Supreme Court of the United States
Drye v. United States
December 7, 1999528 U.S. 49
Summary
Justice Ginsburg delivered the unanimous opinion holding that Drye’s disclaimer of his inheritance under Arkansas law did not defeat federal tax liens. State law defines the taxpayer’s underlying rights, but federal law determines whether those rights constitute property or rights to property under 26 U.S.C. § 6321. Drye’s power to receive his mother’s estate or channel it to his daughter supplied sufficient control to constitute property subject to the liens, notwithstanding the disclaimer’s retroactive effect and protection against creditors under state law. The Court affirmed the Eighth Circuit’s judgment. There were no separate opinions.
Holding
- The respective roles of state and federal law in identifying property subject to federal tax liens.. State law delineates the taxpayer’s rights and interests; federal law determines whether those rights and interests constitute property or rights to property under the federal tax lien provisions.
- The effect of Drye’s Arkansas-law disclaimer on existing federal tax liens.. Drye’s right to receive his mother’s estate or channel its value to his daughter constituted property or rights to property subject to federal tax liens, which his disclaimer could not defeat.
Docket 98-1101
Cited authorities
- Ark. Code Ann. § 28-2-107
- 26 U.S.C. § 6321
- 26 U.S.C. § 6321
- 26 U.S.C. § 7426
- 26 U.S.C. §6321
- 26 U.S.C. § 6322
- Ark. Code Ann. § 28-9-214
- Ark. Code Ann. §§ 28-2-101
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