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1. Timeliness of Notices of Donee/Transferee Liability
Petitioners argue that the Commissioner issued the notices
of donee/transferee liability after the limitations period
expired. We hold that the notices were timely.
Section 6901(a)(1)(A)(iii) provides that the liability of a
transferee of property shall be assessed and collected in the
same manner and subject to the same limitations as the liability
of the donor. In accordance with section 6901(c), the period of
limitations for assessment against an initial transferee "shall
be * * * within 1 year after the expiration of the period of
limitation for assessment against the transferor". And section
6901(h) defines "transferee" as including a donee. Moreover,
petitioners have already stipulated that they are transferees.
Therefore, the period of limitations for assessment applicable to
petitioners expired 1 year after the expiration of the donor's
limitations period. In order to decide whether an assessment
2(...continued)
654 (1994), this Court denied Joseph's motion and held that IRS
collection efforts pursuant to sec. 6324(b) are not otherwise
subject to the normal deficiency procedures set forth in secs.
6211 through 6216.
Joseph's petition for redetermination is currently set for
trial in Richmond, Virginia, on Jan. 22, 1996. Of course, if
Joseph is found to be liable as a donee/transferee, and if he
pays the amount so determined, petitioners herein might be
relieved of liability of all or at least a portion of the $93,300
for which we have found them liable, depending upon how much
Joseph pays.
Also, we do not express any view as to the rights of
petitioners and Joseph inter sese.
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