- 10 -
Stern, 357 U.S. 39, 42-47 (1958); Hagaman v. Commissioner, 100
T.C. 180, 183 (1993). Section 6901 does not create or define a
transferee's liability. Commissioner v. Stern, supra at 42-43;
Hagaman v. Commissioner, supra. For purposes of this case, the
existence and extent of a transferee's liability, at law or in
equity, is determined by State law.8 Commissioner v. Stern,
supra at 44-45; Hagaman v. Commissioner, supra at 183-185. Thus,
State law determines the elements of liability, and section 6901
provides the remedy or procedure to be employed by the
Commissioner as the means of enforcing that liability. Ginsberg
v. Commissioner, 305 F.2d 664, 667 (2d Cir. 1962), affg. 35 T.C.
1148 (1961). Respondent bears the burden of proving petitioners'
liability as transferees. Sec. 6902(a); Rule 142(d).
Respondent calculated the extent of petitioners' transferee
liability by adding the individual values of the property Mr.
Fisher conveyed to petitioners as follows:
Value as determined
Property by respondent
Real property located at $17,129
6913 Apalachee Parkway less
outstanding mortgage
Mortgage payments made by 55,930
Mr. Fisher, subsequent to
6/6/91, including interest
Checks 14,457
Total $87,516
8There are some situations where the existence and extent of
transferee liability is a matter of Federal law. See, e.g., sec.
6324(a)(2) and (b).
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