- 9 - in applicable State law. Commissioner v. Stern, 357 U.S. 39, 45 (1958) (interpreting section 311 of the Internal Revenue Code of 1954, a predecessor to section 6901). However, section 6901(h) defines the term "transferee" to include a "donee, heir, legatee, devisee, and distributee, and with respect to estate taxes, also includes any person who, under section 6324(a)(2), is personally liable for any part of such tax." Sec. 6901(h); sec. 301.6901- 1(b), Proced. & Admin. Regs. The Commissioner has the burden of proving the elements necessary to establish a taxpayer's liability as a transferee of property of a decedent's estate, but the Commissioner does not have the burden to establish the amount of the liability of the transferor. Sec. 6902(a);4 Rule 142(d). If the Commissioner meets the burden of proof, the transferee is liable for the transferor's estate tax to the extent of the value of the assets transferred. Respondent has conceded that petitioner is not a "donee, heir, devisee, [or] distributee" of decedent or decedent's estate, and all the assets of decedent's estate ultimately were transferred and distributed to Charles L. Govern II, decedent's son. Accordingly, to successfully assert transferee liability 4SEC. 6902. PROVISIONS OF SPECIAL APPLICATION TO TRANSFEREES. (a) Burden of Proof.--In proceedings before the Tax Court the burden of proof shall be upon the Secretary to show that a petitioner is liable as a transferee of property of a taxpayer, but not to show the taxpayer was liable for the tax.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011