United States v. Howe

CourtDistrict Court, D. Idaho
DecidedApril 9, 2025
Docket2:19-cv-00421
StatusUnknown

This text of United States v. Howe (United States v. Howe) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Howe, (D. Idaho 2025).

Opinion

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF IDAHO

UNITED STATES OF AMERICA, Case No. 2:19-cv-00421-DCN Plaintiff, MEMORANDUM DECISION AND v. ORDER

EBENEZER K. HOWE IV, and PHI DEVELOPMENT LLC,

Defendants.

I. INTRODUCTION Before the Court is United States Magistrate Judge Candy W. Dale’s Report and Recommendation (“R&R”) (Dkt. 223) and Defendant Howe’s objections (Dkt. 226) to the same. Howe has also filed a Motion to Dismiss and Reinstate FRCP. Dkt. 233. Having reviewed the record and briefs, the Court finds the facts and legal arguments are adequately presented. Accordingly, in the interest of avoiding further delay, and because the Court finds that the decisional process would not be significantly aided by oral argument, the Court will decide the Motion without oral argument. Dist. Idaho Loc. Civ. R. 7.1(d)(1)(B). Upon review, and for the reasons set forth below, the Court ADOPTS Judge Dale’s R&R IN ITS ENTIRETY, OVERRULES Howe’s objections, and DENIES Howe’s Motion to Dismiss. II. BACKGROUND The Court has set forth the factual background of this case in numerous previous decisions. See, e.g., Dkt. 44, at 1–4; Dkt. 192, at 3–7. In addition to the comprehensive

background Judge Dale outlined in the R&R (Dkt. 223, at 2–9), the Court incorporates its own prior recitations of the facts here. Insofar as this is summary judgment, however, the Court will briefly review the salient points that bear on the motions today. Howe is a tax defiler. He does not believe in taxes. He does not believe he is required to pay taxes. Howe admits he has never filed a 1040A return in his life. Dkts. 11, at 6; 140,

at 1 n.1; 212, at 1. He also affirms he has never made an election requesting that the IRS prepare a substitute income tax return, or a 1040A return, on his behalf. Dkt. 212. Howe does not dispute that he has not filed a federal income tax return for tax years 2005, 2006, 2008, 2009, 2010, 2011, 2012, and 2013, which are the tax years identified in the Complaint. Dkt. 1.

On October 29, 2019, the United States filed its Complaint against Howe and PHI Development LLC (“PHI”), to: (1) reduce to judgment the outstanding federal tax assessments against Howe for the aforementioned tax years; (2) determine that a parcel of real property (the “Subject Property”), located in Boundary County, Idaho, is held by PHI Development LLC, a nominee or alter ego of Mr. Howe; (3) foreclose federal tax liens on

the Subject Property; and (4) sell the Subject Property and distribute the proceeds from such sale in accordance with the Court’s findings as to the validity and priority of the liens and claims of all parties. See generally Dkt. 1.1 Over the past five years, Howe has filed dozens of motions and appeals. Many of those filings were frivolous or duplicative of other filings. Howe has persisted with two

primary theories during the pendency of this case. First, Howe alleges the Court lacks subject matter jurisdiction to hear the Government’s claims. The Court has rejected that argument ad nauseum. See Dkt. 47 (finding Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1340 and 1345, and 26 U.S.C. §§ 7402(a) and 7403); Dkt. 59 (order adopting report and recommendation and

entering final order denying motion to dismiss); Dkt. 64 (denying Howe’s motion to reconsider ruling and denying Howe’s second motion to dismiss for lack of subject matter jurisdiction); Dkts. 71, 72 (Ninth Circuit Order and Mandate dismissing appeals of District Court’s orders on motions to dismiss); Dkts. 75, 78 (ordering Defendants to file an answer because Court has jurisdiction); Dkt. 112 (denying Howe’s petition for a writ of certiorari

to the United States Supreme Court); Dkt. 116, at 2 (reaffirming the Court has jurisdiction over this case); Dkt. 142, at 7 (same); Dkt. 176, at 23–25 (holding, on summary judgment, that Howe’s jurisdictional arguments are meritless); Dkt. 177 (order adopting report and recommendation on all issues—including jurisdiction), Dkt. 178, at 5 (reaffirming the Court has subject matter jurisdiction), Dkt. 192, at 22 (noting the Court has “explained

[that it has jurisdiction] quite literally, a dozen times” and “will not discuss [jurisdiction]

1 The Court has summarized the United States’ requested relief into four points. That summary is based upon the five claims the Government alleges in the Complaint: (1) Reduce to Judgment Federal Tax Assessments; (2) Judgment that PHI is an Alter Ego of Howe; (3) Fraudulent Transfer Under Idaho Code § 55-913(1)(a); (4) Fraudulent Transfer Under Idaho Code § 55-913(1)(b) and/or §55-914; and (5) Foreclose Federal Liens and Order Judicial Sale. further”). Second, Howe ardently contends the Government falsified the substitute returns it submitted on his behalf and, therefore, the legal doctrine of “unclean hands” applies as a

legal defense to the Government’s allegations. Again, the Court has rejected this argument. See Dkt. 176, at 21–23 (finding that, for purposes of summary judgment, the doctrine of unclean hands fails as a matter of law); Dkt. 192, at 9 (adopting the report and recommendation and holding the doctrine of unclean hands is “not available to Howe under the circumstances of this case”).

Despite these countless decisions, as will be shown below, most of Howe’s objections to Judge Dales current R&R still relate to these two principles. After years of motion practice and delays, the Government filed a Motion for Judgment on the Pleadings as to Claim Two of the Complaint (that PHI is the nominee or alter ego of Howe) on May 20, 2022.2 Dkt. 144. On August 10, 2022, Judge Dale issued a

R&R which recommended that the Government’s Motion be granted. Dkt. 176. Howe objected. Dkt. 180. The undersigned overruled Howe’s objection and adopted Judge Dale’s R&R. Dkt. 192. Thereafter, the United States filed a Motion for Summary Judgment as to Claims One and Five of the Complaint. Dkt. 194.3 Howe filed a cross-motion seeking summary

judgment on his affirmative defense of unclean hands (Dkt. 197), which was followed by

2 PHI has never appeared in this matter, and the Clerk entered default against that entity years ago. Dkt. 84. Howe’s motion to set aside the default was denied. Dkt. 91. The Court has already held PHI is the nominee or alter ego of Howe. Dkt. 192. Howe dissolved PHI and admits that he owns the Subject Property. Dkt. 82, at ¶¶ 4–6, 10–16, 28–29, 31–37, 40, 48, 50–52, 57, 59, 63, 75–76, 78–84. 3 Claims Three and Four (related to fraudulent transfer under Idaho law) are not at issue today. a motion to amend/correct the cross-motion (Dkt. 211). Howe also filed numerous discovery-related motions that related to summary judgment. Dkts. 198, 201, 210, 212, 214.

On October 5, 2023, Judge Dale issued an R&R on the Parties’ Motions for Summary Judgment. Dkt. 223. Judge Dale recommended that the Court grant the Government’s Motion for Summary Judgment, deny Howe’s competing Motion for Summary Judgment, and enter judgment on Claims One, Two, and Five accordingly. Id. at 32–33. Per statute, Judge Dale noted that any objections to the R&R could be filed within

14 days. Id. at 33. Within the R&R, Judge Dale also denied each of Howe’s ancillary discovery motions. See generally id.

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