Opinion ID: 527542
Heading Depth: 2
Heading Rank: 3

Heading: The Claims of the State

Text: 78 For reasons similar to those prompting our rejection of the IRS's claim of priority against Wilkis under 26 U.S.C. Sec. 6321, see Part II.A.2. above, we reject the claims of the State to priority on its claims against the assets disgorged by Levine and Wilkis. New York law provides that a lien in favor of the State attaches to a taxpayer's property, following the satisfaction of several preconditions, including notice, demand, and the filing of a warrant with the appropriate county clerk. N.Y.Tax Law Secs. 692(b)-(d) (McKinney 1987). As indicated in Parts I.A. and I.C. above, the State's liens attached in late 1987, long after the transfers of assets by Levine and Wilkis to the receiver. Since Levine and Wilkis no longer had any property rights to the transferred assets at the time the State's liens attached to their property, the liens attached only to such property as those individuals retained, not to the assets they had disgorged.