Anna Lee Locke - Page 14

                                       - 14 -                                         
               (3) the decedent (or the decedent's estate) made the                   
          transfer without receiving a reasonably equivalent value in                 
          exchange for the transfer; and                                              
               (4) the debtor was insolvent at the time of the transfer or            
          became insolvent as a result of the transfer.                               
               Additionally, a transferee cannot be held liable for the tax           
          of a transferor beyond the value of the assets received from the            
          transferor.  Yagoda v. Commissioner, 39 T.C. 170, 185 (1962),               
          affd. 331 F.2d 485 (2d Cir. 1964).  Therefore, respondent must              
          prove the actual value of the assets received rather than merely            
          showing that petitioner received assets of some value.  Moran v.            
          Commissioner, 45 T.C. 528, 529-530 (1966); Scott v. Commissioner,           
          T.C. Memo. 1986-566.                                                        
               Respondent contends that the decedent owed respondent a debt           
          based on the decedent's liability from the EXOCO partnership.               
          Petitioner argues that the decedent did not owe a debt to the               
          respondent because the respondent violated the procedural                   
          requirements of TEFRA and therefore the notice was invalid.  As             
          discussed above, the IRS did not violate the procedural                     
          requirements of TEFRA, the notice was not invalid, and, in                  
          accordance with the final decision of this Court in the                     
          partnership proceeding, which gave rise to the computational                
          adjustment assessed against the decedent, the decedent owed a               
          debt to the IRS.                                                            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011