Adkerson

Adkerson v. United States

Good Law

168 F. Supp. 2d 1142·2001 WL 1172780·88 A.F.T.R.2d (RIA) 5440·2001 U.S. Dist. LEXIS 9787

United States District Court, Northern District of CaliforniaJune 13, 2001C-95-4229 MHP, C-95-4262 MHPCalifornia3,362 words

Opinion

Patel, J.

MEMORANDUM AND ORDER

In 1995, plaintiffs Leonard Adkerson, Merrilyn Barker and others (collectively “plaintiffs”), brought these actions against defendant United States of America (“government”) alleging that the government collected tax penalties from plaintiffs under 26 U.S.C. § 6621 (c) without proper authority. Now before the court is the government’s motion for summary judgment. Having considered the parties’ arguments and submissions, and for the reasons set forth below, the court enters the following memorandum and order.

BACKGROUND

Gold Depository and Loan Company, Inc. (“GD & L”) devised and operated a tax shelter called the Dry Cargo Marine Container Purchase Program (“GD & L program”) under which a typical investor might buy $100,000 worth of marine cargo containers with just $4,000 down. GD & L arranged for financing of the unpaid balance. GD & L advised investors that they could then take an investment tax credit of 10% or $10,000, as well as a depreciation deduction of $15,000, on their tax return for the year of investment.

As described in the court’s memorandum and order of July 22, 1996 denying the government’s motion to dismiss for failure to state a claim,…

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