United States allowed to foreclose against real property

The United States previously obtained judgment against an individual who failed to pay taxes for 11 years. It now moved to foreclose real property owned by the defendant. The court granted the United States’ motion for summary judgment and ordered foreclosure.

Background

This case arises from the United States’ efforts to collect 11 years of unpaid taxes, penalties, and interest from Lewis Carter. On March 16, 2015, the United States filed a Complaint to reduce to judgment tax assessments for the tax years 1997-2000, 2002-2006, and 2008-2009. On Dec. 31, 2015, the Court granted summary judgment for the United States on Carter’s tax liabilities.

On Aug. 15, 2016, the United States filed the instant Complaint, seeking to “foreclose the federal tax liens against certain real properties with respect to Lewis Carter’s tax and penalty liabilities” for the tax years 1997-2000, 2002-2006, and 2008-2009. The United States joined as defendants Mary Carter, Lewis’s brother (Bobby Carter), and the Virginia Department of Taxation because it believed they may have or claim an interest in the properties. The Carter defendants filed various motions to dismiss, and then filed oppositions to the United States’ motion for summary judgment.

On Sept. 18, 2017, the court denied the four motions to dismiss. The court now turns to the United States’ motion for summary judgment

Analysis

The United States has established federal tax liens arising out of Lewis Carter’s unpaid federal income tax liabilities. Pursuant to 26 U.S.C. § 6321, those liens attached at the time of their assessment to the real property Lewis Carter owned at the time and to all real property he has acquired since. Under 26 U.S.C. § 7403, the United States is entitled to foreclose its liens upon Lewis Carter’s property because he has refused or neglected to pay his outstanding tax liability. Lewis Carter presents no evidence establishing a genuine dispute of material fact regarding the United States’ entitlement to foreclose on his tax liability. The Court will grant summary judgment against Lewis Carter in favor of the United States.

None of the exhibits submitted by Lewis Carter creates a genuine dispute of material fact regarding whether the United States is entitled to foreclose on Lewis Carter’s properties, or identify specific facts as yet undiscovered that could aid Lewis Carter in opposing summary judgment.

Motion granted.

United States v. Carter, Case No. 16-cv-674, Sept. 12, 2018. EDVA at Richmond (Lauck). VLW No. 018-3-379. 49 pp.