- 8 - from New EOCC to the foundation constituted a fraudulent convey- ance under applicable Oregon law and that therefore the United States had demonstrated a sufficient nexus between EOCC and that property to make the levy on that property valid for the purpose of collecting EOCC's tax liability. With respect to the United States' contention that the Modoc levy for petitioners' tax liability was proper, the District Court explained that if it were to find that the foundation was either a nominee of petitioners or a sham entity, there would be a sufficient nexus between petitioners and the Modoc property to make the Modoc levy valid for the purpose of collecting petition- ers' tax liability. The District Court found on the record before it that the foundation was both a nominee of petitioners and a sham entity and that there was a sufficient nexus between petitioners and the Modoc property to make the levy on that property valid for the purpose of collecting petitioners' tax liability. The District Court stated in pertinent part: It is clear from the facts, cited in defendant's memorandum and reply memorandum and contained in the statement of facts, that * * * [petitioners], espe- cially [petitioner] Bruce Carpenter, maintained total control over the * * * [foundation]. It is also clear from the facts that * * * [petitioners] transferred the Modoc property from * * * EOCC to New EOCC and from New EOCC to * * * [the foundation] in anticipation of the income tax deficiencies. * * * It is also clear from the facts that the funds used to purchase the Modoc property are properly attributed to * * * [petitioners] as set forth in defendant's reply memorandum. * * * [Petitioners] continue to enjoy possession, control, and the benefits of * * * [the foundation's] assets,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011