Tax Lien – Foreclosure

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7^th Circuit Court of Appeals

Case Name: United States of America v. Joyce Adent, et al

Case No.: 15-3554

Officials: BAUER, POSNER, and FLAUM, Circuit Judges.

Focus: Tax Lien – Foreclosure

Appellants fail to provide exceptional circumstances that overcome the governments paramount interest in prompt and certain collection on property subject to a tax lien for failure to pay despite innocent interest in property.

“Additionally, the Supreme Court provided a non‐exhaustive list of four factors to consider when an innocent third party has an interest in the property to be sold, recognizing that “financial compensation may not always be a completely adequate substitute for a roof over one’s head.” Id. at 704. These factors include: (1) the prejudice to the government’s interest as the result of a partial, rather than a total, sale; (2) “whether the third party with a non‐liable separate interest in the property would, in the normal course of events … have a legally recognized expectation that that separate property would not be subject to forced sale by the delinquent taxpayer or his or her creditors”; (3) the prejudice to the third party as the result of a total sale; and (4) “the relative character and value of the non‐liable and liable interests held in the property.” Id. at 710–11.”

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.