Court Opinion

ID: 9487140
Source: CourtListenerOpinion
Date Created: 2023-08-05 12:09:09.149183+00
Date Added: 2024-06-11T17:52:06.919275
License: Public Domain

ATKINS, Senior District Judge,
concurring:
I concur in the judgment. I believe that adopting the “hypothetical judgment lien creditor test,” as pronounced by the Seventh Circuit in Dragstem v. Obermeyer, 549 F.2d 20 (7th Cir.1977), is in keeping with both the purpose and the language of the Federal Tax Lien Act.
However, I feel compehed to comment that the facts of this case make it particularly difficult to apply that rule here. The Internal Revenue Service (“IRS”) not only knew that the mortgage had been mistakenly recorded as satisfied, but it conducted itself as if the mortgage had not been satisfied. It was merely fortuitous that the IRS tax lien was routinely filed after the mortgage was erroneously recorded as satisfied, but before the mistake could be corrected.
Nevertheless, in the interest of articulating a clear rule in this circuit regarding the status of federal tax liens, I agree that the IRS tax lien here should take priority over Secor’s mortgage. Therefore, I concur in the judgment reversing the district court.