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

Case 1:05-cv-00743-FMA

Document 19-2

Filed 12/07/2007

Page 1 of 16

No. 05-743 T (Judge Francis M. Allegra)

IN THE UNITED STATES COURT OF FEDERAL CLAIMS ______________

ELWOOD J. LEBLANC, JR. and JANICE L. LEBLANC, Plaintiffs, v.

THE UNITED STATES, Defendant. ______________ APPENDIX B TO BRIEF FOR THE UNITED STATES IN SUPPORT OF ITS MOTION TO DISMISS THE COMPLAINT ______________ RICHARD T. MORRISON Acting Assistant Attorney General DAVID GUSTAFSON STEVEN I. FRAHM KAREN SERVIDEA Attorneys Justice Department (Tax) Court of Federal Claims Section P.O. Box 26 Ben Franklin Post Office Washington, D.C. 20044 (202) 616-3423 (202) 514-9440 (Fax)

Case 1:05-cv-00743-FMA

Document 19-2

Filed 12/07/2007

Page 2 of 16

TABLE OF CONTENTS Exhibit Number N/A 1 Page B-1 B-3 Description Declaration of Karen Servidea U.S. Partnership Return of Income of Agri-Cal Venture Associates for the taxable year ending November 30, 1986 Plaintiffs' 1986 U.S. Individual Income Tax Return Plaintiffs' Form K-1, Partner's Share of Income, Credits, Deductions, etc. for the November 30, 1986, taxable year of Agri-Cal Venture Associates IRS transcript for plaintiffs' 1986 taxable year Notice of Final Partnership Administrative Adjustment for the November 30, 1986, taxable year of Agri-Cal Venture Associates Petition to the United States Tax Court in the case of Agri-Cal Venture Associates v. Commissioner of Internal Revenue, Docket No. 12530-90 Letter dated May 5, 2000, from plaintiffs' counsel to the IRS, enclosing a partial settlement offer (Form 870P(AD)) signed by plaintiffs Partial settlement agreement (Form 870-P(AD)) signed by plaintiffs and the IRS Notice of computational adjustment (Form 4549) for plaintiffs' 1986 taxable year, sent from the IRS to plaintiffs, dated March 5, 2001 Notice of assessment for plaintiffs' 1986 taxable year, from the IRS to plaintiffs, dated March 26, 2001 Source N/A Plaintiffs' counsel Plaintiffs' counsel Plaintiffs' counsel Plaintiffs' counsel Plaintiffs' counsel Public records of the United States Tax Court Plaintiffs' counsel

2 3

B-14 B-22

4 5

B-26 B-29

6

B-35

7

B-49

8

B-53

Plaintiffs' counsel Plaintiffs' counsel Plaintiffs' counsel

9

B-55

10

B-63

B-i

Case 1:05-cv-00743-FMA

Document 19-2

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Page 3 of 16

TABLE OF CONTENTS (CONTINUED)

Exhibit Number 11

Page B-67

Description Decision of the United States Tax Court in the case of Agri-Cal Venture Associates v. Commissioner of Internal Revenue, Docket No. 12530-90 Certified Record of Assessments, Payments, and Other Specified Matters for plaintiffs' 1999 taxable year Letter dated May 24, 2002, from plaintiffs' counsel to the IRS, enclosing a refund claim for plaintiffs' 1999 taxable year Letter dated July 10, 2003, from the IRS to plaintiffs, disallowing their 1999 refund claim

Source Public records of the United States Tax Court IRS administrative files IRS administrative files IRS administrative files

12

B-70

13

B-74

14

B-84

B-ii

Case 1:05-cv-00743-FMA

Document 19-2

Filed 12/07/2007

Page 4 of 16

IN THE UNITED STATES COURT OF FEDERAL CLAIMS ____________ No. 05-743 T (Judge Francis M. Allegra)

