A Framework for Determining Priority of Tax Liens Pursuant to Section 6323: Amato v. United States
In Amato v. United States, the U.S. District Court for the District of Idaho held that a real estate purchaser’s interest in property had priority over a prior perfected judgment lien creditor’s interest and the federal government’s tax lien. As a matter of Idaho law, the real estate contract was a valid agreement based on the doctrine of partial performance. The conveyance gave the purchaser a superior interest against the United States and the judgment lien creditor because it predated those competing interests by approximately five years.Part I of this Note provides a brief history of section 6323 and discusses the difficulties in determining relative lien priority. Part II outlines the factual background of Amato and the reasoning employed by the District Court. Part III concludes that the court failed to articulate its reasoning in a manner consistent with section 6323.