Bank of America National Trust & Savings Association, a National Banking Association v. United States

J. B. Edmondson in August, 1959, was a customer of the Bank of America at its West Orangethorpe Road office in Fullerton, Orange County, California. Credit balances owed him by the bank on August 27, 1959, which, if there were no liens or set-offs, all would agree, amounted to $6,658.31.

Dating from 1955 to and including August 27,1955, the government (the Internal Revenue Service) had balances due from the bank’s customer Edmondson in excess of eight thousand dollars plus interest on three assessments made in 1955 for deficiencies in taxes for that year, either payroll withholding or F.I.C.A. (i. e. social security) payable in 1955 for the first three quarters thereof. The process of making the assessments, notifying the taxpayer Edmondson of the assessments and filing notices of lien in the recorder’s office of Orange County, California, was all completed by January 28, 1958. Then on August 27, 1959, the date herein mentioned at the outset, the District Director of Internal Revenue served a notice of levy upon the bank upon “all property or rights to property belonging to” Edmondson. Thereafter a final demand was made upon the bank. This was refused and on April 11, 1961, the…