ELWOOD J. LEBLANC, JR. and JANICE L. LEBLANC, Plaintiffs, v. THE UNITED STATES, Defendant. __________ DECLARATION OF KAREN SERVIDEA __________ I, Karen Servidea, make the following declaration based on personal knowledge of the following facts: I am the Department of Justice trial attorney assigned to defend this case. I am appending copies of the following documents, which I received from the Internal Revenue Service in connection with this case and, which, to the best of my knowledge and belief, are true and correct copies of what they purport to be:1 Exhibit 13 14 Description Letter dated May 24, 2002, from plaintiffs' counsel to the IRS, enclosing a refund claim for plaintiffs' 1999 taxable year Letter dated July 10, 2003, from the IRS to plaintiffs, disallowing their 1999 refund claim

Personal information has been redacted from the attached copies pursuant to General Order 42A of the United States Court of Federal Claims. B-1

1

Case 1:05-cv-00743-FMA

Document 19-2

Filed 12/07/2007

Page 5 of 16

Executed in Washington, D.C. under penalty of perjury on December 7, 2007.

/s/ Karen Servidea KAREN SERVIDEA Attorney of Record U.S. Department of Justice Tax Division Court of Federal Claims Section P.O. Box 26 Ben Franklin Post Office Washington, D.C. 20044 (202) 616-3423

B-2

Case 1:05-cv-00743-FMA

Document 19-2

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Page 6 of 16

Defendant's Exhibit 1

B-3

Case 1:05-cv-00743-FMA

Document 19-2

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Page 7 of 16

7878-r
cC

OV~

.

02
OMB

,HTIAL RETURN

form 1065
Depanmenl oi Irie Treiisury

u. S. Partnership Return of Income
For calendar year 198. or fiscal year

Internal Ae..enue Servii;e

be innin DEe 1, 1985 and endin NOV 30
Name

A Pr1ílc.ipa! blJsine.; ictivily

FARMING
B Principal proc1Cl Q( service

GR i-CAL VENTURE AS50C I A TES /0 AMERICAN AGRI-CORP
Number and street

33-0189461
E 06te business stlned

CROPS VINEYARDS
C BU5iness code number

000 BIRCH 5T., EAST TWR STE 610
City or town, State. and zip code

SEPT

2, 1986

0400

EWPOR T BEACH
X

CA

92660

$

I

~
i

! 'i I
X

x

-1 , 309 , 608.
Q)

6,409 .

E

o

........................._--........................__.c eii.nee nel reni!l income (Io~s) ~ 6e

E

(J

7

8'
9 10
__.Bal.~

12b Minus ¡Dbs credii $-12a ro~h~:~~aa:~o ~:~I~Se'S) $

13 Guaranteed p;iyments to partners (see page 7 of Instructions) .
14 Rent,

i Sa Total deductible interest expense not claimed elsElhere on
return (see page 7 of Instructions,) . ' . , ' , . . . b W8M~I:n\r~:~' weN:drQ~~rdeWatl') ~"'~d l~r..9h 1~ p.rtnm o~ S:hedule. !-1

1Sb t:~
16 17 18

.,

or

"
o

t:

c Balance,
16 Taxes

" ii 7 Bad debts (see page 7 of Instructions) IV 8 Repairs. Cl
::
19a Deprecia1lon from Form 4562 (attach Form 4562)$., ...n'__'.. .". 'u' . ou".' 19b Minu.deprecialion c1.imed on

I io ~~;I:~':~ ;~: '~:;~:;::;:~~'::;;;;";;;;;i~~;;~;;g~ ;'~;'I~""~II";i ~ ~~ : 21a Retirement plans. etc, (see page 8 of Instructions) , 21a
b Employee benefit programs (see page 8 of Instructions) 21b
22 Other deductions (attach

schedule) SEE S:TÀT:E~E:Nt 4 22 634,885.
. Date

23 TOTAL deductions (add amounts in column for lines 12c throuoh 22) 23 634,885.
24 Ordinary income (loss) (subtract line 23 from line 11l , 24 - 34,119, 08:; ·
i UDder penaltie, 01 perjury I decl"e IlDI I ba.e ..amined ihis relu,", including ,ccDmpanylng .chedules and ,ulemeDts, .nd 10 Ihe be'l 01 my knowledge and

