United States v. Kings County Iron Works, Inc.

CLARK, Chief Judge.

This appeal by the United States involves the relative priority of a federal tax lien and a mechanic’s lien under state law. The defaulting taxpayer, Preferred Contractors, Inc., had performed contracting services on premises in New York City for Standard Tinsmith & Roofer Supply Corporation for which it had not been fully paid. When the United States sought to assert its statutory lien under I.R.C. § 3670 on this debt, it was informed that Standard was Folding the sum in trust for Kings County Iron Works, Inc., a subcontractor of Preferred, which claimed a mechanic’s lien.…