United States v. The Valley National Bank, of the Estate of Maurice H. Berkson, Deceased

The United States appeals from a judgment in favor of two banks in a contest among creditors claiming interests in broker’s commissions earned by a taxpayer during his lifetime and assigned to a bank. We affirm.

The commissions at the time of trial had a value of $83,702.87. The taxpayer’s estate is insolvent. The government bases its claim of first priority on two income-tax assessments for the year 1966. The first assessment, dated October 27, 1967, was for $25,980.64 plus interest. The notice of a tax lien for this assessment was filed on February 29, 1968. The second assessment, dated June 14, 1968 was for $15,211.69 plus interest. The second notice was filed December 30, 1970.

On February 22, 1966, approximately two years before the first notice of tax lien was filed, the taxpayer assigned the so-called “Tucson” commission to the predecessor in interest of appellee Great Western Bank & Trust as security for all the taxpayer’s existing and future indebtedness. On January 30, 1967, approximately one year before the first notice of tax lien was filed, the taxpayer assigned the sb-called “Phoenix” commission to Great Western’s predecessor as security for all the…