- 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