Sills v. USA

E. GRADY JOLLY, Circuit Judge:

Walter G. Sills and his wife, Joyce K. Sills, debtors in a Chapter 13 bankruptcy case, appeal the district court’s affirmance of the bankruptcy court’s judgment in favor of the Internal Revenue Service (the “IRS”) in an adversary proceeding challenging the validity of a tax lien attached to the Sills’ house. The Sills purchased the house with workers’ compensation proceeds from an injury sustained by Walter Sills. We affirm.

I

In 1990, Walter Sills received $180,000 in workers’ compensation proceeds as a result of injuries suffered from a fall while working on an…