United States v. Meyer
| Decision Date | 01 November 1961 |
| Docket Number | Civ. No. 2904. |
| Citation | 199 F. Supp. 508 |
| Parties | UNITED STATES of America, Plaintiff, v. Paul MEYER, Harry T. Hartman, and Anna L. Hartman, Defendants. |
| Court | U.S. District Court — Southern District of Illinois |
Edward R. Phelps, U. S. Atty., Springfield, Illinois, Lorence L. Bravenec, Atty. for Justice Dept., Washington, D. C., for plaintiff.
Mudge & Mudge, Edwardsville, Ill., for Paul Meyer.
Harry T. Hartman and Anna L. Hartman not represented.
This suit is brought by the United States to foreclose an income tax lien. The Complaint alleges that plaintiff seeks to foreclose federal tax liens on five tracts of real estate, and is brought pursuant to Sections 7401 and 7403 of the Internal Revenue Code of 1954, 26 U.S.C. §§ 7401, 7403. Jurisdiction is based under Title 28 U.S.C. §§ 1340 and 1345, and under Section 7402(a) of the Internal Revenue Code of 1954, 26 U.S.C. § 7402(a).
The further allegations of the Complaint are that the District Director of Internal Revenue on April 8, 1955, made an assessment of income tax deficiencies with penalties and interest for the year 1946 in the amount of $3,789.20 against Harry T. Hartman who was given notice of the assessment on April 19, 1955, at which time demand for payment was made, and on June 28, 1955, filed notice of lien with the Recorder of Deeds of Madison County, Illinois. Part of the demand for this income tax year was paid, leaving a lien balance of $2,099.54. Similar assessments were made and notice of lien filed on the same dates for the year, income tax year of 1947, in the amount of $16,101.38 against Harry T. Hartman; for the year 1948, in the amount of $6,329.46 against Harry T. Hartman; and for the year 1950, in the amount of $11,331.47 against Harry T. Hartman and Anna L. Hartman.
The further allegation is that the federal tax assessments are prior liens on five tracts of real estate which were owned by Harry T. Hartman and Anna L. Hartman until October 24, 1957, as against the rights of defendant, Paul Meyer. The veracity of this allegation depends on the construction of real estate tax laws of Illinois, because the further allegation is that the real estate involved was sold on January 18, 1955 for delinquency in general property taxes of Illinois, and its various political subdivisions of government such as the City of Venice, Illinois, school districts, commissioner of highways, and Madison County, Illinois, to defendant Paul Meyer, who, at the time of purchase at the sale, received certificates of purchase; that after the two-year redemption period granted by the Constitution and Statutes of Illinois, to Harry T. Hartman and Anna L. Hartman, had expired, tax deeds were issued to the defendant Paul Meyer. The prayer is for an adjudication, (1) that the defendant Harry T. Hartman is liable to the United States for unpaid taxes with interest and penalties assessed against him in the amount of $35,861.85 plus interest, as provided by law, and that the defendant Anna L. Hartman is jointly and severally liable to the United States for unpaid taxes with interest and penalties assessed against her in the amount of $11,331.47, plus interest as provided by law; (2) that the Court adjudicate all matters involved herein and finally determine the merits and priority of all claims to and liens upon the real estate involved, including the liens of the United States, for unpaid taxes, (3) that the Court find, determine and adjudge that the United States has valid and first liens in the total amount of $35,861.85 plus interest, (4) that the Court order the foreclosure of the tax liens on the real estate and order the distribution of the proceeds of sale first to the United States in satisfaction of its liens, and (5) that plaintiff be granted its costs and such other and further relief as to the Court seems proper.
The defendants, Harry T. Hartman and Anna L. Hartman, have been defaulted. The defendant Paul Meyer filed a sworn motion to dismiss the Complaint in which he asserts that his rights are superior to the United States in, (1) that he became a purchaser for value of the real estate in question on January 18, 1955, at which time he purchased the property at the tax sale prior to the time the assessment for income tax deficiency against the Hartman's by the District Director of Internal Revenue, (2) that the Complaint fails to allege a cause of action against defendant Paul Meyer in that it fails to assert a superior interest to that of Paul Meyer, for the reason that Paul Meyer purchased the property for delinquency in general property taxes on January 18, 1955, and three months before the District Director of Internal Revenue made any assessment for income tax deficiency against the then owner of the property, the Hartman's, by reason of which the interest of the United States in and to the described property by reason of the assessed income tax deficiency, became no greater than the interest of the Hartman's, which, under the law of the State of Illinois, was a right to redeem from the State tax sale held on January 18, 1955, and the Complaint showing on its face that the Hartman's and the United States, having failed to redeem within the two-year statutory and Illinois constitutional period, defendant Paul Meyer became the owner of the real estate described in the Complaint, and (3), that the Complaint, in so far as defendant Paul Meyer and his interest in the real estate is concerned, fails to allege facts which, if true, would establish a lien in favor of the United States under the provisions of Section 6321 and 6323 of the Internal Revenue Code of 1954, 26 U.S.C.A. §§ 6321, 6323, and (4), that by reason thereof the Complaint should be dismissed as to defendant Paul Meyer.
This defendant attaches to his sworn motion a judgment of the County Court of Madison County, Illinois, in which the County Treasurer of Madison County, Illinois, certifies that various pieces of the real estate described in the Complaint are included in the judgment. The judgment is as follows:
This is the judgment under which the lands, lots or parts of lots described in the Complaint were sold to defendant Paul Meyer on January 18, 1955, and under which certificate or certificates of purchase were issued on said date, and which certificates ripened into tax deeds on October 24, 1957, in accordance with the procedures provided for by Illinois Revised Statutes, 1953, Chapt. 120, § 747.
The plaintiff made the assessments to the taxpayers, the Hartmans, on April 19, 1955, and on June 28, 1955 filed notices of liens for the assessed federal tax liabilities with the Recorder of Deeds of Madison County, Illinois, at his office in Edwardsville, Illinois, in accordance with Illinois Revised Statutes, 1953, Chapt. 82, §§ 66 through 70, entitled "An Act in relation to liens for internal revenue taxes payable to the United States of America."
Section 66 provides:
Section 67 provides:
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United States v. United States Chain Company, 57 C 2050.
...to the real estate after the redemption period expired, and this it did. (See stipulation, par. 4). At this juncture, United States v. Meyer, 199 F.Supp. 508 (D.C.Ill.1961), cited to me by Bond, deserves some attention. The underlying Madison County Court judgment was made part of the recor......
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...purchaser; (g) that the sale was conducted in the manner required by law. Ill.Rev.Stat.1967, Ch. 120, Sec. 751; United States v. Meyer, D.C., 199 F.Supp. 508, 513, 518 (1961). No deed having been alleged by plaintiff, and defendant having admitted only '(e)' above, the trial court could not......