- 6 - OPINION Section 6901(a)(1)(A) authorizes the assessment of transferee liability in the same manner as the taxes in respect of which the liability was incurred. This provision does not create a new liability; it merely provides a remedy for enforcing the existing liability of the transferor. Coca-Cola Bottling Co. v. Commissioner, 334 F.2d 875, 877 (9th Cir. 1964), affg. 37 T.C. 1006 (1962); Mysse v. Commissioner, 57 T.C. 680, 700-701 (1972). The Commissioner has the burden of proving all the elements necessary to establish the taxpayer's liability as a transferee except for proving that the transferor was liable for the tax. Sec. 6902(a); Rule 142(d). The substantive question of whether a transferee is liable for the transferor's obligation and the extent of his liability depends on State law. See Commissioner v. Stern, 357 U.S. 39, 45 (1958); Adams v. Commissioner, 70 T.C. 373, 389 (1978), affd. without published opinion 688 F.2d 815 (2d Cir. 1982). All the transfers in the instant case occurred in California; hence, California law governs. Adams v. Commissioner, supra at 390. Under California law, a person is liable as a transferee to the extent of the value of transferred assets when such assets are fraudulently conveyed to him. Pierce v. Commissioner, 61 T.C. 424, 432 (1974); cf. Kuzmicki v. Nelson, 225 P.2d 233 (Cal. Dist. Ct. App. 1950).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011