Court Opinion

ID: 9454651
Source: CourtListenerOpinion
Date Created: 2023-08-04 18:53:43.081429+00
Date Added: 2024-06-11T17:34:13.378107
License: Public Domain

PHILLIPS, Circuit Judge
(concurring in part, dissenting in part).
I agree that the federal taxes which became due and owing in the three years from 1953 to 1956 would be entitled to priority of payment under § 64a(4) of the Bankruptcy Act, if they were not secured by valid tax liens. Accordingly, I concur in that part of the decision which holds that the judgment of the District Court with respect to the priority of the claim of the United States for the taxes which became due and owing in the three years prior to bankruptcy should be affirmed.
I dissent from the majority decision to the extent that it reverses the judgment of the District Court with respect to the Government’s liens for the claims in question. The Attorney General of Michigan had ruled that the form of notice of tax liens in use by the Internal Revenue Service should not be accepted for recordation by the county register of deeds of Michigan counties. My understanding is that the same form of notice of lien was used whether real estate or personal property was involved. In the face of the opinion of the Attorney General of Michigan and the practice of *374county registers of deeds in complying with this opinion, and attempt on the part of the Government to have had the tax liens here in question recorded in the office of the county register of deeds would have been futile. Under these circumstances notices of the liens were filed in the office of the clerk of the United States District Court as provided by 26 U.S.C. § 6323. In my opinion this was the proper place to file notice of the tax liens.
I agree with the majority opinion that United States v. Estate of Donnelly, 406 F.2d 1065 (6th Cir.), affirming 295 F.Supp. 557 (E.D.Mich.), petition for certiorari filed May 10, 1969, 37 U.S.L.W. 3444, is distinguishable from this case since the rights of a bona fide purchaser were involved in that case and the Government’s filing of its lien took place before the issuance of the opinion of the Attorney General of Michigan.
I would affirm the judgment of the District Court in all respects.