Opinion ID: 728862
Heading Depth: 1
Heading Rank: 2

Heading: Superiority of the federal tax lien

Text: 9 As a threshold issue, we are satisfied with the District Court's determination that the seized property was property acquired after the federal tax lien was filed. The Coppolas argue that Barclays' lien on the seized property is superior to the federal tax lien because Barclays acquired a perfected security interest in the after-acquired property in 1979, thereby predating the 1986 lien filed by the United States. Appellants' argument is without merit. A federal tax lien filed before a delinquent taxpayer acquires real property has priority over a private creditor's previously filed lien. United States by IRS v. McDermott, 113 S.Ct. 1526, 1530-31 (1993). We reject the Coppolas' attempt to distinguish McDermott on the basis that the lien involved in that case was a judgment lien and not a security interest. Nothing in McDermott limits its analysis to judgment lien creditors. Likewise, nothing in I.R.C. § 6323 and its legislative history, relied on by taxpayers, demonstrates that Congress intended the statute to supplant the Supreme Court's choateness test as applied to security interests, nor distinguishes judgment liens from security interests in any other way relevant to this case. 10