TAXATION-LIENS-NATURE OF FEDERAL ESTATE TAX LIEN

Authors

David D. Ring, University of Michigan Law SchoolFollow

Abstract

At the time of his death, decedent owned certain land in fee simple. His executrix, authorized by an order of the probate court, sold the land to herself as an individual. Subsequently, the United States began condemnation proceedings against the land, paying an award into court. Before distribution of this award was ordered, the executrix in her individual capacity and as ostensible owner was permitted in accordance with statute to withdraw a part of this award. The withdrawal was made without prejudice to her right to the remainder if it proved more than sufficient to satisfy the claims of other parties in interest, and without effect on her duty to refund if it proved inadequate. The United States then filed a petition for distribution of the award, naming with the executrix, as possible parties in interest, the Commissioner and Collector of Internal Revenue, on the ground that a lien for unpaid federal estate taxes might have attached. In answering, the commissioner asserted such a lien on an amount in excess of that part of the award remaining in court. The district court concluded that the sale of the land to the executrix had not divested the lien and that she was therefore liable to refund an amount sufficient to satisfy the claim of the United States. On appeal by the executrix, held, affirmed. Smythe v. United States, (C.C.A. 1st, 1948) 169 F. (2d) 49.

Recommended Citation

David D. Ring, TAXATION-LIENS-NATURE OF FEDERAL ESTATE TAX LIEN, 47 Mich. L. Rev. 285 (1948).
Available at: https://repository.law.umich.edu/mlr/vol47/iss2/20