________________ 8. AdjUSbnt to social secuity and!Medcae tax 185

under IRC 3406 , I I I I I I

(Lines 1,2,3,4 x rates) plus/miua Lie 8 I 007 I I 0.00 I 15,248.80 I 5,800.00 I 3,828.00 ---------------------------------~--------------------------------------------------------------------------------11. Total inco tax withlding i
---------------------------------~-------------------------------___________-M________________________________________
12. Tota backu withldi

10. Tota social secuity an Medca ta I I I I I I

(Lis 5,6 x rates) plus/mis Li 9 I 003 I I 0.00 I 56,000.00 I 56,000.00 I 36,960.00

-------------------------------------~--------------------------------------------------------------------------------------13. Delinquent ta or inease (de=eese) in tax (Lines 10, 11 an 12) 0.00 I 71,248.80 I 61,800.00 I 40,788.00 -------------------------------------~------------------------------------------------------------------------------------14. Penlty co section 6651 --------------------------------------~----------------------------------------------------------------------------------=:~__~=~~ co~~~~~~~:~________~--::~i~~----____________________________________~~~~~~_______~:~~~_~______ 191 ~ 40
=~~__:~=:=_ e0d:~~~~~66=__________~~-~~?--------------~----~----------__~___ 14, :~9. 7~~____ 12:=~0. o~~__~ LS~~~

(Line 7 x rate) 008

-----------------------------------~------------------------------------------------------------------------------------Unr IRC sections 6051 an 6071 and tl reations unr those sections, yo ar reqred to fush FODn W-2c (Statemt of

17. Maum ta available for abteiunder IRC 3402(d) I I 56,000.00 I 56,000.00 I 36,960.00

adjusted by ths report. Also, you are! reqred to file the origin of thse statemts with Fonn W-3c (Tranttal of Correced

Co=eced In and Tax Amts) on ori before the lat day of Jan to each of th 1 emloyees whose wages were

Incom an Tax Statemts) by the last l:y of Febru IRC 6721 an 6722 provide peties for failure to file and
faiure to fush these statemts by th requred dates. Please file these statemts with:

Intern Revee Servce
1301 Clay Street, Ste. 990S Attn: Edward Tillotson

Exner's signture ~ :;dI~
Edwar Tillotson 94-0668~~
ONCO
Seq 1

Oakand, CA 94612 ---------------------------------------------------------------------------------------------------------------------Group No.

District

Date

1375 Norteni Caifonra 3/18/2004 --------------------------------------------------------------------------------~--------------------------------------A

ilO

Case Filen: 0000

1:05-cv-00955-LAS Year: 2000

Potter, De Gordo Potter, De Gordo

Potter, De Gord

-----------------t---------------Potter, De Gordo
A A

NA 1 SSN BlCH CHCK DA AMUN
03/20/00
OS/22/00
A A

03/18/04

Document 27-5

Filed 04/28/2006
Page

Page 12 of 14

CH NO. CCMS

---------

07/03/00 12/14/00

0.00 200,000.00 200,000.00 132,000.00

Tota Amunt $

532,000.00

t. i

Foi: 2504-WC ~' . art of th Treaur -- Inter Reve. Servce .-------~:_:::::~:~

Case 1:05-cv-00955-LAS Document 27-5 Filed 04/28/2006 --------..------------¡-- ------------------------('
AC£ 1\ OF OVSESM IN WORK.

:;:'

Page 13 of 14

i i (Emloymt Tax) I
CLSIFICATION. CAES
unco Servces, Inc.,aka Unicq Serce Co. Inc.; aka 95-2885601
i

TO ASSESSM 1\ COLLCTION OF ADDITION TAX 1\ Revee Servce

;::~-~;-:- EI, an -~~~~;- t~tr (s~-~~;'-~:;~~~~;- or .~~-:~~~~- zip -~~--------------------------

Becia, CA 94510-0887

P.O. Bo 887 I

Orco Servces Co., Inc.; fk IOrco Replacet Pars Inc.

00

---------------------------------------------------____________________________________
Tax Period Ende I Retur Fom I Kind of Tax an Intenl I Amt of Tax I Pety

¡ Adtiona Tax an Pelties -----------------------~-----------------------------------------------------------

----------------------------------r-------------------------______________________________________________
03/31/00.- 12/31/00 I 941 I ¡ FICA and inc tax witholdig: Sec. 3101 3111 3402 I 173,836.80 I 36,011.20

--------------------------------t-------------------------------------------~-----------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------~---------------------------------------------------------------------------------------------------t---------------------------------------__________________________________________________

---------------------------------t------------------------~--------------------------------------------____________

--------------------------------t-------------------------------------___________________________________________

----------------------------------i---------------------------------------------------------------____________________________
--------------------------------------4---------________________________________________________________________________________

--------------------------------------4---------------___________________________________________________________________________

------------------------------------------------------------------------------------------------------------------____________ -------------------------------------¡-------------------------------------------------------------------------------------------

i' i I i II I I I I I i I I I I
I i

I Nur I Revenue Code Secon I I

, Total I 173,836.80 I 36,011.20
, Decrease in Tax an Penaties

I ¡ i . , ¡ I

I I I I I II I I i I I I i

-----------------------------------1-------------------------------------------------------------------________________________ Tax Period Ended I Retur Form i Kid of Tax and Intern I Amt of Tax I Penty

