On an Appeal made by Defendant Deborah Barczyk, the 6th Circuit Opinion is that the District Court for the Eastern District (MI) has authority, to order a foreclosure and sale of entireties property having attached Federal tax liens.
The delinquent tax debt in the instant matter belonged solely to Defendant Barczyk’s spouse.
Noting it was previously decided by the Supreme Court (Rodgers, 461 U.S.)…once a tax lien properly attaches to any jointly-owned marital (real) property “a district court may order a forced sale of that property”, even when this expressly destroys the state-guaranteed survivorship entitlement expected as tenants by the entirety. Though an entireties property estate has the right to block the other spouse from selling said property unilaterally…the enforcement provisions of 26 U.S.C. Sec. 7403 are expansive enough to include foreclosure and sale of property as satisfaction of a tax lien.
The allocation of the sales proceeds are to be 50/50, between non-defaulting spouse (here, Defendant Barczyk) and the U.S. This rule of allocation is binding, being established per prior 6th Circuit decision, Barr, 617 F.3d.