STIPULATION AND ORDER FOR THIS COURT TO ADOPT THE FINDINGS AND RECOMMENDATIONS FROM CASE NO. 2:09-MC-00052-FCD-DAD AND APPLY THEM IN THIS CASE

JOHN A. MENDEZ, District Judge.

Petitioner Stephen J. Dougan ("Dougan") and Respondent the United States of America ("Respondent"), through counsel, hereby stipulate and agree as follows:

RECITALS

WHEREAS, in 2009 Dougan was notified by the Internal Revenue Service ("IRS") that it was auditing his federal tax returns for calendar years 2006 and 2007;

WHEREAS, on or about May 13, 2009, the IRS issued a Summons to third party First Northern Bank seeking Dougan's bank records which records identified his clients;

WHEREAS, Dougan hereby represents that, upon notification of the IRS' Summons, Dougan consulted with Ethics counsel to ascertain his duties and obligations to protect his clients' identities and personal information as required by California Rules of Professional Conduct, Rule 3-100 and Business & Professions Code section 6068(e);

WHEREAS, Dougan filed on or about June 2, 2009 a Petition to Quash the IRS Summons in this Court pursuant to 26 U.S.C. section 7609(b)(2), case number No: 2:09-mc-00052-FCD-DAD ("Dougan I"). The Petition sought to quash the Summons on the grounds of attorney-client privilege, privacy rights and interests, Dougan's professional obligations to his clients and on the grounds that the names and identities of Dougan's clients as identified in the documents subject to the Summons failed to meet the standards of relevancy under 26 U.S.C. section 7602;

WHEREAS, Dougan hereby represents that he filed the Petition in Dougan I based on his good faith belief and understanding of his professional duties to his clients under applicable law and on advice of Ethics counsel;

WHEREAS, Respondent filed an Opposition to the Petition in Dougan I on July 2, 2009 and Dougan filed a Reply thereafter;

WHEREAS, in 2011 Dougan was notified by the IRS that it was auditing his federal tax returns for calendar years 2008 and 2009;

WHEREAS, on or about June 30, 2011, the IRS issued a Summons to third party First Northern Bank, seeking Dougan's bank records which records identified his clients;

WHEREAS, on or about July 20, 2011, Dougan filed the Petition to Quash the IRS Summons initiating this case, also pursuant to 26 U.S.C. section 7609(b)(2), ("Dougan II"). The Petition sought to quash the Summons on the grounds of attorney-client privilege, privacy rights and interests, Dougan's professional obligations to his clients and on the grounds that the names and identities of Dougan's clients as identified in the documents subject to the Summons failed to meet the standards of relevancy under 26 U.S.C. section 7602;

WHEREAS, this Court issued Orders of Related Cases in both Dougan I and Dougan II on July 27, 2011;

WHEREAS, United States Magistrate Judge Drozd issued Findings and Recommendations in Dougan I on August 15, 2011, recommending that Dougan's Petition to Quash IRS Summons in Dougan I be denied in its entirety and the action closed. A true and correct copy of the Findings and Recommendations is attached hereto as Exhibit A;

WHEREAS, no objections to the Findings and Recommendations having been filed in Dougan I, this Court adopted them in full by Order dated September 21, 2011, denying Dougan's June 2, 2009 Petition to Quash IRS Summons and ordering the Clerk to close the case. A true and correct copy of said Order is attached hereto as Exhibit B; and

WHEREAS, Judgment was entered in Dougan I on September 21, 2011 in accordance with the Court's Order filed September 21, 2011. A true and correct copy of the Judgment is attached hereto as Exhibit C:

WHEREFORE, the parties agree as follows:

STIPULATION

This case, and the Petition seeking to quash the IRS's 2011 Summons issued to First Northern Bank, involve virtually identical contentions, issues and law as Dougan I.

Dougan was fully represented and had a full and fair opportunity to litigate in Dougan I.

The Findings and Recommendations issued and adopted in Dougan I shall apply with equal force and effect to this case.

Wherefore, the parties respectfully request that the Court adopt and apply the Findings and Recommendations entered in Dougan I in full with respect to Dougan's July 20, 2011 Petition to Quash IRS Summons in this case (Doc. No. 1) and issue an Order and Judgment as appropriate in conformity therewith.

Respectfully submitted this 3rd day of October, 2011.

IT IS SO ORDERED.