The Good, the Bad, and the Ugly in Post-Drye Tax Lien Analysis

The general federal tax lien attaches to "all property and rights property, whether real or personal" which belong the delinquent taxpayer. In most cases in IRS takes enforced collection action based on its lien, there is little doubt that pursuing constitutes "property [or] property." easiest cases, of course, are those fee simple owner realty personalty. typically goes after such assets first because obviously them they relatively easy convert into cash pay liability. If unavailable have been exhausted, may pursue items involving less than ownership. As it does so, question arise constitute rights. Supreme Court has repeatedly stressed language section 6321 "is broad reveals face Congress meant reach every interest a taxpayer might have. Despite this expansive construction, controversies as perennial. Whether given property" for purposes litigated hundreds cases.The challenging these involve one more three situations. First, taxpayer's not yet ripened (and never ripen) full possession control underlying property. A continuum exists from mere hope, expectancy, contingent interest, present possessory interest. Second, be shared with others. It undivided individual, joint single, fractional. Third, restrictions exist, under instrument governing state law, ability use dispose creditors it. diverges ownership, situations, likely an argument attach