Daily Tax Report ®

Court Says Federal Rights Trump States’ in $18 Million Tax Fight

Jan. 14, 2020, 7:24 PM

A Utah man owing $18 million in unpaid taxes can’t get back two properties on which the government placed liens because state-created rights don’t apply in federal tax lien proceedings, a Tenth Circuit panel ruled.

The IRS in 2008 placed liens on 15 properties that belonged to John Worthen’s alter egos or nominees, according to the Tuesday opinion from a three-judge panel. The panel affirmed the U.S. District Court for the District of Utah Salt Lake City, which had granted the government summary judgment.

Worthen claimed that under Utah law he had the...

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