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Riffe's assets or as a successor transferee of Mrs. Pert's
assets.
A. Background
1. Transferee Liability
The Commissioner may collect unpaid income taxes of a
transferor of assets from a transferee or a successor transferee
of those assets. Sec. 6901(a), (c)(2); Commissioner v. Stern,
357 U.S. 39, 42 (1958); Stansbury v. Commissioner, 104 T.C. 486,
489 (1995), affd. 102 F.3d 1088 (10th Cir. 1996). Petitioners
bear the burden of proving that the transferor is not liable for
tax and additions to tax. Sec. 6902(a). In accordance with our
holding in Pert v. Commissioner, supra, Mr. Riffe and Mrs. Pert
are liable for the tax and additions to tax in the amounts set
forth in the stipulated decision in docket No. 15214-91 and in
the closing agreements with respondent.
The Commissioner bears the burden of proving that a taxpayer
is liable as a transferee. Sec. 6902(a); Rule 142(d); Gumm v.
Commissioner, 93 T.C. 475, 479-480 (1989), affd. without
published opinion 933 F.2d 1014 (9th Cir. 1991). State law
generally determines the extent of a transferee's liability.
Commissioner v. Stern, supra at 45; Gumm v. Commissioner, supra
at 479. We apply Florida law in deciding whether petitioners are
liable as transferees under section 6901 because all of the
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