United States v. Rodgers (1982)
- Docket
- 81-1476
- Decided
- 1982-01-01
Summary
Question: Does section 7403 of the Internal Revenue Code of 1954 grant the government the power to order the sale of a home of a delinquent taxpayer, even if a third party has interest in the home as well? Conclusion: Yes. Justice William J. Brennan, Jr. delivered the opinion of the 9-0 majority. The Court held section 7403 of the Internal Revenue Code of 1954 does grant the government power to order the sale of a home itself, even if the delinquent taxpayer is not the only one with interest in the property. However, that power is limited by equitable discretion, which means that the district court should consider a number of different variables including the possible competing prejudices and expectation of the parties involved. The Court also held that, if the home is sold, then the nondelinquent spouse is entitled to a portion of the proceeds because taking away the interest of an innocent third party would violate the Due Process Clause of the Fifth Amendment. Justice Harry A. Blackmun delivered an opinion concurring in part and dissenting in part in which he argued that the government has the power to sell property not belonging to an indebted taxpayer, but that it should be determined how far the power can extend. The government does not have the power to sell jointly owned property if the nondelinquent co-owner has a right to ban the sale and continue the possession. In this case, Rodgers had a state-protected right to remain in her home, so the government did not have the power to sell her house.