Case Name: FRANK BLACKLOCK, EXECUTOR OF RINALDO P. SMITH, v. THE UNITED STATES
Court: Supreme Court of the United States
Jurisdiction: United States
Decision Date: 1908-01-13
Citations: 43 Ct. Cl. 587
Docket Number: 
Parties: FRANK BLACKLOCK, EXECUTOR OF RINALDO P. SMITH, v. THE UNITED STATES.
Judges: 
Reporter: United States Court of Claims Reports
Volume: 43
Pages: 587–589

Head Matter:
FRANK BLACKLOCK, EXECUTOR OF RINALDO P. SMITH, v. THE UNITED STATES.
[41 C. Cls., 89; 208 U. S. R., 75.]
On the claimant's Appeal.
Internal-revenue taxes are due from one Smith to tbe United States in August, 1869. Subsequently a demand for payment is made by tbe collector. Subsequent to the demand Smith exe cutes a deed of trust in the nature of a mortgage to one Beazeley to secure the loan. Subsequent to the deed of trust the collector distrains upon the mortgaged property and sells it. The United States having bid in the property, through its collector at the tax sale, subsequently sell and convey it to a third party. Beazeley’s representatives then advertise the property for sale, but the sale is stayed by an injunction of a State court. The representatives of the mortgagees now come into court under a special act of Congress conferring jurisdiction to hear and determine the claim of the claimants against the Government “ on account of the sale, purchase, or occupation by the Government, through its internal-revenue officers, or others, of certain real estate," etc.
The court below decides:
I.If any person neglects to pay an internal-revenue tax after demand, the Act of 13th July, 1866 (14 Stat. L., p. 107), declares that “ the amount shall he a lien in favor of the United, States from the time it was due until paid ” “ upon all property and rights to property belonging to such person.” This lien is superior to a mortgage or deed of trust executed subsequently to the demand for payment, and embraces every species of property subject to ownership.
II.The collector, “ after demand, may levy upon all property and rights to property belonging to such person ” “ or on which said lien exists, for the payment of the sum due as aforesaid;" and in all cases of sale, as aforesaid, the certificate of such sale shall transfer to the purchaser all right, title, and interest of such delinquent in and to the property sold." The only condition imposed by the statute upon the collector is that there shall have been a demand for payment and neglect or refusal, after demand, by the taxpayer.
III. A collector, under the act 13th July, 1S86, may levy upon and sell the property; or the Commissioner of Internal Revenue may' direct that a bill in chancery be filed to enforce the lien, under the Act ZOih July, 1868 (15 Stat. L., p. 167). The latter act does not repeal the former.
IV. A tax sale conveys to the purchaser no other interest in the property than that belonging to the delinquent tax debtor at the time the Government’s lien attached. If a third person have a prior lien or interest in the property by mortgage or deed of trust, it will not be destroyed by the sale; and if it be duly recorded, the record will be notice to the purchaser.
V.A mortgagee, or beneficiary under a deed of trust, may protect his security against the prior lien of the Government or may redeem the premises if sold under the act July 13, 1S66.
The decision of the court below is affirmed upon the same grounds.

Opinion:
Mr. Justice Harlan
delivered the opinion of the Supreme Court January 18, 1908.