-------------------------------------~--------------------------------------------------------------------------------------------i

---------------------------------------r---------------------------------------------------------------------------------------__ ---------------------------------------~---------------------------------------------------------------------------------------------------------------------------------~-------------------------------------------------------------------------------------------i --------------------------------------~------------------------------------------------------------------------------------------

I I ¡ I I I I I I
I Nur I Revenue Code Section I I

---------------------------------------r-------------------------------------------------------------------------------------------NO: If' you consent to the assessmnt of the amounts WH MOST SIGN
sho in ths agreemnt, your signturelwill expdite If you are ma ths agrent for a parership, all pars
our adjustnt to your account. Your c~nsent will not mut sign. Howver, one paer may sign with appropriate evidece prevent you fro filing a cla for refij (after you of authorization to act for th partnership.
to a refud. It will not prevet us frd, later deter- th signture and title of th officer(s) authorized to sign.

Signtues I Date Date i I I Date By I Title
~~

of the Intern Reveue Co of 1986, d that I will not be able to contest the issues coveed by ths agreent in the United

States Tax Cour. ' ---------------------------------------~-------------------------------------------------------------------------------------------

I consent to th indiate assessmã' and collection of any addt.iOna ta and penalties and accept any ovrassessmt (de=ease in tax an peties) show abve, plus any interest provide by law. I understa tht by sign ths a eent, I am waiving th restrictions on assessmt provide in section 7436(d) an 6213(a)

, Total I I

---------------------------------------t-------------------------------------------------------------------------------------------------------------------------+--------------------------------------------------------------------------------------

have paid th tax) if you later believe ¡ yo are entitled For a corpration, enter the na of the corpration follow by
ming, if necessar, tht you owe addtional tax nor For an agent or attomey actg unr a poer of attorny, a power exen th tim provided by law for either action. of attomey mut be sent with ths fom if not previously filed.

----------------------------------------------------------------~------------------------------------------------------------------

UNCO

'. Page _ of _ pages Fonn 4666 I I Depat of the Treasur -- Intern Reve Servce
Case 1:05-cv-00955-LAS
I I

Document 27-5

Filed 04/28/2006

Page 14 of 14

-----------------------~------1_-------------------------------------------------------______________________

Nam an addess of erloyer
Unico Serviæs, Inc.,ak Unco

-¡---------------------------------------------------------------I Emloye idetification numer I Date of report
servc~ Co. Inc.; ak
i i I

: SG.Y OF EMYM TAX EXTION

Unco Serviæs Co., Inc.; fka
Unco Replacemt Parts Inc.
P.O. Box 887

I----------------------------------------------------------~----I (X) Increase (dease) in ta (retur filed)
1 Ty of reprt () Delinent tax (Retu not filed)
I () Agreed (Ths rert is subject to acceptae by th Area Director)

I 95-2885601 I . 03/18/04

Becia, CA 94510-0887

1-----------------------------------------------------------------

-----------------------------------l-----------------------------------------------------------------___________ ------------------------------------,-------------------------------------------------------------------------------------

i Followin is a sui of the results pf my extion of your retun as sho on th attached pages of ths reprt.

i i 00 Unagreed -------------------------------~----------------------------------------------------------------------------

a I Retur III c I I die IPage b i Deint ta Penaty I Total I f Calen 1

'Year I Form I I Increase 1--------------------------------------1 Tax and Penaty I Nur

-----------------------------------t---------------------------------------------------------------------______________ 01/01/00 - 12/31/00 I 941 I: 173,836.80 I 6656 6662 I 36,011.20 I 209,848.00 I -------------------------------------r--------------------------------------------------------------------------------------------------------------------------l-----------------------~-----------------------------------------------------------------

-----------------------------------T-----------------------------------------------~-------------------------------------

----------------------------------~--------------------------------------------------------------------------------i

--------------------------------l----------------------------------------~----_____________________________________

-------------------------------------t----------------------------------------------------------------------________________

------------------------------------t----------------------------------------------------------------------------------------------------------------------~t_-------------------------------------------------------------------------------------i -------------------------------------1------------------------------------------------------------------------__________________

Total 1 I 173,836.80 I I 36,011.20 I 209,848.00 I --------------------------------------1------------------------------------------------------------------------------------------Other inomition i
Ths dos not constitut~ an incom tax extion.

-----------------------------------1----------------------------------------------------_______________________________________

I I I I I I I I i

1 Nu 1 i (Decrease) I Co Section I Amunt I I of Rert

i .
i

I:¡ I i I I' I I I I i I I I i i I I i I IIi I I I i I I I i i II

I I I I I I I I I

I I I I I I i I i

-- ----------L----------------_____________________________________________________________________

=~l:~~~~~~~~:~~~t~e ~ y#~ : ~~~~: Califoni --------------------------------------~---------------------------------------------------------------------------------------UNICO

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