United States v. Palmer

The Internal Revenue Service (IRS) appeals from a judgment denying it lienor status in the estate of Monarch Industries, Inc. (taxpayer).1 Prior to the filing of taxpayer’s petition in bankruptcy, the IRS assessed a deficiency and demanded payment. Apparently recognizing that the pre-petition assessment and demand, without more, perfected a lien in favor of the IRS, see I.R.C. § 6321; United States v. Speers, 382 U.S. 266, 86 S.Ct. 411,15 L.Ed.2d 314 (1965), the district court nonetheless held that the lien was invalid as against the bankruptcy trustee because the IRS had failed to file…