Tax & Accounting News

Disabled Retiree Who Lost Home Receives Settlement In Tax Battle

Disabled Retiree Who Lost Home Receives Settlement In Tax Battle

A disabled retiree has finally received an $85,000 settlement following a property tax battle that ultimately cost her over $200,000 in equity, and her residence itself.

According to a report by The Standard-Times, New Bedford, Massachusetts resident Deborah Foss, 67, lost her home and over $200,000 in equity over a rather paltry $10,000 in tax debt. 

Foss, with the aid of the Pacific Legal Foundation -- an organization that promotes itself as "defending Americans’ liberties when threatened by government overreach and abuse" -- first filed a lawsuit in Bristol County Superior Court in March 2022. 

The suit specifically named Tallage Davis LLC and the city of New Bedford as defendants. Initially, Foss was offered a $65,000 settlement with the condition that she refrain from commenting on the case both publicly and in her private life. 

She and her legal team rejected that deal, but have now taken the $85,000 settlement that does not include a gag order. 

It is worth noting, however, that Tallage disputes Foss's claims that she was asked to keep her lips sealed. Per The Standard-Times:

According to Tallage attorney Daniel Hill, PLF’s attorneys agreed to “hash out” the details of a confidentiality provision on June 10, but a week later told Tallage’s attorneys that Foss decided that $65,000 was not enough money.

At the time Foss lost her home, the lawsuit alleges she was living on a fixed income of under $1,000 per month after leaving her job in a a coffee company’s shipping and receiving department. According to her legal representatives, the retiree suffers from chronic lymphocytic leukemia, COPD, and neuropathy.

In 2015, Foss spent her entire savings and an inheritance from her mother to buy the property she ultimately lost for $168,500. She resided there, per the lawsuit, with her wife and her twin sister.

In 2016, medical and financial problems prevented Foss from paying her property taxes. The city initiated a tax take of $3,748 in December 2016.

Then, in June 2018, legal documents allege that New Bedford officials assigned tax title, a form of lien, to Tallage for a sum that had grown to $9,626.19, including $1,361.76 in interest.

The Boston Globe weighed in on the situation as well, noting that "only a few states, including Massachusetts, allow cities and towns — and the private companies that buy their tax liens — to take the entire value of a property when the owner’s unpaid tax bill is for a much lower amount."

Now that Foss has settled, her case will not reach the Supreme Judicial Court, which the Globe indicated the PLF was hoping for. 

The outlet also shared, however, that the legal team who represented Foss is thrilled that she is no longer sleeping in her car, “We’re really happy for Deb, because her living situation is so much better now,” said Christina M. Martin, one of the lawyers. “But we’re not done in Massachusetts.”

What do you think about the Deborah Foss case?

You Might Also Enjoy:

share this post
Search for matches...
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts