United States District Court, E.D. Tennessee, Knoxville
S. MATTICE, JR., UNITED STATES DISTRICT JUDGE.
4, 2017, United States Magistrate Judge Bruce Guyton filed
his Report and Recommendation (Doc. 12) pursuant to 28 U.S.C.
§ 636(b)(1) and Federal Rule of Civil Procedure 72(b).
Magistrate Judge Guyton recommends that Plaintiffs Motion for
Default Judgment and Permanent Injunction (Doc. 7) be
granted. Defendant has filed no objections to the Magistrate
Judge's Report and Recommendation. Nevertheless, the
Court has conducted and reviewed the Report and
Recommendation, as well as the record, and it agrees with
Magistrate Judge Guyton's well-reasoned conclusions.
the Court ACCEPTS and ADOPTS Magistrate Judge Guyton's
findings of fact, conclusions of law, and recommendations
pursuant to § 636(b)(1) and Rule 72(b). Plaintiffs
Motion for Default Judgment and Permanent Injunction (Doc. 7)
is hereby GRANTED, and the Court ORDERS as follows:
That Defendants Hall Law Group P.C. and Andrew Hall are
enjoined from further accruing unpaid federal employment and
unemployment tax liabilities.
This injunction order authorizes enforceable injunctive
relief and, if any provision of this permanent injunction is
violated, the injunction can be enforced by the United States
or the Court through the mechanisms set forth below.
injunction shall issue as follows from the date of this
a. Parties Covered by Injunction: This injunction binds Hall
Law Group P.C. and Andrew Hall, as well as any agents,
employees, and persons in concert or participation with them,
in whatever form they continue to carry on their business.
b. Withholding Requirement: Defendant Hall Law Group P.C.
shall withhold federal income and FICA taxes from the wages
of its employees when those wages are paid, shall keep the
withheld funds in a bank account separate from any operating
account or other accounts, and shall pay the withheld taxes
to the Internal Revenue Service as they become due and
c. Deposit Requirements: In accordance with federal deposit
regulations, Case 3:i6-cv-00574-HSM-HBG Document 7-3 Filed
02/01/17 Page 4 of 6 PagelD #: 71 5 Hall Law Group shall make
timely deposits of withheld federal income and FICA taxes and
its share of FICA and FUTA taxes in an appropriate federal
depository i bank each quarter, in accordance with the
federal deposit regulations.
d. Reporting Requirements: No later than the 20th day of each
month, Hall Law Group P.C. shall sign and deliver affidavits
or other proof to the Internal Revenue Service, c/o Jeffrey
Robards, at 801 Broadway, Nashville, Tennessee 37203 showing
that the requisite withheld federal income taxes, FICA taxes
(both the employees' withheld portion and the
employer's portion), and unemployment tax deposits were
e. Return Requirements: Hall Law Group P.C. shall timely file
with the IRS its employment (Form 941) and unemployment (Form
940) tax returns. Each return shall be considered to be
timely filed if it is filed before the date it is due or
within three days after the return is due. Hall Law Group
P.C. shall pay any balance due on those returns upon filing.
f. Transfer Prohibition: Defendants are prohibited after the
date of this permanent injunction from assigning any property
or making any disbursements until all income taxes and FICA
taxes required to be withheld from employees' wages
(together with the employer's liability for FICA taxes
and FUTA taxes) are in fact paid to the IRS.
g. Quarterly Statement Requirements: Hall Law Group P.C.
shall provide a quarterly statement of income and expenses
and to timely make a quarterly estimated tax payment of
personal income taxes to the Internal Case
3:i6-cv-00574-HSM-HBG Document 7-3 Filed 02/01/17 Page 5 of 6
PagelD #: 72 6 Revenue Service at ...