Opinion
NO. CIV. S-07-409 LKK/GGH.
January 7, 2008
ORDER
The court is in receipt of the federal government's motion for summary judgment against defendant/cross-defendant BHSW Enterprises, Inc., which seeks a ruling that the United States' tax liens take priority over the claims of the other parties in the suit. Defendant/cross-complainant Gina Hutchinson aka Gina Cooper has filed a statement of non-opposition.
Failure to pay taxes creates a lien on the taxpayer's real and personal property in favor of the federal government, and this lien remains in force until it is satisfied or it becomes unenforceable. 26 U.S.C. § 6322. Although some liens may take priority over a federal tax lien, 26 C.F.R. § 301.6323, the federal tax lien takes priority over an award of attorney's fees to an interpleading party. Abex Corp. v. Ski's Enterprises, Inc., 748 F.2d 513, 516 (9th Cir. 1984). In order for the lien to be perfected, the government must file a Notice of Federal Tax Lien with the appropriate county reporter. Kivel v. United States, 878 F.2d 301, 303 (9th Cir. 1989).
Here, the government has provided undisputed evidence of the amount of the unpaid tax balance owed by defendant BHSW Enterprises, Inc. It has also provided undisputed evidence that notices of the liens were properly filed with the Solano County Recorder. There is no evidence before that court that there are any other liens that meet the criteria of those that take precedence over the federal tax lien.
Consequently, the United States' motion for summary judgment is GRANTED. The clerk is directed to DISBURSE the interpleader fun and any accrued interest to the United States.
IT IS SO ORDERED.