United States of America v. Church et al

Filing 51

AGREED FINAL JUDGMENT; signed by District Judge Paul L. Maloney (Judge Paul L. Maloney, acr)

IN THE UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF MICHIGAN

UNITED STATES OF AMERICA,

)
)
Plaintiff,
)
)
v.
)
)
TAMMY M. CHURCH,
)
R&R UTILITIES LLC,
)
STATE OF MICHIGAN, DEPARTMENT
)
OF TREASURY,
)
ANTRIM COUNTY,
)
MORTGAGE ELECTRONIC
)
REGISTRATION SYSTEMS, INC.,
)
INVESTAID CORPORATION,
)
OLD REPUBLIC NATIONAL TITLE
)
INSURANCE COMPANY, and
)
MICHIGAN HOMEOWNER ASSISTANCE )
NONPROFIT HOUSING CORPORATION )
)
Defendants.
)
_______________________________________)

Case No. 14-cv-01205
Judge Paul Maloney

AGREED FINAL JUDGMENT
The plaintiff, the United States of America, and the defendants Tammy M. Church, R&R
Utilities, Old Republic National Title Insurance Company (“Old Republic”), and Michigan
Homeowner Assistance Nonprofit Housing Corporation (“MHA”), by undersigned counsel,
agree to the entry of a final judgment as follows:
1. Tammy M. Church is liable for federal income taxes, penalties, and interest for the years
1999-2006, as more fully described in appendix A hereto, in the total amount of $916,394.26, as
of November 20, 2014, plus statutory additions from and after that date until fully paid.
2. By Warranty Deed dated March 11, 2004, and recorded on March 30, 2004, with the
Antrim County Register of Deeds, Tammy M. Church acquired title to and ownership of the real
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property located at 10329 SW Torch Lake Drive, Rapid City, MI 49676 (the “Subject Property”),
which is located within the jurisdiction of this Court and is legally described as follows:
Lot 19, WOODRIDGE, according to the recorded plat thereof as recorded at
Liber 2 of Plats, page 32, Antrim County Records.
APN # 05-12-815-015-00
3. Tammy M. Church owns a 100% undivided interest in the Subject Property.
4. The United States has valid and enforceable federal tax liens against Tammy M. Church’s
interest in the Subject Property for the tax liabilities described in ¶ 1.
5. Subject to the conditions in the following paragraphs, the United States, Tammy M.
Church, MHA, and Old Republic agree that the property shall be sold in the normal course. The
property shall be sold via a private sale and listed with a real estate agent approved by the United
States.
6. Any sale pursuant to ¶ 5 shall be subject to the approval of the United States.
7. The judgment referred to in ¶ 1 shall be marked satisfied upon the distribution of the
proceeds of sale described in subpart THIRD of ¶ 11 below.
8. This agreement is subject to the following conditions:
a. Tammy M. Church shall make reasonable efforts to keep the property in saleready condition and cooperate with the real estate agent listing the house.
b. Tammy M. Church must pay out of the sale proceeds all property taxes due and
owing during the pendency of the sale;
c. Tammy M. Church must not commit waste against the Subject Property;
d. Tammy M. Church shall reasonably cooperate with the United States in
maximizing the sale price of the Subject Property.

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e. When a purchase agreement is approved by the United States, all parties having
liens will cooperate with the closing agent to effectuate a release of their liens so
that clear title can be given to the purchaser.
9. In the event that a sale is not agreed to by the United States pursuant to ¶ 5, the United
States shall retain all rights under the law to collect the debts of Tammy M. Church, including a
judicial sale that will not mark the judgment in ¶ 1 satisfied.
10.

