Peter J. Bresson - Page 31

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               HALPERN, J., dissenting:                                               
          I.  Introduction                                                            
               The majority’s conclusion that respondent has a right under            
          the California Uniform Fraudulent Transfer Act to enforce a                 
          liability against petitioner fails to recognize and apply the               
          distinction between statutes of limitations, which set maximum time         
          periods during which certain actions can be brought or rights               
          enforced, and temporal rights  created  by  State  statutes.                
          Therefore, I dissent.                                                       
          II.  Section 6901                                                           
               To use the courts to enforce a liability, the Government, like         
          any other creditor, must establish a basis in law for that                  
          liability.  Section 6901 does not provide any such basis.1  See             
          Commissioner v. Stern, 357 U.S. 39, 42 (1958) (interpreting section         
          311, I.R.C. 1939, the predecessor of section 6901).  Section                
          6901(a) merely establishes the deficiency procedure as a mechanism          
          for collecting certain existing, enumerated liabilities.  One of            
          the enumerated liabilities is the liability of a transferee of              
          property of a taxpayer in the case of the income tax.  Sec.                 
          6901(a)(1)(A)(i).  Section 6901(c) imposes a period of limitations          
          for the assessment of the enumerated liabilities.  Granting that            


               1    Unless otherwise indicated, all section references are            
          to the Internal Revenue Code in effect for the year in issue, and           
          all Rule references are to the Tax Court Rules of Practice and              
          Procedure.                                                                  




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