Heinrich v. United States Department of Treasury, Internal Revenue Service

Filing 51

MEMORANDUM AND ORDER - Defendant's Motion for Summary Judgment (Filing No. 46 ) is granted. The IRS has a valid claim against the Estate of Clayton C. Heinrich in the amount of $234,559.53, plus accrued interest and penalties. Ordered by Magistrate Judge F.A. Gossett. (GJG)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
ESTATE OF CLAYTON C.
HEINRICH, Deceased,
Plaintiff,
v.
UNITED STATES DEPARTMENT
OF TREASURY, INTERNAL
REVENUE SERVICE,
Defendant.

)
)
)
)
)
)
)
)
)
)
)

8:14CV401
MEMORANDUM AND ORDER

This matter is before the court on the Motion for Summary Judgment (Filing No. 46)
filed by Defendant. For the reasons explained below, Defendant’s motion will be granted.
BACKGROUND
This action concerns the Internal Revenue Service’s (“IRS”) claim for unpaid taxes
against the estate of Clayton C. Heinrich (“the decedent”) in a pending probate action in the
County Court of Webster County, Nebraska. The IRS claims the decedent is indebted to the
United States in the amount of $234,559.53. (Filing No. 48-1 at pp. 2-3).
On September 22, 2010, the IRS filed a Notice of Federal Tax Lien against the
decedent with the Register of Deeds of Webster County, Nebraska, (“Register of Deeds”)
for federal income taxes owed for the 2005, 2006, and 2007 tax years (Filing No. 48-1 at pp.
4-5; Filing No. 48-2 at p. 2). On September 23, 2011, and October 13, 2011, the IRS filed
Notices of Federal Tax Liens jointly against the decedent and his wife Leona Heinrich with
the Register of Deeds for federal income taxes owed by them for 2004 through 2009 tax years
(Filing No. 48-1 at p. 5; Filing No. 48-2 at pp. 3-4). On August 28, 2012, the Notices of
Federal Tax Liens for unpaid tax liabilities were filed with the Register of Deeds against the
personal representative (“PR”) and nominees of the estate. (Filing No. 48-1 at p. 5; Filing
No. 48-2 at pp. 5-9).
The probate of the decedent’s estate commenced in county court on July 15, 2014.
(Filing No. 47-4 at p. 1). On August 28, 2014, the IRS filed a Proof of Claim in the county

court action, asserting that the decedent owed $250,801.81 in unpaid taxes for tax years 2006
to 2009 and 2014, which included an estimate of $20,000 the IRS anticipated the decedent
would owe for the 2014 tax year. (Filing No. 48-1 at p. pp. 2-3). The PR subsequently filed
an income tax return and paid the decedent’s 2014 income tax. (Filing No. 48-1 at p. 2). As
a result, the IRS filed an Amended Proof of Claim against the estate in the total amount of
$234,559.53 for tax years 2006 to 2009. (Filing No. 48-1 at pp. 2-3; Filing No. 48-3).
On October 16, 2014, the PR filed a “Notice of Disallowance of Claim” in county
court, alleging the IRS’ claim was not verified and the IRS had “not furnished a complete
detailed statement . . . depicting what amounts have been paid and what amounts remain
unpaid.” (Filing No. 1-1). The IRS removed the matter to this Court (Filing No. 1) and also
filed a Petition to Allow Claim (Filing No. 7). This court retained jurisdiction and granted
the IRS’ petition to allow claim. (Filing No. 31). An Inventory of Assets filed on March 23,
2015, in the county court case provides that the estate property is insufficient to pay all
creditors. (Filing No. 47-6). The probate case remains pending in county court. (Filing
No. 47-4).
The IRS provided an accounting of its claim to the estate, setting out each payment
received on the delinquent tax debt and the corresponding credit given for the payment.
(Filing No. 48-1 at pp. 5-6; Filing No. 49-2). The IRS has not received payment for the
decedent’s delinquent tax debt for years 2006 to 2009 and alleges the estate owes
$234,559.53, as of November 30, 2015, plus accruing interest and penalties. (Filing No.
48-1 at p. 3).
SUMMARY JUDGMENT STANDARD
Summary judgment should be granted “if the movant shows that there is no genuine
dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.
R. Civ. P. 56. The movant bears the initial responsibility of informing the Court of the basis
for the motion, and must identify those portions of the record which the movant believes
demonstrate the absence of a genuine issue of material fact. Torgerson v. City of Rochester,
643 F.3d 1031, 1042 (8th Cir. 2011) (en banc). If the movant does so, the nonmovant must
respond by submitting evidentiary materials that set out specific facts showing that there is a
genuine issue for trial. Id. “Where the unresolved issues are primarily legal rather than

