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1991, clearly indicates taxes owed of $49,683 (which have not been
paid except for a $1,603.76 payment made on August 24, 1993).
Thus, respondent has established the existence of a liability owing
by Jaussaud Enterprises for which petitioner may be held liable as
a transferee. See sec. 6901(b) (providing that transferee
liability may relate either to the amount shown on a tax return or
to any deficiency).
Finally, petitioner objected to the admission of Exhibit HH,
a letter from Willard D. Horwich, petitioner's counsel, to James
Canny, petitioner's accountant. Petitioner claims that the letter
is inadmissible because it falls within the attorney-client
privilege. We need not decide whether the attorney-client
privilege is applicable (and we did not consider Exhibit HH)
because the admission, or exclusion, of Exhibit HH is moot inasmuch
as we hold petitioner is liable as a transferee under section 6901
for the reasons set forth infra.
Transferee Liability
The issue for decision is whether petitioner is liable for
taxes owed by Jaussaud Enterprises as a result of the corporation's
transfer to petitioner of the Alhambra property.
Respondent suggests two bases for claiming that Jaussaud
Enterprises owes taxes as the result of the transfer of the
Alhambra property to petitioner. One is that Jaussaud Enterprises
was the seller of the Alhambra property to the unrelated third
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