The opinion of the court was delivered by: FOLLMER
In this action plaintiff Keystone Mercantile Corporation (hereinafter called 'Keystone'), seeks to recover from the District Director of Internal Revenue (hereinafter called 'Director'), the sum of $ 4,050.29 presently held in a suspension account pending an adjudication of the rights of the respective parties to the said fund.
The parties filed certain stipulations which in pertinent part may be briefly summarized as follows:
Taxpayer Jersey Shore Manufacturing Corporation (hereinafter called 'Jersey Shore') entered into various conditional sales contracts for the purchase of certain machinery and equipment as follows, to wit:
(1) On November 5, 1952 with Ginsberg Machine Co., Inc.
(2) On March 26, 1953 with Hutkin Company.
(3) On February 4, 1954 with Hutkin Company.
(4) On December 14, 1953 with Singer Sewing Machine Co.
These conditional sales contracts all were duly filed of record in the Office of the Prothonotary of Lycoming County, Pennsylvania.
Being unable to meet its commitments under the four conditional sales contracts, Jersey Shore arranged with plaintiff, Keystone, for financing the same, whereby Keystone did on and after July 1954 advance sufficient funds for the payment in full of the several debts. Under date of December 14, 1954, Jersey Shore assigned all of its right, title and interest in the several conditional sales contracts to Keystone, but up to and including April 15, 1955 none of the said assignments had been recorded.
Prior to July 12, 1954 (the time at which plaintiff contends it advanced funds to Jersey Shore to be applied against Jersey Shore's indebtedness arising from its defaults on the various conditional sales contracts), the Commissioner of Internal Revenue made various assessments against the conditional vendeetaxpayer (Jersey Shore) for which notices of Federal tax liens in the amount of $ 93,265.71 were duly filed in the Office of the Prothonotary, Lycoming County, Pennsylvania, in accordance with 26 U.S.C. § 6323(a)(1). n1 An additional notice of Federal tax lien in the amount of $ 11,223.35 was duly filed in the Office of the said Prothonotary on October 20, 1954.
As above indicated, the assignments of the several conditional sales contracts were not made by taxpayer to plaintiff at the time plaintiff advanced funds to the conditional vendee-taxpayer as alleged.
The pertinent Federal statutes are as follows:
26 U.S.C. (1946 Edition) ' § 3670. Property subject to lien.
'If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, penalty, additional amount, or addition to such tax, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to ...