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transfer to petitioner was in constructive fraud of creditors under
section 3439.04(b)(1) and/or (2) of the California Civil Code.
Although this holding would appear to resolve this case,
petitioner raises an issue that at first glance "seems overly
ambitious". See Bankers Life & Cas. Co. v. United States, 142 F.3d
973, 974 (7th Cir. 1998). We shall now address this issue.
Period of Limitations
Petitioner argues that even if a fraudulent conveyance is
deemed to have occurred under the UFTA, the period of limitations
for filing actions under the UFTA expired before respondent's
issuance of a notice of transferee liability. This, according to
petitioner, would preclude respondent from using section 6901 as a
remedy to collect the delinquent taxes of Jaussaud Enterprises. On
the other hand, respondent maintains that State limitations periods
may not cut short the time the Federal Government has to assess and
collect the tax liability of petitioner as a transferee under
section 6901. For the reasons set forth below, we agree with
respondent.
Section 6901(c) provides that the Commissioner may assess a
transferee for taxes owed by a transferor within 1 year after the
expiration of the period of limitations for assessment against the
transferor. In the case at bar, Jaussaud Enterprises filed its
Federal corporation income tax return for the tax year ended
February 28, 1991, on March 5, 1993. (Generally, under section
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