Case: Claim of Priority Related to Tax Debt Did Not Have to Be Filed Under Tax Lien Act, Defendant’s Motion of Dismiss Denied (D. Md.) (IRC §6321)

The government adequately stated a claim for relief under 31 U.S.C. §3713 (the Priority Statute), a district court held, denying Defendant’s motion to dismiss. The government alleged that Defendant, the president of an insolvent company, was personally liable for the company’s tax liability due to transferring the company’s available funds to third parties with inferior claims. The court rejected Defendant’s argument that any claim of priority related to a tax debt had to be filed under I.R.C. §6321 et seq. (the Tax Lien Act). Moreover, the fact that Defendant was issued a notice of deficiency stating the company’s tax ...