946 F.3d 1234 (10th Cir. 2020), 18-4166, Arlin Geophysical Co. v. United States
|Citation:||946 F.3d 1234|
|Opinion Judge:||LUCERO, Circuit Judge.|
|Party Name:||ARLIN GEOPHYSICAL COMPANY; Laura Olson, Plaintiffs, v. UNITED STATES of America, Defendant-Crossclaim Plaintiff-Appellee, v. Debra Green Udy; Claudia Green Burton; Rebecca Green Eggers; Bank of America Home Loans; Cipra Non-revocable Trust; Nancy Kimmerly; Mortgage Electronic Registration Systems; New Century Mortgage; Barney J. Ng; Securitized...|
|Attorney:||David E. Ross II, Park City, Utah, for Counter Defendant-Appellant. Paul A. Allulis, Attorney, Department of Justice, Tax Division, Washington, D.C. (Richard E. Zuckerman, Principal Deputy Assistant Attorney General, Bruce R. Ellisen, Attorney, with him on the briefs), for Defendant-Crossclaim Pl...|
|Judge Panel:||Before LUCERO, HOLMES, and MORITZ, Circuit Judges.|
|Case Date:||January 14, 2020|
|Court:||United States Courts of Appeals, Court of Appeals for the Tenth Circuit|
Appeal from the United States District Court for the District of Utah (D.C. No. 2:08-CV-00414-DN)
David E. Ross II, Park City, Utah, for Counter Defendant-Appellant.
Paul A. Allulis, Attorney, Department of Justice, Tax Division, Washington, D.C. (Richard E. Zuckerman, Principal Deputy Assistant Attorney General, Bruce R. Ellisen, Attorney, with him on the briefs), for Defendant-Crossclaim Plaintiff-Appellee.
Before LUCERO, HOLMES, and MORITZ, Circuit Judges.
LUCERO, Circuit Judge.
We consider the existence of redemption rights in actions under 26 U.S.C. § 7403 to enforce federal tax liens. After John Worthen amassed over eighteen million dollars in unpaid tax liabilities, the federal government placed liens on properties it claimed belonged to his alter egos or nominees. Following a court-ordered sale of the properties, Worthen sought to exercise a statutory right to redeem under Utah state law. The district court concluded there are no redemption rights following sales under § 7403. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm. Neither § 7403 nor 28 U.S.C. § 2001, which governs the sale of realty under court order, explicitly provides for redemption rights. Moreover, federal tax proceedings provide sufficient protection for taxpayers and third parties.
Worthen owes the United States more than eighteen million dollars in unpaid taxes. In 2000, the government filed a Notice of Federal Tax Lien concerning Worthens outstanding tax liability. In 2008, the Internal Revenue Service ("IRS") filed additional Notices of Tax Lien against fifteen properties that it claimed were owned by Worthens nominees or alter egos. Laura Olson, who is Worthens wife, and Arlin Geophysical Company, which is owned by Worthen and Olson, brought an action to quiet title to these properties. Naming counterclaim-defendants with potential interests in the properties, the government filed a counterclaim seeking to reduce to judgment its tax assessments against Worthen and to foreclose the liens. The district court issued orders addressing the claims regarding thirteen of the properties, ruling that Worthen is indebted to the government in the amount of eighteen million dollars, plus interest, for his federal income tax liabilities. At issue in this case are claims to the two remaining properties, Properties 14 and 15,1 by (1) the government; (2) Fujilyte, a company owned by Worthen that held title to Properties 14 and 15; (3) John Greens heirs, who purported to hold a trust deed to the properties; and (4) Stephen Homer, who purported to be a successor in interest to Greens trust deed.
Concluding in part that Fujilyte, as Worthens nominee, holds title to Properties 14 and 15, the district court granted summary judgment to the government regarding the primacy of its claim over those of Homer and Greens heirs. Subsequently, the court granted final judgment for the government and ordered the properties sold. Worthen and Fujilyte appealed. This court vacated the district courts judgment and order of sale and remanded for further proceedings. Arlin Geophysical Co. v. United States, 696 Fed.Appx. 362, 371 (10th Cir. 2017) (unpublished). Because Worthen and Fujilyte were not parties to the summary judgment proceeding, they had not been given "an adequate opportunity to respond to the...
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