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Case: Suit to Vacate Tax Lien Properly Dismissed (6th Cir.) (IRC §6321)

March 7, 2022, 5:00 AM

IRS and bank’s settlement after foreclosure sale did not put a “fraud on the court” to warrant the tax lien being set aside, the Sixth Circuit Court of Appeals held in affirming the district court’s dismissal. The IRS placed a lien on Taxpayer’s property for unpaid federal taxes. Because Taxpayer was delinquent on his mortgage, the bank foreclosed on the property, selling it with the liens still attached. IRS was not notified of the sale. The IRS sued Taxpayer and Bank to enforce its liens. Before that case was dismissed, the IRS and Bank entered into a settlement agreement where ...