County of Spokane v. United States, 279 U.S. 80 (1929)

CERTIORARI TO THE SUPREME COURT OF WASHINGTON

Syllabus

1. Congress has power to provide that taxes due to the United States by an insolvent debtor shall have priority in payment over taxes due by him to a state. Pp. 86-93.

2. Under Rev.Stats. § 3466, a debt owed to the United States in the form of income taxes and penalties assessed for former years after the taxpayer has become insolvent and his personal property has been taken by a receiver in a state court for the payment of his debts is entitled to payment out of the fund derived by the receiver from his sale of such property, with priority (1) over county taxes assessed on those funds after the federal assessments were made and (2) over county taxes assessed on personal property of the taxpayer before the appointment of the receiver but not shown to be supported by a specific lien under the state law. P. 93.

147 Wash. 176 affirmed.

Certiorari, 278 U.S. 585, to review a Judgment of the Supreme Court of Washington which, reversing a state court of first instance, upheld a claim of the United States for payment of income taxes and penalties from funds in the hands of a receiver, in priority over claims for county taxes.