## Facts

- Douglas A. and Cathy E. Eschenbach filed a Chapter 13 petition in the Northern District of Texas on October 2, 2000.
- While residing in Martin County, Florida, the IRS filed a notice of federal tax lien on September 22, 1997 for 1994 and 1995 income taxes, stating it applied to real and personal property.
- After the lien filing, the debtors moved to Tarrant County, Texas.
- The IRS filed a proof of secured claim for unpaid 1995 taxes totaling $5,906.12 as of the petition date.
- The debtors’ schedules valued their personal property at more than $5,906.12, supporting the IRS’s position that the claim was fully secured.
- The debtors objected, stipulating the lien covered the personal property they owned in Florida and that it followed that property to Texas, but arguing the lien did not cover personal property acquired in Texas after the move.
- The debtors asserted only $3,000 of value (property acquired while in Florida) should be treated as secured and the balance as unsecured under 11 U.S.C. § 506(a).
- The court held an evidentiary hearing and decided the allowance and secured status of the IRS claim as a core matter.

## Issues

1. Whether a federal tax lien, properly noticed in the county of the taxpayer’s residence at the time of filing, attaches to personal property the taxpayer acquires after moving to another state.
2. Whether the IRS was required to refile a notice of federal tax lien in the new state to maintain secured status as to the debtors’ after-acquired personal property.
3. Whether, under 11 U.S.C. § 506(a), the IRS claim should be treated as fully secured or partially unsecured based on the lien’s reach.

## Decision

- The court overruled the debtors’ objection to the IRS proof of claim.
- The court held the properly filed federal tax lien attached to all of the debtors’ personal property, including after-acquired property obtained in Texas after relocation.
- The IRS claim of $5,906.12 for 1995 income taxes was allowed as fully secured because the debtors’ personal property value exceeded the claim amount as of the petition date.

## Legal Principles

- Under 26 U.S.C. § 6321, a federal tax lien reaches “all property and rights to property” of the taxpayer and includes after-acquired property.
- A federal tax lien, once arising and properly noticed, continues until the liability is satisfied or otherwise becomes unenforceable.
- Under 26 U.S.C. § 6323(f), perfection as to personal property is accomplished by filing notice in the jurisdiction tied to the taxpayer’s residence at the time of filing.
- The Internal Revenue Code does not require the IRS to refile a notice of federal tax lien solely because the taxpayer moves to another county or state to maintain attachment to the taxpayer’s personal property, including after-acquired property.
- In bankruptcy, the secured portion of a tax claim under 11 U.S.C. § 506(a) is determined by the value of the debtor’s property subject to the lien as of the petition date.

## Conclusion

A federal tax lien properly noticed where the taxpayer resided when filed attaches to the taxpayer’s personal property generally, including property acquired after an interstate move, so the IRS’s tax claim was treated as fully secured in the Chapter 13 case.


In re Eschenbach, 267 B.R. 921 (Bankr. N.D. Tex. 2001)