Tax Lien Enforceable Against Estate’s Property (Mengedoht, DC Neb.)

A tax lien for unpaid estate tax was enforceable against an estate’s property. The estate did not file a federal estate tax return, but a delegate of the Secretary of the Treasury assessed federal estate tax, penalties and interest against the estate. The assessed tax was based on the date-of-death value of the decedent’s property, which largely consisted of one parcel of real estate. A default judgment was entered against the decedent’s estate and trust that held title to the property. As a result, the estate and trust could not claim that either entity had an interest that would have priority to the tax liens. The executor and trustee, in his individual capacity, did not establish that he had an interest in the property. The tax lien arose on the day that the estate tax was assessed and attached to all of the estate’s property. As a result, the lien was enforceable in accordance with Code Sec. 7403.

J.M. Mengedoht, DC Neb.

Other References:

Code Sec. 6321

CCH Reference – FINH ¶20,945.30

Code Sec. 7403

CCH Reference – FINH ¶22,240.75

Tax Research Consultant

CCH Reference – TRC IRS: 48,212

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All stories by: CCHTaxGroup