Rev. Rul. 60-350

The Internal Revenue Service will not follow the decision of the United States Court of Appeals for the Fifth Circuit in Campbell v. Lema P. Bagley , 276 Fed.(2d) 28.

The taxpayer in this case owned a drilling rig which was located in Winn Parish, Louisiana. Taxpayer lived in Harrison County, Texas, and a notice of Federal tax lien was filed in that county. The Government contended that since the rig was personalty, it had its situs at the owner's domicile in Texas.

The court held, among other things, that the filing of the notice of Federal tax lien at the domicile of the taxpayer was not effective as to tangible personal property physically located in another state.

In so doing, the Court of Appeals distinguished its holding in Grand Prairie State Bank v. United States , 206 Fed.(2d) 217, where it held that a notice of Federal tax lien filed at the domicile of the taxpayer was effective with respect to two diamond rings owned by the taxpayer, but which were physically located at a place other than his domicile. The court in Bagley stated that the Grand Prairie State Bank rationale applied only to personalty which was readily movable or capable of being secreted.

Accordingly, in appropriate cases, the Service will continue to regard the filing of a notice of Federal tax lien at the taxpayer's domicile as effective with respect to all of his personal property, wherever located.

¹ Based on Technical Information Release 260, dated October 17, 1960.