Real Property Sale Proceeds Must be Paid First to Unavoided Portion of IRS Tax Lien

Finance and restructuring partner Andrew Kassner and counsel Joseph Argentina coauthored an article for The Legal Intelligencer titled, “Real Property Sale Proceeds Must be Paid First to Unavoided Portion of IRS Tax Lien.” The article discusses the recent decision issued by the Ninth Circuit Court of Appeals that reversed a decision of the bankruptcy court, affirmed by the district court, allocating the distribution of the proceeds of a sale of real property pro rata between the Internal Revenue Service on account of its tax lien, and the bankruptcy estate.

The authors mention that the case reminds practitioners that analysis is required to determine not only whether a lien is avoidable, but who will actually receive the benefit of the successful avoidance of the lien, including whether there will be any actual benefit to the estate. 

The full article is available to The Legal Intelligencer subscribers.