United States District Court, N.D. Alabama, Eastern Division
MEMORANDUM OPINION
ANNEMARIE CARNEY AXON UNITED STATES DISTRICT JUDGE
The
United States of America filed this action against Defendants
Henry J. Martin and Lydia A. Martin pursuant to 26 U.S.C.
§ 7401 to collect federal income taxes assessed against
the couple. Before the court is the United States' motion
for summary judgment. (Doc. 22). The court WILL
GRANT the motion because the United States has
established that the tax assessments are valid and
enforceable.
I.
BACKGROUND
In
deciding a motion for summary judgment, the court
“draw[s] all inferences and review[s] all evidence in
the light most favorable to the non-moving party.”
Hamilton v. Southland Christian Sch., Inc., 680 F.3d
1316, 1318 (11th Cir. 2012) (quotation marks omitted).
A.
Mr. Martin's Individual Income Tax Liabilities
Mr.
Martin failed to file individual federal income tax returns
(Forms 1040-United States Income Tax Return for Individuals)
for tax years 2000 through 2006. (Doc. 1 at ¶ 5; Doc.
22-1 at ¶ 5; Doc. 22-2; Doc. 22-3; Doc. 22-4; Doc. 22-5;
Doc. 22-6; Doc. 22-7; Doc. 22-8). Therefore, the Internal
Revenue Service (“IRS”) calculated the tax due on
the income Mr. Martin earned in those years, proposed an
assessment of his tax deficiencies, and issued a notice of
deficiency to Mr. Martin's last known address. (Doc. 1 at
¶ 6; Doc. 22-1 at ¶ 5; Doc. 22-2; Doc. 22-3; Doc.
22-4; Doc. 22-5; Doc. 22-6; Doc. 22-7; Doc. 22-8).
A
delegate of the Secretary of the Treasury assessed against
Mr. Martin income tax, interest, penalties, and statutory
additions for tax years 2000 to 2006, on the dates and in the
amounts reflected in the table below:
Tax Year
|
Assessment Date
|
Type of Assessment
|
Amount
|
2000
|
October 29, 2007
|
Estimated Tax Penalty
|
$2,096.20
|
Tax Assessed
|
$38,975.00
|
Late Filing Penalty
|
$8,769.37
|
Interest Assessed
|
$23,887.32
|
Failure to Pay Tax Penalty
|
$9,743.75
|
October 12, 2015
|
Interest Assessed
|
$29,659.14
|
2001
|
October 29, 2007
|
Estimated Tax Penalty
|
$103.29
|
Tax Assessed
|
$2,611.00
|
Late Filing Penalty
|
$587.47
|
Interest Assessed
|
$1,279.41
|
|
|
Failure to Pay Tax Penalty
|
$652.75
|
October 12, 2015
|
Interest Assessed
|
$1,864.18
|
2002
|
December 22, 2008
|
Tax Assessed
|
$1,175.00
|
Late Filing Penalty
|
$264.37
|
Interest Assessed
|
$606.58
|
Failure to Pay Tax Penalty
|
$293.75
|
October 12, 2015
|
Interest Assessed
|
$612.03
|
2003
|
December 22, 2008
|
Estimated Tax Penalty
|
$280.39
|
Tax Assessed
|
$10,867.00
|
Late Filing Penalty
|
$2,445.07
|
Interest Assessed
|
$4,775.80
|
Failure to Pay Tax Penalty
|
$2,716.75
|
October 12, 2015
|
Interest Assessed
|
$5,515.51
|
2004
|
December 22, 2008
|
Estimated Tax Penalty
|
$178.46
|
Tax Assessed
|
$6,228.00
|
Late Filing Penalty
|
$1,401.30
|
Interest Assessed
|
$2,253.23
|
Failure to Pay Tax Penalty
|
$1,401.30
|
Interest Assessed
|
$2,998.36
|
October 12, 2015
|
Failure to Pay Tax Penalty
|
$155.70
|
2005
|
December 22, 2008
|
Estimated Tax Penalty
|
$312.35
|
Tax Assessed
|
$7,787.00
|
Late Filing Penalty
|
$1,752.07
|
Interest Assessed
|
$2,035.12
|
Failure to Pay Tax Penalty
|
$1,284.85
|
October 12, 2015
|
Interest Assessed
|
$3,445.45
|
|
|
Failure to Pay Tax Penalty
|
$661.89
|
2006
|
December 22, 2008
|
Estimated Tax Penalty
|
$1,434.80
|
Tax Assessed
|
$30,320.00
|
Late Filing Penalty
|
$6,822.00
|
Interest Assessed
|
$4,546.32
|
Failure to Pay Tax Penalty
|
$3,183.60
|
Interest Assessed
|
$12,113.11
|
October 12, 2015
|
Failure to Pay Tax Penalty
|
$4,396.40
|
(Doc. 22-1 at ¶ 5; Doc. 22-2; Doc. 22-3; Doc. 22-4; Doc.
22-5; Doc. 22-6; Doc. 22-7; Doc. 22-8). A delegate of the
Secretary of Treasury gave Mr. Martin notice of these
liabilities and made demands for payment. (Doc. 22-1 at
¶ 6). Despite notice and demands for payment, Mr. Martin
failed to pay the balance due on the taxes, interest,
penalties, and other statutory additions assessed against him
individually for tax years 2000 through 2006. (Doc. 22-1 at
¶ 7). As of December 13, 2018, Mr. Martin owes the
United States $275, 965.79 in income taxes, interest,
penalties, and other additions for tax years 2000 to 2006,
plus statutory additions and interest that accrue until
payment in full. (Doc. 22-1 at ¶¶ 9-10; Doc.
22-13).
B.
The Martins' Joint Income Tax Liabilities
The
Martins jointly filed federal income tax returns (Forms
1040-United States Income Tax Return for Individuals) for tax
years 2007, 2008, 2011, and 2012. (Doc. 1 at ¶ 14; Doc.
22-1 at ¶ 12; Doc. 22-9; Doc. 22-10; Doc. 22-11; Doc.
22-12). According to the returns, the Martins owed federal
income taxes, but the couple did not remit payment of their
taxes with their returns. (Doc. 1 ¶ at 15; Doc. 22-1 at
12; Doc. 22-9; Doc. 22-10; Doc. 22-11; Doc. 22-12).
A
delegate of the Secretary of the Treasury assessed against
the Martins the joint income tax liabilities that they
reported as due on their federal tax returns, plus penalties,
interest, and statutory additions for tax years 2007, 2008,
2011, and 2012, on the dates and in the amounts reflected in
the chart below:
-
Tax Year
|
Assessment Date
|
Type of Assessment
|
Amount
|
2007
|
August 24, 2009
|
Tax Assessed Per Return
|
$9,999.00
|
Penalty for Failure to
Make Estimated Tax
Payments
|
$455.00
|
Late Filing Penalty
|
$2,249.77
|
Failure to Pay Tax Penalty
|
$849.91
|
Interest Assessed
|
$867.57
|
October 12, 2015
|
Interest Assessed
|
$3,249.50
|
Failure to Pay Tax Penalty
|
$1,649.84
|
2008
|
August 24, 2009
|
Tax Assessed Per Return
|
$8,254.00
|
Penalty for Failure to
Make Estimated Tax
Payments
|
$227.00
|
Late Filing Penalty
|
$1,269.72
|
Failure to Pay Tax Penalty
|
$176.35
|
Interest Assessed
|
$120.35
|
October 12, 2015
|
Interest Assessed
|
$1,986.62
|
Failure to Pay Tax Penalty
|
$1,587.15
|
2011
|
June 24, 2013
|
Tax Assessed Per Return
|
$10,799.00
|
Penalty for Failure to
Make Estimated Tax
Payments
|
$214.00
|
Late Filing Penalty
|
$2,429.77
|
Failure to Pay Tax Penalty
|
$809.92
|
Interest Assessed
|
$443.23
|
October 12, 2015
|
Interest Assessed
|
$1,056.79
|
Failure to Pay Tax Penalty
|
$1,889.82
|
2012
|
May 13, 2013
|
Tax Assessed Per Return
|
$9,039.00
|
Failure to Pay Tax Penalty
|
$45.19
|
Interest Assessed
|
$20.83
|
October 12, 2015
|
Interest Assessed
|
$691.13
|
Failure to Pay Tax Penalty
|
$2,214.56
|
(Doc. 1 at ¶ 16; Doc. 22-1 at ¶ 12; Doc. 22-9; Doc.
22-10; Doc. 22-11; Doc. 22-12). A delegate of the Secretary
of Treasury gave the Martins notice of these liabilities and
made demands for payment. (Doc. 22-1 at ¶ 13). Despite
notice and demands for payment, the Martins have failed to
pay the balance due on the income taxes, interest, penalties,
and other additions assessed against them. (Doc. 22-1 at
¶ 14). As of December 13, 2018, the Martins, jointly,
owe the United States $70, 256.25 in income taxes, interest,
penalties, and other additions for tax years 2007, 2008,
...