Horton Dairy, Inc., and First National Bank of Conway, Appellees/cross-Appellants v. United States of America, Appellant/cross-Appellee

HANSEN, Circuit Judge.

This action originated as a wrongful levy suit initiated by Horton Dairy, Inc. (HDI) and the First National Bank of Conway (the Bank). The Internal Revenue Service (IRS) levied upon property held by HDI and in which the Bank claimed a secured interest in order to satisfy the tax liabilities of HDI’s majority shareholders, Jack and Arlene Horton (the Hortons). At trial the district court found the levies to be valid, holding that HDI was merely the Hortons’ alter ego and that the Bank had not properly perfected its interest in HDI’s property. The district court further…