Law Commons^™

Why Craft Isn't Scary, Steve R. Johnson

Scholarly Publications

In April 2002, the Supreme Court of the United States decided United States v. Craft. The Court held that the federal tax lien attaches to a tax-debtor spouse’s interest in property held in tenancy by the entirety even when the other spouse does not owe tax and state law provides that entireties property and interests cannot be reached by separate creditors of only one spouse.

Craft was correctly decided. The older, contrary view that Craft displaced was fundamentally at odds with federal tax collection analysis as laid out by the Court. In addition, the old view invited tax abuse and …