- 23 -
D. Liability for Interest
Where the amount transferred to a transferee is less than
the amount of taxes owed by the transferor, State law determines
the extent to which a transferee is liable for interest accrued
prior to the Commissioner's demand for payment. Estate of Stein
v. Commissioner, 37 T.C. 945, 961 (1962). Florida gives
respondent the right to statutory interest on petitioners'
transferee liability. LeBeau v. Commissioner, T.C. Memo. 1992-
359. Under Florida law, prejudgment interest is allowed in cases
involving a liquidated claim. Town of Longboat Key v. Carl E.
Widell & Son, 362 So. 2d 719, 723 (Fla. Dist. Ct. App. 1978).
Mr. Fisher's unpaid tax deficiency and addition to tax for 1991
was $93,030, which was due and owing no later than April 15,
1992. Because the value of the assets transferred to petitioners
was less than this liability, all of respondent's claim against
petitioners became liquidated no later than April 15, 1992.
Petitioners' transferee liability includes accrued interest at
the rate prescribed under Fla. Stat. Ann. sec. 55.03 (West 1988)
from April 15, 1992.
Decision will be entered
under Rule 155.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Last modified: May 25, 2011