Greene v. United States

124 Fed. Cl. 636, 116 A.F.T.R.2d (RIA) 7068, 2015 U.S. Claims LEXIS 1682, 2015 WL 9252678
CourtUnited States Court of Federal Claims
DecidedDecember 17, 2015
Docket14-123T
StatusPublished
Cited by5 cases

This text of 124 Fed. Cl. 636 (Greene v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greene v. United States, 124 Fed. Cl. 636, 116 A.F.T.R.2d (RIA) 7068, 2015 U.S. Claims LEXIS 1682, 2015 WL 9252678 (uscfc 2015).

Opinion

Pro Se Plaintiff; Summary Judgment; RCFC 56; 31 U.S.C. § 3720A; Motion to Compel; Motion to Stay; Illegal Exaction; Offset; Notice; Criminal Fine; Debt; Past Due; Certification

OPINION AND ORDER

SWEENEY, Judge

Before the court are the parties’ cross-motions for summary judgment pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (“RCFC”). In addition, plaintiff, proceeding pro se, moves to stay proceedings and to compel discovery. Plaintiff argues that when defendant offset his federal income tax overpayment for the 1995 tax year against a criminal fine owed to defendant, defendant illegally exacted the overpayment by violating procedural requirements under 31 U.S.C. § 3720A. For the reasons set forth below, defendant’s motion is granted, and plaintiffs motions are denied.

I. BACKGROUND

Plaintiff and his wife, Sandy Greene, filed a joint income tax return for the 1990 tax year reflecting a tax liability of $8,870 and withholding of $9,803.76. Subsequently, they received a refund of $933.76. The income taxes reflected on their joint tax return were assessed to a Joint Master File (“JMF”) account. In 1992, the Internal Revenue Service (“IRS”) began an audit of the Greenes for the 1990 tax year. Subsequently, the IRS’s examination work papers reflected unreported income of $888,496.75. The IRS issued to the Greenes a Notice of Deficiency proposing additional assessments. Specifically, the IRS assessed against them, jointly: $110,623 in taxes; an accuracy penalty of $1,646 pursuant to 26 U.S.C. § 6662(a); and $90,244.72 in interest. These joint assessments were made to the JMF account. It was later determined that Mrs. Greene was not liable for the entire tax liability resulting from the 1990 audit adjustments. Thus, on March 27, 1998, an additional $159,207 in income taxes, a fraud penalty of $191,939, and an accuracy penalty of $1,136 were assessed. These assessments were made to a separate Non-Master File (“NMF”) account solely under plaintiffs name (“NMF 1”).

Mrs. Greene’s request for Innocent Spouse Relief from the joint tax assessment was thereafter granted. Because the original return was filed jointly, and the deadline to change the filing status to “Married Filing Separate” had passed, the tax from the JMF account was transferred to an individual NMF account whose balance due was the sole responsibility of plaintiff. This second NMF account (“NMF 2”) was distinct from the first one. On June 4, 2005, the tax liabilities, penalties, interest, and payments for NMF 2 were transferred to an Individual Master File Separate Assessment account.

On September 1, 2005, plaintiff was convicted of evasion of the payment of taxes and subscribing to a false tax declaration in the United States District Court for the Northern District of Oklahoma. See United States v. Greene, No. 04-cr-209. The district court entered a judgment against plaintiff on March 7, 2006, sentencing him to 70 months of imprisonment, and imposing a $500,000 fine.

Three days later, on March 10, 2006, the fine was entered into the United States Department of Justice’s (“Department of Justice”) computerized debt collection system, TALON. On April 3, 2006, a Notice of Intent to Offset was generated by the United States Attorney’s Office via TALON. Six years later, on September 13, 2012, plaintiff settled a tax refund suit that was distinct from the *639 criminal action. As part of that settlement, he received a $437,423.60 tax refund for the 1995 tax year. The government then carried out an offset, applying the $437,423.50 tax refund toward the $500,000 fíne previously assessed against plaintiff.

Of the $437,423.50 that was used to offset part of the fine, $170,124 was applied against the tax liabilities, penalties, and interest for NMF 2, rendering it paid in full. However, as of April 4, 2014, NMF 1 had an outstanding balance of $761,101.46.

II. PROCEDURAL HISTORY

Plaintiff filed suit on February 12, 2014, in the United States Court of Federal Claims (“Court of Federal Claims”). Plaintiff has filed three motions. The first is a motion to stay proceedings pending resolution of Greene v. United States, No. 08-CV-021, in the United States District Court for the District of Arizona. Plaintiffs second motion is to compel discovery. Finally, plaintiffs third motion is for summary judgment pursuant to RCFC 56. Defendant has opposed all three motions and filed a cross-motion for summary judgment. The motions have been fully briefed, and the court deems oral argument unnecessary.

III. LEGAL STANDARDS

A. RCFC 56

Summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to a judgment as a matter of law. RCFC 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A fact is material if it “might affect the outcome of the suit under the governing law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). An issue is genuine if it “may reasonably be resolved in favor of either party.” Id. at 250, 106 S.Ct. 2505.

The moving party bears the initial burden of demonstrating the absence of any genuine issue of material fact. Celotex Corp., 477 U.S. at 323, 106 S.Ct. 2548. The nonmoving party then bears the burden of showing that there are genuine issues of material fact for trial. Id. at 324, 106 S.Ct. 2548. Both parties may carry their burden by “citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials” or by “showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact.” RCFC 56(c)(1).

The court must view the inferences to be drawn from the underlying facts in the light most favorable to the nonmoving party. Matsushita Elec. Ind. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). However, the court must not weigh the evidence or make findings of fact. See Anderson, 477 U.S. at 249, 106 S.Ct. 2505 (“[A]t the summary judgment stage the judge’s function is not himself to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial.”); Contessa Food Prods., Inc. v. Conagra, Inc.,

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124 Fed. Cl. 636, 116 A.F.T.R.2d (RIA) 7068, 2015 U.S. Claims LEXIS 1682, 2015 WL 9252678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greene-v-united-states-uscfc-2015.