Section 6.35 Federal Tax Lien

• Library: Creditors' Remedies (2009 Ed. + 2014 Supp)

2. (§6.35) Federal Tax Lien

A lien for unpaid federal taxes arises upon assessment and continues until the liability is paid or becomes unenforceable because of the passage of time. I.R.C. §§ 6321 and 6322. The lien encumbers all of the delinquent taxpayer's real and personal property rights. Pronto Enters., Inc. v. United States, 188 B.R. 590, 594 (W.D. Mo. 1995) (filed federal tax lien has priority over subsequent state tax lien).

The lien arises upon assessment without filing. Consistent with the priority usually given a perfected over an unperfected interest, an unfiled tax lien is invalid against a perfected security interest, mechanic's lien, judgment...