6.1.d.2 Fourth Step - Recording The Lien

• Jurisdiction: United States

2. Property subject to lien

Section 6321 of the Internal Revenue Code provides:

If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such person.

In addition to the obvious kinds of property that a taxpayer may have such as real estate and tangible personal property, the lien reaches other kinds of assets as well.

Held, depositor's claim against bank for deposited funds constituted a "right to property" subject to federal tax levy; United States. v Central Bank of Denver, 843 F.2d 1300 (10th Cir. 1988)(broker's earned but unpaid commission...