United States v. Williams

• Decision Date: 28 September 2012
• Docket Number: 4:11-cv-84-RLY-DML
• Parties: UNITED STATES OF AMERICA, v. DENNIS R. WILLIAMS, et al., Defendant.
• Court: U.S. District Court — Southern District of Indiana

UNITED STATES OF AMERICA, v. DENNIS R. WILLIAMS, et al., Defendant.

4:11-cv-84-RLY-DML

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA

Dated: September 28, 2012

Entry Granting Partial Motion for Summary Judgment

The plaintiff United States seeks a judgment that defendant Dennis R. Williams ("Mr. Williams") is liable to it based on unpaid federal income taxes, penalties, and interest for the taxable years 1996 through 2005 in the amount of $1,336,943.80,¹ plus interest and statutory additions accruing from and after January 19, 2012. In addition, the United States seeks a judgment declaring that it has valid and subsisting tax liens on all property and rights to property belonging to Mr. Williams, including his interest in the real property located at 3914 Utica Pike, Jeffersonville, Indiana (the "Utica Pike Property") described below, and that those liens be enforced through a judicial sale of the subject property, with the distribution of the net sale proceeds to be determined by further order of this Court.

The United States has also named Leslie Ann Williams, the Indiana Department of Revenue, and Clark County, Indiana, as defendants because they each have or may claim an interest in the subject property.

Defendants Mr. Williams and Leslie Ann Williams (the "defendants") object to the United States' motion on the basis that there is a lack of evidence of compliance with 26 U.S.C. §§ 6213(a) and 7401, that the tax assessment numbers are arbitrary, and that the United States' motion is premature. The Indiana Department of Revenue and Clark County, Indiana, do not object to the United States' motion.

This court has subject matter jurisdiction over the claims presented in this action. The United States is seeking unpaid taxes. Since the United States is a party to the litigation, this court has jurisdiction pursuant to 28 U.S.C. §§ 1345, 1346(e), and 26 U.S.C. § 7402(a).

Summary Judgment Standard

AAs stated by the Supreme Court, summary judgment is not a disfavored procedural shortcut, but rather is an integral part of the federal rules as a whole, which are designed to secure the just, speedy, and inexpensive determination of every action.@ Harney v. Speedway SuperAmerica, LLC, 526 F.3d 1099, 1103 (7th Cir. 2008) (citations omitted). The motion for summary judgment in this civil rights action, as with any such motion, must be granted if "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). The moving party bears "the initial responsibility of informing the district court of the basis for its motion," Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986), and must demonstrate that no genuine issue of material fact exists for trial. Id. at 322. However, the moving party is not required to negate those portions of the nonmoving party's claim on which the nonmoving party bears the burden of proof. Id. at 323. Once the moving party demonstrates that there is no genuine issue of material fact, the nonmoving party bears the burden of demonstrating that such a genuine issue of material fact exists. See Harney, 526 F.3d at 1104 (citing cases). AIf the nonmoving party fails to establish the existence of an element essential to his case, one on which he would bear the burden of proof at trial, summary judgment must be granted to the moving party.@ Ortiz v. John O. Butler Co., 94 F.3d 1121, 1124 (7th Cir. 1996), cert. denied, 519 U.S. 1115 (1997).

The substantive law identifies which facts are material. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A dispute about a material fact is genuine only "if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Id. If no reasonable jury could find for the non-moving party, then there is no "genuine" dispute. Scott v. Harris, 550 U.S. 372 (2007). "The mere existence of a factual dispute is insufficient to overcome a motion for summary judgment; instead the nonmovant must present definite, competent evidence in rebuttal." Parent v. Home Depot U.S.A., Inc., 2012 WL 4329332, 2 (7th Cir. September 24, 2012) (finding summary judgment was appropriate because non-movant failed to present evidence to counter the motion).

Material Facts

Tax Debt Liability

Mr. Williams did not file Forms 1040, U.S. Individual Income Tax Returns, with the Internal Revenue Service ("IRS") for the taxable years at issue, 1996 through 2005, and did not fully pay his federal income tax liabilities for those years.

For each of the taxable years at issue, the IRS performed an examination, concluded that Mr. Williams had gross income derived from his podiatry practice in Jeffersonville, Indiana, and from other payments made to Mr. Williams that were reported to the IRS through Forms 1099, and that there were deficiencies with respect to those taxable years. As a result of these examinations and notices of deficiencies, a delegate of the Secretary of the Treasury of the United States made assessments against Mr. Williams for unpaid federal income taxes, penalties, and interest, for the taxable years and amounts listed in Attachment Number 1 of this Entry. On the date of each tax assessment a delegate of the Secretary of Treasury sent notice of the assessment and demand for its payment to Mr. Williams.

