- 10 -
Romani, 523 U.S. 517 (1998); 42 Pa. Cons. Stat. sec.
4303(a)(1995). Here, the stipulated facts reveal only that two
judgments were entered against Mr. Johnson.6 On this record, we
are unable to find that either Benton Dental or Ms. Johnson was a
"judgment lien creditor" within the meaning of section 6323. The
Estate of Romani case is inapposite,7 and we hold Ms. Johnson is
personally liable as a fiduciary to the extent of $30,000.
Finally, petitioner contends that, if Ms. Johnson is liable,
that liability is capped at the value of the assets transferred
and may not extend to interest beyond that cap. Respondent
contends Ms. Johnson is liable for interest on the obligation
6The regulations specifically provide the judgment creditor
must comply with local law for creating and perfecting
(recording) the judgment in order to be a "judgment lien
creditor" entitled to priority over a recorded tax lien. See
sec. 301.6323(h)-1(g), Proced. and Admin. Regs.
7Even if each judgment creditor had recorded the judgment
when it was obtained, respondent would still prevail under the
holding in United States v. Estate of Romani, supra, as to taxes
for 1979, 1980 and 1981. Prior to all disbursements at issue,
respondent properly filed notices of Federal tax lien for those
years. The liens for 1979 and 1980, were properly refiled under
sec. 6323(g)(3) and were still valid when the two judgments were
issued. As to 1981 taxes, respondent did not refile the lien,
but the original lien remained unexpired and in effect as of when
the judgments were obtained. The collection statute was stayed
for more than 4 years while Mr. Johnson was in bankruptcy. See
sec. 6503(h). Further, Congress extended the collection statute
of limitations from 6 years to 10 years in 1990. See Ominibus
Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11317(b)
and (c), 104 Stat. 1388, 1388-458 (1990)(with retroactive effect
for taxes assessed on or before Nov. 5, 1990, if the collection
statute was otherwise still open).
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