PI.... I .,,,., · " "" ""." ,.. ". .'" "dOl""" .1 "'..." I.'" ".. ,..."., " ..., .. '" ',,,,.''1.. " ..11. .",,,. ... .., "0. "...
Sign Here
.Signature of gener paner
Preparer's .
I

Chec if 1 p , . i .
E.\. No

Paid

signature
Firm's name (or

\ Date

self-em-.n reparer s socia secrity no, ployed ~
~ 95-3876414 zip Code ~ 92631
95_239B893

Preparer's
Use Only

if self-employed) and ~ 290 S TAT E

yours. JONES & MOYER, COLLEGE BLVD.
CAL I FORN I A

CPA S

address FULLERTON,

B-4

000272

Case 1:05-cv-00743-FMA

Document 19-2

Filed 12/07/2007

Page 8 of 16

AGR I -CAL VENTURE

'"ocrAltS

005

- ~78-50

03
Page 2

33-0189461

Form 1065 (198)

Cost of Goods Sold and/ or 0 erations (See Page 8 of Instructions.)
1 Inventory at beginning of year,

L1

2

2 Purchases minus cost of items withdrawn for personal use.
3 Cost of labor
4 Other costs (attach schedule)
5 Total (add lines 1 through 4)

3

4
5

6 7

6 Inventory at end of year '

7 Cost of goods sold (subtract line 6 from line 5), Enter here and on page 1, line 2 . 8 a Check all methods used for valuing closing inventory:

Ii) R Cost
(iil ~, Loier of cost or market as described in regulations section 1.471-4 (see page 8 of Instructions)

::~: b ~~:::~i~ ~~:::::;~ ::d:::':':I~~:i~;i';I."O",'""~"d471-2(d(d.'P'9'901d"'tr~'O",l..,'§--~"e e..:.....8........ ~...:--.
b Chec if the LIFO inventory method was adopted this tax year for any goods (if checked. attach Form 970) .
c If you are engaged in manufacturing, did you value your inventory using the full absorption method (reguliiions section 1.471-11)?,

d Was there any change in determining quantitieS, cost, or valuations between opening and closing inventory?

If "Yes." attach explanation.
I Distributive Share Items (See Pages 9-11, and 14 of Instructions,)

la) Distributive share items (b) Total amount
i ally allocated ordinary gain (loss)

1 Net long-term capital gain (loss) .
2 Other net gain (loss) under secion 1231 and spec

3 a If the partnership had income from outside the United States, enter the name of the country or U.S,

possession ~ b Total gross income from sources outside the United States. . 3b
i Balance Sheets (See Pages 5 and 9 of Instructions and Question M on Page i Before Completing Schedules Land M.) (dl (b)

Beginning of tax year End of tax year

Assets

1 Cash

.... -,-, c.-,"..".' :.-..,:.-.-,...........',.,...,......,.......... :;~~~::~:::~::: ;::~:::::::~::::: :::::':~::::::: .. .....-...,..-..........

4,~1.s ,609. .

2 Trade notes & accounts receivable i

il Minus allowance fpr bad debts.
3 Inventories .

27,550.

4 federal and Siele go'ternmenr obllgflionS
5 O1her current assets .

6 Mortgage and real estate loans .
7 Other investments.

8 Buildings iiid oilter deprecì!lble IISS8tS
a MinUS accumulated depreciiiion

9 Depletable assetS ,

a Minus accumuliied depletion
10 Land (net of any amortization)

11 Intangible assets
a Minus accumulated amortizatlon

12 Dther assets 13 TOTAL assets,

liabilities and Capital
14 Accounts Piiabie. .
15 ~fy~~1ieisn ~~~~s\h~~d ibOy~~~ .

10 000.

21,601,878.
968,600.

