Given the downward pressure on commercial real estate valuations in many areas, and the increasing likelihood that owners of real property will cease paying real property taxes when there is
Real Property Sale Proceeds Must Be Used to Pay Unavoided Portion of IRS Tax Lien First
Given the downward pressure on commercial real estate valuations in many areas, and the increasing likelihood that owners of real property will cease paying real property taxes when there is no longer any equity, this article reports on a recent Ninth Circuit decision 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.

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