Friday, October 5, 2012

Government May Attach Lien to Half-Interest in Property Held in Tenacy by the Entirety.

The U.S. Court of Appeals for the Sixth Circuit, on Aug. 6, affirmed a district court's judgment that concluded that the government's federal tax lien that arises by operation of law in “all property and rights to property” of a delinquent taxpayer (26 U.S.C. 6321) attaches to the rights of that taxpayer in property held in a tenancy by the entirety. 

The district court found that the United States was entitled to attach a federal tax lien to Mr. Porath’s interest in one-half of the property in order to satisfy his unpaid tax obligations. The Poraths argue that the district court erred by (1) concluding that a 1987 postnuptial agreement between the Poraths did not demonstrate a present intent to convey Mr. Porath’s interest in the marital home to Mrs. Porath and (2) determining that the 1991 transfer of the marital property from Mr. Porath to Mrs. Porath via a quitclaim deed was carried out in order to hinder the collection of a debt. For the reasons that follow, we affirm. 

If you have a Tax Lien or Tax Levy, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).

Source:USA V. GEORGINA M.PORATH and GORDON H. PORATH, U.S. Court of Appeals for the Sixth Circuit, No. 11-1428, August 5, 2012


1 comment:

  1. The half interest can be financed by the other owner and pay-off the tax debtor's rights and secure a Notice of Federal Tax Lien Discharge on the property. Have seen this in Los Angeles Area. And, it will depend on the state law where the property is located whether it would be a problem with the tenancy in common or entirity.

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