16 Other current I isbil ¡ties

17 All nonrecourse loans.
18 ~ao:~i~~e~n jOI::.r I~~ ~~~~s _

19 Other liabilities.

20 Partners' capital accounts 21 TOTAL liabilities and capital ~ Reconciliation of Partners' Capital Accounts (See Page 9 of Instructions,)
(5hOl recnciliation of each parter's capital accunt on Schedule K-1 (Form 1065). Question G.l

(s) Capitll .ccount ii (b) C.pilll coniribul.. (e) Ordinary Income lIo.sI (d) InCDme not included in column lei,

biginniftg al ye.' 12,inZ,6Õ 000. -'3'4 P'ïl'qineóâ 5. plu. oonl.uble income

(elio.ses nol included in column ici. (I) Withdr....ls .n. (g) C.pll.i .tCDonl

-¿1,4::9,085. plu. un.llowable deduciion. dimibutions ..1 enel 01 )(ar 95-2396893
B-5
000273

Case 1:05-cv-00743-FMA

Document 19-2

Filed 12/07/2007 005

Page 9 of 16

AGR I-CAL VLNTURE AS'
SCHEDULE F
(Form 1040)
Department 01 the Treasury
Imernal Revenue Service

'IATE...

- '78-50
OMB No. i 545-G074

04

Farm Income and Expenses
~ Attach to Form 1040, Form 1041, or

Form 1065,

1985
14
Social serity number (SSN)

~ See Instructions for Schedule F (Form 1040).

Name of proprietor(s)

AGR l-CAL VENTURE ASSOC 1 A TES
C/O AMER i CAN AGR I -CORP

A Agricultral Activ Code. IVirite in the tode thai b." d.serID.' your principal B Principal Product.lDestrib. in one or 'wo words your principal crop or oulpUI

income _ producing ICI¡"IY The tOdes ar liSled on pogo 2 01 'hi, sch.dule.)~ 0180 for ib. curr.n' ", yearJ ~ NUR S E R Y S TOe K
If you disposed of commodities received under payments-in-kind (PIK) program, check the box(es) that apply; Employe ID number (NOT SSN)

n Feed for livestock Sold and re rted in income 33-0189461
Farm Income - Cash Method - Complete Parts I and II
(Accrual method taxpayers ccmplete Parts II and IIi, and line 12 of Part Ll
1

Do not include sales of livestock held for draft, breeding, sport, or dairy purposes; report these sales on Form 4797.

i
3

Sales of livestoc and other items you bought for resale. Cost or other basis of livestock and other items you bought for resale.
Subtract line 2 from line 1

2
3

4

4
5

Sales of livestock. produce, grains, and other product you raised .
a Total distributions received from coper atives (from Form 1 099PA TRl i 5a

bLess: Nonincome items 5b
a Cash .
b Materials and services .

6 Net distributions. Subtract line 5b from line 5a
7 Agricultural program payments:

7a 7b
8

8 Commodity credit loans under election (or foreited)
9 Crop insurance proceeds

9 10
11

10 Machinewcrk .
11 Other income, including Federal and state gasoline tax credit or refund

12- Gross income. Add amounts on lines 3,4,6. and 7a through 11, If accural method taxpayer, enter the amount from Part III. line 52 ,

~ 12

Farm Deductions - Cash and Accrual Method
Do not include personal or living expenses (such as taxes, insurance, repairs, etc. on your homeL which do not produce
_ _ farm income. Reduce the amount of your farm deductions by any reimbursements before entering the deduction below.

13 Breeding fees 26 Morgage interest paid to financal 15 Conseration expenses 27 Other interest .

14 Chemicals. institutions .
20 Gasoline, trucking, 35 Utilities Freight fuel, oil 34 Taxes, 21
19 Fertilizers and lime. 6 293 76-.33 Supplies

16 Depreciation. and Secion 179 28 Pension and profit-sharing plans.
expense deduction (from Form 4562) 29 Rent of farm. pasture

2 583 838.

17 Employee benefit programs other 30 Repairs. maintenance

i 830

537.

than on line 28 31 Seeds. plants purchased 1 B Feed purchased. 32 Storage, warehousing purchased

22 Insurance 36 Veterinary fees, mediCine
23 a Labor hired 37 Other expenses (~ecìfy):
c Balance (subtract line 23b from

21 472 865.

b Jpbs credit SEE S T ~_T-E~E T 2
line 23a) ,
~ 38

24 Land clearing (see instructions)

25 Machine hire,

32 181 001.

