United States v. Adent, No. 15-3554 (7th Cir. 2016)Annotate this Case
The Adents filed joint federal income tax returns for 1998 and 2001, but did not pay. The IRS sent a demand. As of October 2012, they owed $90,681.26. Leonard also owed federal employment and unemployment taxes, totalling $65,637.17. The Adents jointly own their residence, Parcel A. Leonard and their son, Derek, jointly own mixed‐use condominium and commercial Parcel B. Joyce has office space for her business at Parcel B. Liens attached to Parcels A and B, 26 U.S.C. 6321. The government filed suit to foreclose the liens and obtain a sale of both Parcels. The Adents filed answers, but did not raise the statute of limitations. Leonard and Joyce stipulated that they owe the unpaid personal income taxes; Leonard stipulated that he owes the unpaid employment and unemployment taxes. The court entered judgment in favor of the government and found that, because there were no innocent party interests in Parcel A, it was required to order a sale. With regard to Parcel B, the court weighed the prejudice to the government of a partial sale and the prejudice to Derek of a total sale and found in favor of the government. The Seventh Circuit affirmed. The Adents waived their statute of limitations defense and presented no exceptional circumstances that overcome the severe prejudice to the government’s “paramount” interest.