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taxes resulting from the transfer of the Alhambra
property.
Petitioner asserts that the period of limitations
for filing fraudulent conveyance actions under
California's UFTA expired before the issuance of the
notice of transferee liability. Respondent maintains that
the Federal Government is not bound by State statutes of
limitations under the rule in United States v. Summerlin,
310 U.S. 414 (1940). Petitioner counters that the period
of limitations in California's UFTA is not a statute of
limitations, but rather is an element of the cause of
action, which provides for the complete extinguishment of
the fraudulent conveyance claim if the time limit is not
satisfied, relying on United States v. Vellalos, 780 F.
Supp. 705 (D. Haw. 1992), appeal dismissed 990 F.2d 1265
(9th Cir. 1993).
1. Held: Respondent has established that the
Alhambra property was fraudulently conveyed under
California law.
2. Held, further, respondent is not bound by the
limitations period in California's UFTA. United States
v. Summerlin, supra, applied.
3. Held, further, respondent issued petitioner a
notice of transferee liability within the limitations
period for assessments prescribed by sec. 6901(c), I.R.C.
Willard D. Horwich, for petitioner.
Robert H. Schorman, Jr., for respondent.
JACOBS, Judge: By means of a notice of transferee liability
dated August 2, 1996, respondent determined that petitioner is
liable under section 6901 as a transferee of property from Jaussaud
Enterprises, Inc. (hereinafter referred to as Jaussaud Enterprises
or the corporation), for unpaid Federal corporate income taxes and
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