38 Total deductions from Part II. Add amounts in coumns for lines 13 through 37e

39 Net farm profit or (loss) (subtrac line 38 from line 12). If a profit. enter on Form 104. line 19. and
on Schedule SE. Part i, line 1. If a loss, you MUST go on to line 40, (Fiduciaries and parterships. see the instructions.l

39

-32 181 001.

40 If you have a loss, you MUST answer thiS Question:

"Do you have amounts tor which you are not at risk in this farm (see instructons)?". 0 Yes C8 No
If "Yes," you MUST attach Form 6198. If "No," enter the loss on Form 104, line 19, and on Schedule SE, Part I, line1.

For Paperl Reduction Act Notic, _ Form 1040 Insctlns Schedule F (Form 1040) 1985
95-2396893

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000274

Case 1:05-cv-00743-FMA

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Filed 12/07/2007

Page 10 of 16

AGRI-CAL VENTURE , -SOCI.

~S

005

--'nS-50
OMS No

05
1,45-0099

33-0189461

SCHEDULE K
(Form 1065)
Uepiirtment 01 th~ TreiSU(Y

Partners' Shares of Income, Credits, Deductions, etc.
~ File this form if there "" more than ten Schedules K-1 (Form 1065) to beInstrctions Form 1065. filed with for Form 1065.
~ Atth to Form 1065. ~ See instctions for Schedule K (Form 1065) in the

1985

Inlernii\ Re'ienue Service

Emplover identll ie.lion number

Name of partnership AGR I -CAL VENTURE ASSOC IA TES
C/O AMER I CAN AGR I -CORP

33-0189461
(b) Total amount
*1

(a) Distributive share items
ûì i
or

-34 119 085.

o

=oi

1 Ordinary income (loss) (page 1, line 24L. 2 Guaranteed payments, ,." 3 Dividends qualifying for exclusion, 4 Net short-term capital gain (loss) (Schedule D, line 4) .
5 Net long-term capital gain (loss) (Schedule D. line 9) , 6 Net gain (loss) under section 1231 (other than due to casualty or theft
7 Other
8 Charitable contributions (attach listl. ,

2 3

E

a ..

, *4 *5 *6
7
8

I:

~8

" ",Ul

*9
10
11
*12

c:.
-Q Q¡ ~

9 Expense deduction fo recovery propert (section 179) from Form 4562
10 Other
11 Credit for income tax withheld. , ,

_ 0.1:

IE..
II

on U~ 12 Other . .. 13a Net earnings (loss) from self-employment.

- E"
C%W E

b Gross farming or fishing income .
c Gross non-farm income
14a Accelerated deprecation on non

13a 13b 13c 14a
: 14b

recovery real propert or 15-year r; 18-year real

E

property., .,.......".," . . . .
b Aetlerated depreciation on leased personal proper or leased recery propert other

~
CI

u

than 15-year or 18-year real propert . . . ' ,

t:

~
Q.

oi

c Depletion (other than oil and gas).. ...,

14c 14d(1)
14d12)1

Qj Q)

d (1) Gross income from oil, gas, and geothermal propertes, (2) Deductions allocable to oil, gas, and geothermal properties
e 11) Qualified investment income included on page i, Form 1065
12) Qualified investment expenses Included on page 1. Form 1065 '
f Other (attach schedule)

)(

I-

..

14e(1) 14el2)

Ó 409.

31,738,390.

14f

.. 15a Interest expense on:

Q) (1) Investment debts incurred before 12117'69 (j 1i (2) Investment debts incurred before 9/11175, but after 12'16/69

'"

.. t:

(3) Investment debts incurred after 9/10/75 . , . ,

6,409.

oi
on

b (1) Investment income included on page 1. Form 1065
(2) Investment expenses included on page 1, Form 1065
c (11 Income from "net lease propert" .

