- 11 -
Pursuant to section 6321, the Government of the United
States obtains a lien against “all property and rights to
property, whether real or personal” of any person liable for
taxes when a demand for payment of that person’s taxes has been
made and that person neglects or refuses to pay those taxes.
Section 6322 provides that such lien arises automatically on the
date of the assessment and continues until the tax liability is
satisfied or the statute of limitations bars enforcement of the
lien.
Federal tax liens are not extinguished by personal discharge
in bankruptcy. 11 U.S.C. sec. 522(c)(2)(B) (2000); see also
Johnson v. Home State Bank, 501 U.S. 78, 84 (1991). A discharge
of personal liability in bankruptcy “extinguishes only one mode
of enforcing a claim--namely, an action against the debtor in
personam--while leaving intact another--namely, an action against
the debtor in rem.” Johnson v. Home State Bank, 501 U.S. at 84.
Any existing Federal tax liens remain in effect and attach to
assets owned prior to the date of filing the bankruptcy petition.
11 U.S.C. sec. 522(c)(2)(B) (2000); In re Connor, 27 F.3d 365,
366 (9th Cir. 1994) (“A preexisting lien on property, however,
remains enforceable against that property even after an
individual’s personal liability has been discharged.”).
The attachment to the notice of determination states that
“The debtor’s [petitioner’s] schedules [attached to his
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011