The Mutual Life Insurance Company of New York v. United States

MERRILL, Circuit Judge:

This case presents for our consideration problems resulting from the levy by a District Director of Internal Revenue upon a life insurance policy of a delinquent taxpayer, with a demand upon the insurer for payment of the policy’s cash surrender value. The United States has brought this action for foreclosure of tax lien 1 against the taxpayer, Albert Salerno, a resident of Las Vegas, Nevada, and against appellant which had, in 1951, issued a policy of insurance upon Salerno’s life.

Notice of Tax Lien in favor of the Government against all of taxpayer’s property was…