.§
~

ll

E
on

(21 Expenses from "net lease proper"
16a Type of income "__.,,. .__nnnn"__...

oi )(

lI:
'åi

..

en

b Foreign country or U.S. poessioni c Total gross Income from source outside the U.S. (attach schedule) , d Total applicable deductions and losses (attach schedule)-

e Total foreign taxes (check one):~D Paid 0 Accued
f Reduction in taxes available fo credit (attach schedule) .
9 Other. . . . , . . . . . . . .

u.

o

.i

:¡ 17 Other items and amounts not included in lineS 1 through 16g that are required to be

Õ ~:~~~:~~r:~~,;~ pa~n~rs: s~e ,in~tru,cti~n~. Cautio~ ~ach.aS~~u/~~rAtêM.ENT-

*,You are not required to complete lines 1, 6, 9, 12 (see instructions), 16b, and 16c on Schedule K (Form 1065). Completion of these

lines is optional because the amounts which would appear in column b appear elsewhere on Form 1065 or on other IRS forms or IRS schedules attached to Form 1065. Lines 4 and 5 must be completed only if any partner has a specialty allocated capital gain (loss).
(See instructions for line item.!
95-2396893

For Paprwrk Reduction Act Notic, se Form 1065 Ina1ctions Schedule K (Form 1065) 1885

B-7

000275

Case 1:05-cv-00743-FMA
AGRI-CAL VENTURE AS~n~IATf

Document 19-2

Filed 12/07/2007

Page 11 of 16

005

7R78-50
OMB No. 15.,-0! 72

732

Form 4562
Department of tne Trel!ury
lnlern31 RevfDue Service

Depreciation and Amortization
~ See separate instructions.
~ Attach this form to your return.

1985 67
Idlntifying numbe

Name(sl as shown on return

AGR I -CAL VENTURE ASSOC I A TES C/O AMERICAN AGR I-CORP
Business or Bciivity to which this form relates

b 3-0189461

1:..1 Depreciation
Use Part III. Specific Information Concerning Automobiles ana other Listed Propert, for certain transportation equipment (e,9. autos), amusement/receation propert, and computer! peripher al equipment
Section A. _ Election to Expense Recovery Property (Section 179) (b) (0.1
(e) bipBnse deduction

(.) Closs of preperly

-

1

.~.
2 Listed property - Enter total from Part III. Section A. column (h)
3 Total (see instructions for limitations), (Partnerships or S corporations - see the Schedule K and Schedule K-1

Instructions of Form 1065 or 11205),

Section B. - Depreciation of Recovery Property
(b) Diie pi,ced In (c) eo.! or

(.l (135' 01 property

service

other basis

(d)Recovery per lee

(f) Deduclion

4 Accelerated Cost Recovery System lACRSl (see instructons~ For assets arhe, rhan automoiles
and other lisred propert placed in service ONLY during tilX Yeir beginning in 1985
a 3-year propert

b 5-year propert
c ia-year propert

d 15-YBar public utility propert

e lowincoe housing

15-year real propert
9 18-year real propert

(See "Items You Should Note")
5 Listed proper - Enter total from Part ILL, Section A. column (g).

6 ACRS deduction for assets other than automobiles and other listed proper placed in Service prior to 198
(see instructions).

Section C.-Depreciation of Nonrecovery Property

7 Proprty subjec to section 168e)(2) election (see instructions)
8 Other depreciation (see instructions)

Section D. - Summar

9 Total (Add deductions on lines 3 though 8), Enter here and on the Depreciation line of your return (Partnerships and S corporations- Do NOT include any amounts entered on line 3.) .

o.
(f) Amortization

Amortization
la) Oescription 01 property
, (blollf ICQulred

Ie) (ost or other bisls

(d) Coie seuion

lor lhi. ye..

SEE S T A TEMENT

3

253 200

12 660. 12 660.

TotaL. Enter here and on Other Deductions or Other Expenses line of your return
s.. hperl Reduction Act Noti on page 1 of the &8p. Iniitlons. 95-2396893

Form 4562 (19B5t

B-8

000276

Case 1:05-cv-00743-FMA
AGRI-CAL VENTURE AS~nCIATF~

Document 19-2

Filed 12/07/2007

Page 12 of 16

form 4562 (1985) Page 2
Specific Information Concerning Automobiles and Other Listed Property
For property used 50% or less in a trade or business, the section 179 expense deduction is not allowed, For listed property used 50'7 or less in a trade or business. depreciation MUST be computed under the straight-ine method

005

7iì78-50

733

Section A. _ Depreciation of Automobiles and Other Listed Property Isee instructions for limitations)
Ib) Dole
Item'

: (c) Business
use

\a/ Oescríiition

placed in

~o

(Iisl 'lehìcles lirst)

ser..¡c:e

percentage
1'Y:

Idl Cost er olner basis

lei Reco"ry I? ¡Method period IdDepr~~~~~~;n i

(9) Deduction

(h) Secti en
179 expense

1

2
3

4
5

6
7

8

9

Total (Enter here and on Iine 2. page U

Total (Enter here and on line 5. page U

Section B. _ Questions Regarding Use of Automobiles and Other Listed Property
Yes No
To Be Completed by All Filers:

1 Do you have evidence, for all the listed propert above. to suppor the business use percentage claimed?
2 Is the evidence written? .
To Be Compleied by Employers Who Provide Vehicles for use J: Employees;

3 Do you maintain a written poliey statement. meeting the conditions described in the instructions. that prohibits all
personal use of vehicles, including ccmmuting. by your employees? .
If "Yes." do not coplete items 6 through 12 for any of the vehicles furnished to employees that are covered by the

written policy statement 4 Do you maintain a vvitten policy statement meeting the conditions described in the instructions. that prohibits personal use of vehicles, except ccmmuting, by your employees? , If "Yes," you must ccmplete items 6 through 12: (a) only for those vehicles furnished to "disqualified persons" even
if they are covered by the statement; and (b) for all vehicles not covered by the statement

5 Do you provide mere than five vehicles to your employees. or treat all use of vehicles by employees as personal use?
If "Yes," you do not have to answer questions 6 through 12: (a) for iiehicies furnished to other than disqualified persons, or (b) if you treat all use of vehicles by employees as personal use. You must retain the information

received from our em 10 ees re ardin the use of the vehicles.
Section C, - Information Regarding Use of Vehicles
Vehicle 1

Vehicle 2
I i

Vehicle 3

Vehicle 4

Vehicle 5

Vehicle 6

-

6
7

Total miles driven during the year
Total business miles driven during the year,
,

8

Total commuting miles driven during the

i

year. 9 Total other personal (non-commuting) miles driven,
10 Was the vehicle available for personal use
during ofduty hours?

!

Yes i No

Yes

No

Yes

No

Yes

No

Yes

No

Yes i No

H

Is another vehicle aii

ail

able forilersonal

I

use?
12 Was the vehicle used primarily by a

disqualified person?

95-2396893

B-9

000277

Case 1:05-cv-00743-FMA

Document 19-2

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Page 13 of 16

33-0189461
AGR i-cAL VENTURE ASSOC IA TES

005

7878-50
PAGE

i

FEDERAL PAR TNERSH IPS T A TEMENTS - YEAR END I NG 11/30/86

STATEMENT 1 - ORDINARY INCOME FROM OTHER PARTNERSHIPS, SYNDICATES, ETC.
PARTNERSHIP NAME
RANCHO MADERA PARTNERS
I D NUMBER
AMOUNT

RANCHO CALIFORNIA PTRS-I I AGRI-CAL FARMING J/V

33-0176317 33-0175595

-300,000 -1,009,608

TOT AL ORDI NARY 1 NCOME FROM OTHER PAR TNERSH IPS

- --- ----- --- - ----- --- ----

-1,309,608

-- - -- - - ----- ---- - --- ----------- ----- - ------- -- ------- ---- - ----- -- ----- - -- -STATEMENT 2 - OTHER FARM EXPENSES
DESCRIPTION
CUSTOM SERVI CES
MANAGEMENT
AMOUNT

