Married Couple’s Quiet Title Action Against IRS Dismissed (Novoselsky DC Wis.)

A lawyer and his wife’s quiet title action against the IRS was dismissed. The taxpayers filed the suit to determine the validity of a federal tax lien on their residence and to determine its priority relative to other liens on the same property. The taxpayers alleged that the IRS filed the Notice of Federal Tax Lien (NFTL) despite an agreement in writing regarding the underlying debt for a plan of installment payments and despite a prior withdrawal of the lien memorializing the debt. However, it was noted that the installment agreement expressly allowed the IRS to file NFTLs. Moreover, while the agreement was in effect, the withdrawal of a prior NFTL did nothing to disturb the underlying lien or to bar the IRS from filing future NFTLs. Therefore, the IRS was entitled to summary judgment on the operative complaint. Finally, the taxpayers’ motion to amend their complaint to a claim for injunctive relief related to the levy on the funds held by the taxpayers’ bankruptcy trustee and a claim for damages under Code Sec. 7433, was denied.

D. A. Novoselsky, DC Wis.

Other References:

Code Sec. 6331

CCH Reference – 2018FED ¶38,187.39

Tax Research Consultant

CCH Reference – TRC IRS: 48,210.15

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup