Wendy Pitts v. United States

MEMORANDUM

Wendy Pitts appeals the district court’s judgment, affirming the bankruptcy court, in Pitts’s adversary proceeding seeking to discharge federal tax liens. We review the district court’s decision on appeal from a bankruptcy court de novo, and we affirm. Barrientos v. Wells Fargo Bank, N.A., 638 F.3d 1186, 1188 (9th Cir. 2011).

Pitts was a general partner in D I R Waterproofing, and the United States liened Pitts’s personal property after DIR failed to pay trust fund and employment taxes assessed against DIR. Pitts concedes that, as a general partner, she is liable for the partnership’s debts under state law. She argues, however, that the United States may not use administrative enforcement procedures against her — instead, because her liability arises from state partnership law, the United States is confined to remedies under state law. We disagree.

First, pursuant to the plain language of 26 U.S.C. § 6321 , Pitts is a “person liable to pay any tax,” and a lien in favor of the government arises by operation of federal law. See In re Crockett, 150 F.Supp. 352, 354 (N.D. Cal. 1957) (California partner was liable for debts of partnership under state law; accordingly,…