2011 900XP Oil problem HELP!

Hello, I just purchased a used 2011 900 XP from an individual. It has around 140 hours on it with 1300 miles. The previous owner stated that the machine had been parked in the barn all winter and not driven so I decided to go ahead and service it when I got it home. When I removed the dipstick, I was surprised to see that the oil level in the oil tank was way over full. I thought previous owner had just over filled it. I removed the engine drain plug but I was surprised again to see that only about a quart or so of oil drained out. I pulled the oil filter, which was full of oil, and then went back and checked the oil tank, it was still way over full. I decided to pull the hose off that feeds the crank case to make sure there wasn’t anything blocking it and there wasn’t. All of the old oil from the tank immediately drained out into a catch pan I had.

I decided to put a funnel and hose on the crank case oil inlet and pour some oil directly into the crank case to see what would happen. The oil would not drain into the crank case. Why would this be? With the funnel sitting there half full of oil, I removed the coil wires (so the engine wouldn’t start) and turned the motor over a few times. The oil in the funnel very slowly drained down into the crankcase. Can someone explain to me why this would happen? If I remove the drain plug, and pour oil into the tank, shouldn’t it pretty much go straight through the crank case and run out of the drain?

I put a new oil filter on and the drain plug back in and put 3.5 quarts in but none of the oil has drained into the crank case. If I check the dip stick, it shows way over full so I know all of the oil is just sitting there in the tank. I am afraid to start it in this state.

Any help would be appreciated. I am concerned that there is something seriously wrong with this thing.

Seth