United States v. Martin

          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, ...