Jay R. Orme Julie Ann Orme v. United States of America, and Balyeat Law, P.C., as Trustee

The United States appeals the district court’s grant of summary judgment in favor of Jay R. Orme and Julie Ann Orme. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we reverse.

The Ormes had transferred real property to Clyde M. Burgess and Janice K. Burgess pursuant to a land sales contract. During the term of the contract, the United States filed a federal tax lien on the property against the Burgesses. Thereafter, the Burgesses forfeited the land sales contract and title was returned to the Ormes. The Ormes sought to quiet title to the property. The district court concluded that the forfeiture of a land sales contract was not a sale of property subject to the notice requirements of 26 U.S.C. § 7425 (b); therefore, that the federal tax lien was eliminated upon forfeiture of the land sales contract. The United States argues that, under 26 U.S.C. §§ 7425 (b) and (c)(4), the forfeiture of the land sales contract was a sale of property subject to the notice requirement and, because no notice was given, the forfeiture was subject to the federal tax lien. We agree.

BACKGROUND

The relevant facts are not in dispute. The Ormes owned a parcel of real property located in…