999 F.2d 1255 (8th Cir. 1993), 93-1449, United States v. Gerads

• Citation: 999 F.2d 1255
• Party Name: UNITED STATES of America, Appellee, v. Gregory L. GERADS, individually; Dorothea A. Gerads, individually, Appellants, Gregory L. Gerads, as Trustee for Rocky Hills; Dorothea A. Gerads; Ruth M. Bloch; Jeffrey J. Gerads; Beth M. Gerads; Peggy E. Gerads, Defendants.
• Case Date: July 26, 1993
• Court: United States Courts of Appeals, U.S. Court of Appeals — Eighth Circuit

Page 1255

999 F.2d 1255 (8th Cir. 1993)

UNITED STATES of America, Appellee,

v.

Gregory L. GERADS, individually; Dorothea A. Gerads,

individually, Appellants,

Gregory L. Gerads, as Trustee for Rocky Hills; Dorothea A.

Gerads; Ruth M. Bloch; Jeffrey J. Gerads; Beth

M. Gerads; Peggy E. Gerads, Defendants.

No. 93-1449.

United States Court of Appeals, Eighth Circuit

July 26, 1993

Submitted June 29, 1993.

Rehearing Denied Aug. 30, 1993.

Gregory L. Gerads and Dorothea A. Gerads, Freeport, MN, for appellants.

Page 1256

Gary R. Allen, Dept. of Justice, Washington, DC, for appellee.

Before FAGG, BEAM, HANSEN, Circuit Judges.

PER CURIAM.

Gregory L. Gerads and Dorothea A. Gerads, husband and wife (appellants), appeal from the district court's ¹ orders granting the government's motions for summary judgment in this action to recover back income taxes. We affirm.

Appellants are tax protestors who have refused to file or pay federal income taxes since 1976. They reside on a tract of farmland in Freeport, Minnesota, in Stearns County. On December 5, 1988, the IRS sent appellants Notice of Deficiency letters for the tax years 1976 through 1983. On April 18, 1989, the government assessed federal income taxes, additions to tax, and statutory interest against appellants for these tax years. The government filed notice of the assessments and demanded payment. Appellants did not contest the deficiencies, and, other than Gregory's payment of $449.63, they have not attempted to satisfy their tax liability. The government then filed notices of federal tax lien against the farmland with the Stearns County Recorder in the names of appellants, Rocky Hills, as nominee of Gregory L. Gerads, and Sunrise Living Trust, as nominee of both appellants. On July 24, 1991, the government commenced this action, under 26 U.S.C. §§ 7401-03, to (1) reduce to judgment the income taxes it had assessed against appellants for the years 1976 through 1983; (2) set aside as fraudulent appellants' purported conveyance of the farmland to the two "trusts"; (3) quiet title to the property; and (4) eject any and all inhabitants from the property to facilitate foreclosure of its tax liens. Thereafter, the government moved for summary judgment. The district court granted the motions and the relief the government requested. This appeal followed.

The district court correctly granted the government's motions for summary judgment because appellants did not contest the factual bases for the assessments and because their legal arguments attacking the court's jurisdiction and the validity of the assessments...