Criminal Restitution Order Is Like A Tax Lien

United States v. Ervin 2022 U.S. Dist. LEXIS 7344 (N.D. Ind. 2022) dealt with a criminal conviction and resulting order to pay restitution.

Why is a criminal case the subject of a post on Indiana Commercial Foreclosure Law? Because the Court’s opinion reminds us that a "restitution order is a lien in favor of the government on 'all property and rights to property' of the defendant and is treated as if it were a tax lien." United States v. Sayyed, 862 F.3d 615, 618 (7th Cir. 2017) (quoting 18 U.S.C. § 3613(c)).

The Court further stated that “while there is certain property that is exempt, the statutory language applies broadly and is intended to reach every interest in property that a taxpayer might have.” Thus, a restitution order permits the government to "step[] into the defendant's shoes" and acquire his or her rights to property.

Who enforces the lien arising out of a restitution order? Federal law empowers the United States Attorney’s Office to do so. 18 U.S.C. § 3613.

I’ve written about tax liens on several occasions. Here are links to a few of those posts:

• Reinstated Federal Tax Liens On Property Owned Pre-Bankruptcy
• Subsequent Federal And State Income Tax Liens: Priority And Redemption
• Lender And IRS Battle Over Rental Income

Happy St. Patrick’s Day,

John
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I represent parties involved in real estate and loan-related disputes. If you need assistance with a similar matter, please call me at 317-639-6151 or email me at [email protected]. Also, don’t forget that you can follow me on Twitter @JohnDWaller or on LinkedIn, or you can subscribe to posts via RSS or email as noted on my home page.