The sale of the Property shall be free and clear of all rights, titles, claims, and

interest of all parties to this action, any successors in interest or transferees of those parties.
11. The proceeds of the sale of the Subject Property pursuant to ¶ 5 shall be distributed first
to pay the costs of the sale. The remaining proceeds shall be distributed in the following order:
FIRST, to Tammy M. Church, as a fee for caring for the property during the pendency of the
sale, in an amount not to exceed 0.5% of the proceeds or $2,500.00, whichever is lower.
SECOND, to counsel for Tammy M. Church, in an amount not to exceed $3,000.00.
THIRD, to the United States for application toward Tammy M. Church’s federal income tax
liability in paragraph 1.
FOURTH, to Old Republic for application toward Tammy M. Church’s mortgage debt,
current balance being $300,000.00.
FIFTH, to MHA for application toward Tammy M. Church’s mortgage debt.
12. Other than as provided for in this agreement, all parties shall bear their own costs,
including any attorneys’ fees.
13. The closing documents must reflect the payment to Tammy M. Church as a caretaker fee
and the payment to her attorney as attorney fees.

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AGREED:

OLD REPUBLIC NATIONAL TITLE
INSURANCE COMPANY

UNITED STATES OF AMERICA
/s/ Robert J. Wille, Jr.

/s/ Kurt Riedel
Robert J. Wille, Jr.
U.S. Department of Justice, Tax Division (DC)
P.O. Box 55
Ben Franklin Station
Washington, DC 20044
[phone]
Email: [e-mail]

Kurt E. Riedel
Plunkett Cooney (Bloomfield Hills)
38505 Woodward Ave., Ste. 2000
Bloomfield Hills, MI 48304
[phone]
Email: [e-mail]
TAMMY CHURCH
R&R UTILITIES

MICHIGAN HOMEOWNER ASSISTANCE
NONPROFIT HOUSING CORPORATION

/s/ Thomas J. Gezon

/s/ Erik Alwyn Graney

Thomas J. Gezon
Smietanka Buckleitner Steffes & Gezon
4250 Chicago Dr., SW, Ste. B
Grandville, MI 49418
[phone]
Email: [e-mail]

Erik Alwyn Graney
Michigan Department of Attorney General
Williams Building, State Operations Division
525 W Ottawa St., 2nd Fl.
Lansing, MI 48933
[phone]
Email: [e-mail]

IT IS SO ORDERED, ADJUDGED, AND DECREED.
April 8, 2016
Dated: ____________________

/s/ Paul L. Maloney
___________________________________
PAUL L. MALONEY
UNITED STATES DISTRICT JUDGE

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Appendix A
Income Tax Liabilities
Period
Ending

Balance Due as of
11/20/2014

12/31/2001
(Form 1040)

$7,825.14

12/31/2002
(Form 1040)

$1,236.60

12/31/2004
(Form 1040)

$8,182.70

12/31/2005
(Form 1040)

$63,710.12

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Form 940 and 941 Liabilities
Period
Ending

Balance Due as of
11/20/2014

6/30/2004
(Form 941)

$36,607.93

09/30/2004
(Form 941)

$51,706.35

12/31/2004
(Form 941)

$61,091.12

03/31/2005
(Form 941)

$41,435.26

06/30/2005
(Form 941)

$30,832.17

09/30/2005
(Form 941)

$5,758.65

12/31/2005
(Form 941)

$22,054.94

03/31/2006
(Form 941)

$25,430.00

06/30/2006
(Form 941)

$23,053.47

09/30/2006
(Form 941)

$15,293.89

12/31/2006
(Form 941)

$15,176.68

12/31/2005
(Form 940)

$1,208.80

12/31/2006
(Form 940)

$855.00
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Trust Fund Recovery Penalties
Period Ending
09/30/1999
(TFRP)
12/31/1999
(TFRP)
06/30/2000
(TFRP)
09/30/2000
(TFRP)
12/31/2000
(TFRP)
12/31/2003
(TFRP)

Balance Due as of
11/20/2014
$107,369.46
$72,816.26
$98,693.88
$123,705.53
$69,906.81
$32,443.50

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