OVERHEAD PLANT I NG

GROUND PREP

IRRIGATION
CUL TURAL COSTS LI NERS

-------------

3,987,250 1,559,382 4,402,372 6,077,440 1,204,467 4,084,614

53,295 104,045

TOTAL OTHER EXPENSES

21,472,865 -------------

B-10

STATEMENTS 1 - 2

000278

Case 1:05-cv-00743-FMA

Document 19-2

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Page 14 of 16

33-01894ól
AGR I-CAL VENTURE ASSOC I ATE 5

005

7878-50
PAGE
2

FEDERAL PARTNERSH IPS T A TEMENTS - YEAR END I NG 11/30/86
STATEMENT

3 - AMORTIZATION
AMORTIZATION CALCULATION
DATE

DESc

ACQUIRED

CDS T OR PR I OR YEARS MEBASIS AMORTIZATION THOD YRS PCT

CURRENT

AMORTIZATION

ORGANIZATION COSTS

10/07/86

TOT ALS

------------- ------------o 253,200 -------------- --------------

253,200

SL

5

12,660 12,660 --------------

-- - -- - -- ---- ---------- - -- - --- ----------- -- - --- - -- ------- - -- ---- - ------ ----STATEMENT 4 - OTHER DEDUCTIONS
PARTNERSH I P MANAGEMENT ACCOUNT I NG MI SC

611,750 10,000

AMORTIZATION SEE STATEMENT 3

12,660
634,885 -------------

475

TOT AL OTHER DEDUCT IONS

-- -- - -- -- --- ----- ----------- --- ---- ------ - --- ---------- --- ---- ---- -- --- - --STATEMENT 5 - OTHER CURRENT ASSETS
BEGINNING OF TAXABLE YEAR
DEPOS ITS

END OF TAXABLE YEAR

-- ------------------------- ----- ------ ---- - --- --- ------- - --------- ---- ----- - --- --o

27,550

TOTAL OTHER CURRENT ASSETS

27,550

B-11

,TATFMFNTS 3 - 5

000279

Case 1:05-cv-00743-FMA

Document 19-2

Filed 12/07/2007

Page 15 of 16

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005

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FEDERAL PARTNERSHIP STATEMENTS - YEAR ENDING 11/30/86
S T A TEMENT 6 - OTHER I NVES TMENTS

PAGE

3

BEGINNING OF TAXABLE YEAR
S T AUBACH

END OF TAXABLE YEAR

RANCHO CALI F- II

1,248,800 -150,000

AGRI-CAL FARMING J.V.
RANCHO MADERA PARTNERS
o

--- --- - - -- - --- ---- -- ------ - ---

865,294 275,000

TOTAL OTHER INVESTMENTS

---- ------ ----- --- - - --- -- ----------- ---- ------- ---- - ---

2,239,094

- ------ ---- --- ----------- ------------ ---- - ----- ------------------- --------S T A TEMENT 7 - OTHER ASSETS

BEGINNING OF TAXABLE YEAR
SYNDICATION COSTS

END OF TAXABLE YEAR

------ ------- -- --- -----------o ------------- -- ----- --------- ----- --- ---- ------ --- - --- - ----

101,600

TOTAL OTHER ASSETS

101,600

-- ---- --------- ---------------------------------------------------- -------STATEMENT 8 - OTHER SCHEDULE K, LINE 17, OTHER ITEMS
OTHER ITEMS
ITEM
AMOUNT

CAUTION : ALTHOUGH LINE 1 SHOWS A LOSS, YOU MAY NOT HAVE SUFFICIENT AT-RISK BASIS TO DEDUCT THE ENTI-RE AMOUNT - CONSULT YOUR TAX ADVISOR

B-12

STATEMENTS 6 - 8

000280

Case 1:05-cv-00743-FMA

Document 19-2

Filed 12/07/2007

Page 16 of 16

33-0189461
AGR I -CAL VENTURE ASSO C I A TES

005

1818-50
PAGE

FEDERAL PARTNERSHIP STATEMENTS - YEAR ENDING 11/30/86
S T A TEMENT

4

9 - FOOTNOTES

THE PARTNERSHIP HAS ELECTED A NOVEMBER 30 YEAR END BECAUSE THE TAX YEAR is THE SAME AS ALL OF ITS PRINCIPAL PARTNERS PURSUANT TO IRC 106 NOT REQUIRING PRIOR IRS APPROVAL

B-13

STATEMENT 9

000281