Mr. Williams failed, neglected, or refused to fully pay the amounts of the liabilities associated with the assessments listed in Attachment Number 1, and, after application of all credits, payments, and abatements, he is liable to the United States in the amount of $1,336,943.80, plus statutory additions, including interest, accruing from and after January 19, 2012, as follows:

+---------------------------------------------------+
                ¦Taxable Year  ¦Balance Due as of January 19, 2012  ¦
                +--------------+------------------------------------¦
                ¦1996          ¦$161,343.78                         ¦
                +--------------+------------------------------------¦
                ¦1997          ¦$178,561.70                         ¦
                +--------------+------------------------------------¦
                ¦1998          ¦$165,452.71                         ¦
                +--------------+------------------------------------¦
                ¦1999          ¦$153,238.49                         ¦
                +--------------+------------------------------------¦
                ¦2000          ¦$153,882.09                         ¦
                +--------------+------------------------------------¦
                ¦2001          ¦$100,651.57                         ¦
                +--------------+------------------------------------¦
                ¦2002          ¦$122,491.84                         ¦
                +--------------+------------------------------------¦
                ¦2003          ¦$124,740.56                         ¦
                +--------------+------------------------------------¦
                ¦2004          ¦$102,138.12                         ¦
                +--------------+------------------------------------¦
                ¦2005          ¦$74,442.94                          ¦
                +--------------+------------------------------------¦
                ¦Total         ¦$1,336,943.80                       ¦
                +---------------------------------------------------+
                

Tax Liens

The United States filed notices of the federal tax liens with the Clark County Recorder's Office in Clark County, Indiana, on the dates, and for the income tax years, as follows:

+----------------------------+
                ¦Taxable Year   ¦Date Filed  ¦
                +---------------+------------¦
                ¦1996           ¦12/03/2004  ¦
                +---------------+------------¦
                ¦1997           ¦12/03/2004  ¦
                +---------------+------------¦
                ¦1998           ¦12/03/2004  ¦
                +---------------+------------¦
                ¦1999           ¦12/03/2004  ¦
                +---------------+------------¦
                ¦2000           ¦12/03/2004  ¦
                +---------------+------------¦
                ¦2001           ¦10/05/2007  ¦
                +---------------+------------¦
                ¦2002           ¦10/05/2007  ¦
                +---------------+------------¦
                ¦2003           ¦10/26/2007  ¦
                +---------------+------------¦
                ¦2004           ¦10/26/2007  ¦
                +---------------+------------¦
                ¦2005           ¦05/21/2008  ¦
                +----------------------------+
                

By Warranty Deed, dated March 6, 1991, Mr. Williams and Leslie Ann Williams, as husband and wife, acquired ownership of and title to the Utica Pike Property, which consists of Parcel 011-1-0320 and Parcel 011-1-380, and which is legally described as follows:

A part of Survey No. 6 of the Illinois Grant in Utica Township of Clark County, Indiana, being a part of the same land conveyed to George Voigt at Deed Record 151, page 532 of the Cark [sic] County Records and more fully described as follow [sic], to wit:

Commencing at an iron pipe set over a stone placed at the intersection of the Southerly line of the Utica Pike (50 foot R/W) with the line dividing Surveys No. 5 and 6 of the Illinois Grant, running thence North 32 deg. 30' E., 992.75 feet with the Southeast line of Utica Pike to an iron pipe which is the true place of beginning; thence continuing North 32 deg. 30' East, with the line of the Utica Pike 75.0 feet to an iron pipe; thence South 53 deg. 03.4' E., 282.48 feet to an iron pipe; thence continuing South 53 deg. 03.4' E., 81.0 feet to an iron pipe; thence South 40 deg. 04.7' W., 126.65 feet to an iron pipe; thence North 44 deg. 41.6' West, 79.69 feet to an iron pipe; thence continuing North 44 deg. 41.6' West, 274.82 feet to the true place of beginning andcontaining 0.826 acres of land. The bearings herein refer to the true meridian as obtained by polar observation and the bearing of the within mentioned grant line is North 36 deg. 00' West.

ALSO, the following described real estate situate in the County of Clark and in the State of Indiana, to-wit:

A part of Survey No. 6 of the Illinois Grant in Utica Township of Clark County, Indiana, being a part of the same land conveyed to George F. Voigt, at Deed Record 151, page 532, and bounded as follows: Commencing at an iron pipe set over a stone which marks the intersection of the line dividing Surveys No. 5 and 6 of the Illinois Grant with the Southerly line of the Utica Pike, running thence North 32° 30' E., 1067.13 feet

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