factual, summary judgment is particularly appropriate.” Koehn v. Indian Hills Cmty. Coll.,
371 F.3d 394, 396 (8th Cir. 2004).
DISCUSSION
Plaintiff did not respond to Defendant’s motion for summary judgment. On a motion
for summary judgment, “Properly referenced material facts in the movant’s statement are
considered admitted unless controverted in the opposing party’s response.”

NECivR

56.1(b)(1). “Failure to file an opposing brief is not considered a confession of a motion but
precludes the opposing party from contesting the moving party’s statement of facts.”
NECivR 7.1(b)(1)(C). Thus the Court will assume that Defendant’s statement of the facts is
established.
“If any person liable to pay any tax neglects or refuses to pay the same after demand,
the amount (including any interest, additional amount, addition to tax, or assessable penalty,
together with any costs that may accrue in addition thereto) shall be a lien in favor of the
United States upon all property and rights to property, whether real or personal, belonging to
such person.” 26 U.S.C. § 6321. “State law governs the majority of conflicts between
lienholders competing for the same property, but, when an IRS tax lien is involved, federal
law, specifically [26 U.S.C. § 6323], outlines rights of private creditors as to the tax lien.” In
re May Reporting Servs., Inc., 115 B.R. 652, 658 (Bankr. D.S.D. 1990); see also United States
v. Estate of Romani, 523 U.S. 517, 532, (1998).
The IRS obtained valid liens against the decedent’s property for failure to pay federal
income tax between 2006 and 2009, filed Notices of Federal Tax Liens in Webster County in
2010, 2011 and 2012, and appropriately filed a Proof of Claim in the pending probate action.
(Filing No. 48-1 at pp. 4-5; Filing No. 48-2 at 2-9). The PR disallowed the IRS’ claim for the
reason that the claim was not verified and the IRS had “not furnished a complete detailed
statement . . . depicting what amounts have been paid and what amounts remain unpaid.”
(Filing No. 1-1). The PR’s assertion apparently was based on the belief the IRS had not
properly credited payments made to the IRS. (Filing No. 22 at p. 2; Filing No. 47-3 at pp.
4-5). However, the IRS has submitted as evidence a “complete accounting” reflecting each
payment received and applied to the decedent’s tax balance. (Filing No. 48-1 at pp. 5-6;
Filing No. 49-2). The estate has not identified any errors in the IRS’ accounting or submitted

evidence to rebut the IRS’ evidence reflecting that the decedent’s outstanding delinquent tax
liability is $234,559.53, as of November 30, 2015. (Filing No. 48-1 at p. 3). Therefore, the
court finds the IRS has a valid claim of $234,559.53 in unpaid federal income taxes against
the estate. Accordingly,
IT IS ORDERED:
1.

Defendant’s Motion for Summary Judgment (Filing No. 46) is granted.

2.
The IRS has a valid claim against the Estate of Clayton C. Heinrich in the
amount of $234,559.53, plus accrued interest and penalties.

DATED: March 29, 2016.
BY THE COURT:
s/ F.A. Gossett
United States Magistrate Judge