ORLEANS — Two houses owned by David Delgizzi and seized by the Internal Revenue Service attracted a high bid of $180,000 at an IRS auction held on April 23.
The properties, at 14 and 18 Brewster Cross Road, are assessed by the town for a combined $955,400. The proceeds will put only a small dent in the $2.3 million Delgizzi owes in state and federal income taxes.
Roger Sweeney, an IRS property appraisal and liquidation specialist, said in an email that the two properties were the only ones that were up for auction at this time.
Delgizzi owns numerous properties on the Outer Cape; most are in poor condition, although he has tenants in many of them. All currently have liens on them for unpaid taxes.
The Truro Motor Inn on Route 6, where Delgizzi ran substandard rental units, is one example. There, according to 2021 court records, Delgizzi was collecting $216,000 per year in rent while failing to comply with health codes. The inn was closed and tenants were evicted after Delgizzi failed to pay back taxes and ignored a court order to update the failed septic system at the property. Delgizzi was supposed to pay to relocate those tenants, but he skipped out on that, too.
In Orleans, Delgizzi owns the now-closed Lobster Pound at 157 Route 6A.
The winning bidder on the Brewster Cross properties, which were auctioned together, put down a deposit and has until May 10 to pay the balance to the IRS.
“Once the final payment is submitted, I will issue a certificate of sale,” Sweeney said. Delgizzi has 180 days from the auction date to redeem the property. To do so, he must reimburse the winning bid amount plus 20 percent interest, compounded daily.
“If not redeemed within the 180 days, then the certificate of sale is returned to the IRS and a quitclaim deed is issued to the winning bidder,” Sweeney said.
Sweeney said he could not identify the winning bidder or disclose who else had submitted bids. A Texas mortgage company is owed $175,468 by Delgizzi on 14 Brewster Cross Road. According to Truro attorney Michael Fee, mortgage holders frequently bid at such auctions.
Last fall, the IRS asked the U.S. Attorney’s office to put some pressure on Delgizzi, who lives in a $2 million house in Weston with his wife, Carolyn. He was served with a summons to U.S. District Court to explain why he had ignored several requests from the IRS to provide tax documents.
The District Court has so far had no more success at getting compliance from Delgizzi than the IRS did. He has failed to appear at a string of show cause hearings.
Reached by phone, Carolyn Delgizzi said she had no comment.
