This Daily Tax Tip Spotify Podcast and/or WordPress Blog Post discusses when an IRS Lien Has Priority over a Homeowner’s Association Lien.
In Shirehampton Drive Trust v. Department of Treasury, 2020 PTC 347 (9th Circuit 2020), the Ninth Circuit affirmed a district court and held that IRS tax liens placed on a delinquent taxpayer’s condominium have priority over a homeowner’s association (HOA) lien because the HOA lien was not perfected at the time that the IRS recorded its notice of tax liens.
The court rejected the HOA’s assertion that its lien became choate as soon as the taxpayer failed to make an on-time payment because, the court noted, the relevant date for choateness purposes is the date of the first administrative step and the HOA took no administrative step to establish the lien until after the IRS recorded its notice of tax liens.
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TB 11/03/2020 408-239