Opinion ID: 5563
Heading Depth: 2
Heading Rank: 1

Heading: federal tax law

Text: The government does not dispute that, prior to AAI's sale to Dietrich, the Broadlands lien was superior to the tax liens. The parties agree that AAI's sale to Dietrich did not extinguish the tax liens. So the issue here is the priority of those tax liens, not their existence. In determining the priority of federal tax liens, courts must consider the state law of subrogation. See I.R.C. § 6323(i)(2) (Where, under local law, one person is subrogated to the rights of another with respect to a lien or interest, such person shall be subrogated to such rights for purposes of any [federal tax lien].); see also Han v. United States, 944 F.2d 526, 529-31 (9th Cir.1991). Dietrich has priority over the tax liens if, under Texas law, Dietrich is entitled to subrogate to Broadlands's position as senior lienholder.