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US govt, Rota Coconut Village Hotel eye early settlement
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Posted on Dec 21 2011
By Ferdie de la Torre
Reporter
Reporter
The U.S. government and the Rota Coconut Village Hotel are in the middle of talks to settle a lawsuit against the hotel for alleged federal tax liabilities amounting to $148,347.65.
With settlement talks ongoing, both parties, through their respective lawyers, have agreed to a court order to extend the time for the hotel to file its answer to the lawsuit to Feb. 29, 2012.
In their agreement, U.S. Department of Justice’s Tax Division trial attorney Lauren M. Castaldi and Rota Coconut Village Hotel’s counsel, Gregory J. Koebel, disclosed that they discussed the possibility of an early settlement and agreed to a 60-day extension of deadline for the hotel’s response to the suit.
Castaldi and Koebel said they are in the process of obtaining information and reviewing documents as part of their settlement negotiations.
The lawyers said it is anticipated that the U.S. government will need to send someone to Rota to personally inspect the hotel.
In the lawsuit filed in September, Castaldi stated that timely notice of federal income tax assessments was given and timely demand for payment was made of upon the Rota Coconut Village Hotel.
Despite the notice and demand for payment of the assessments, Castaldi said that the hotel “has neglected, refused, or failed to pay such assessments.”
As of Sept. 26, 2011, he said, there remains due and owing to the U.S. the sum of $148,347.65, plus interest and other statutory additions.
U.S. District Court for the NMI Chief Judge Ramona V. Manglona recused herself from the case. Manglona said that persons within the third degree of relationship to her spouse, associate justice John A. Manglona, are minority shareholders of the hotel.
