649 F.2d 1128 (5th Cir. 1981), 79-3888, Ingram v. City of Dallas Dept. of Housing & Urban Rehabilitation

Docket Nº:79-3888.
Citation:649 F.2d 1128
Party Name:Joerene INGRAM and Laurel A. Bates, Trustee, Plaintiffs-Appellants, v. CITY OF DALLAS DEPARTMENT OF HOUSING & URBAN REHABILITATION, et al., Defendants, United States of America (Internal Revenue Service), Defendant-Appellee.
Case Date:July 06, 1981
Court:United States Courts of Appeals, Court of Appeals for the Fifth Circuit
 
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Page 1128

649 F.2d 1128 (5th Cir. 1981)

Joerene INGRAM and Laurel A. Bates, Trustee, Plaintiffs-Appellants,

v.

CITY OF DALLAS DEPARTMENT OF HOUSING & URBAN REHABILITATION,

et al., Defendants,

United States of America (Internal Revenue Service),

Defendant-Appellee.

No. 79-3888.

Unit A

United States Court of Appeals, Fifth Circuit

July 6, 1981

Rehearing and Rehearing En Banc Denied Sept. 28, 1981.

Page 1129

L. Lynn Elliott, Charles A. Thompson, Dallas, Tex., for plaintiffs-appellants.

M. Carr Ferguson, Asst. Atty. Gen., Gilbert E. Andrews, Chief, Appellate Section, William S. Estabrook, Wynette J. Hewett, Attys., Tax Div., Dept. of Justice, Washington, D. C. for defendant-appellee.

Appeal from the United States District Court for the Northern District of Texas.

Before CHARLES CLARK, TATE and WILLIAMS, Circuit Judges.

JERRE S. WILLIAMS, Circuit Judge:

This case involves an appeal from the summary judgment granted the federal government in the government's undertaking to foreclose its federal tax liens on the Texas homestead of one of appellants, Joerene Ingram, and her former spouse, Donald Ingram, for the sole tax liability of Donald Ingram relating to one federal tax and the joint tax liability of Donald and Joerene Ingram relating to another federal tax.

Page 1130

During their marriage, Donald and Joerene Ingram acquired, as community property, a residence located in Dallas, Texas. They claimed this property as their homestead under Texas law. See Tex.Const. Art. XVI, §§ 50-52.

In 1972 and 1973, assessments were made under § 6672 of the Internal Revenue Code of 1954, 26 U.S.C. § 6672 (1976), against Donald Ingram, President of Dallas Auto Damage Appraisers, Inc. (DADA), as the person responsible for the collection and payment of social security and withholding taxes from the wages of the employees of DADA. The assessments related to unpaid taxes withheld from wages of employees of DADA from the first quarter of 1971 through the second quarter of 1972. After payments on account of these liabilities were made, there remains unpaid $9,330.51, plus interest.

In 1973, an assessment was made in the amount of $283.33, plus interest, against both Donald Ingram and Joerene Ingram relating to their unpaid income tax for the taxable year 1971. This amount remains unpaid at present.

On March 19, 1975, around which time the Ingrams were seeking a divorce, the Ingram's residence was destroyed by fire. The home was insured and the proceeds of the policy, approximately $50,000, were deposited into the registry of a Texas Domestic Relations Court. On September 3, 1975, the Ingrams obtained a divorce. Joerene Ingram was awarded custody of the two children of the marriage. In connection with the divorce, the Ingrams entered into a property settlement agreement in which they agreed to the disposition of their community property, including the real property claimed as their homestead. After the payment of sums previously approved by the state Domestic Relations Court, the Ingrams agreed to divide the balance of the proceeds equally. They further agreed that Donald Ingram would convey his interest in the real property to Joerene Ingram in exchange for $1,500.00, to be paid from the proceeds of the sale of the property. With respect to their taxes, the Ingrams agreed that they would file separate income tax returns for the taxable year 1974, that Donald Ingram would pay any income tax on joint income for 1974, and that he would "hold Wife harmless for any deficiencies or assessments for the years 1971 through 1973."

The real...

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