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taxpayer is liable as a transferee. See sec. 6902(a); Rule 142(d).
Although section 6901 provides a method by which to collect the
tax, liability of a transferee is a question of State rather than
Federal law, and the law of the State where the transfer took place
normally applies. See Commissioner v. Stern, supra; Fibel v.
Commissioner, 44 T.C. 647, 657 (1965).
Here, the transfers took place in Nebraska; consequently, we
apply Nebraska law. Nebraska's Uniform Fraudulent Conveyance Act,
Neb. Rev. Stat. secs. 36-601 to 36-613 (reissue 1988), as in effect
at the time of the transfers, see Schall v. Anderson's Implement,
Inc., 484 N.W.2d 86, 89-90 (Neb. 1992),7 permits a court to void a
debtor's transfer of property if the transfer was made absent fair
consideration and left the debtor insolvent (i.e., without enough
property to pay his debts), or if the transfer was made with an
actual intent to hinder, delay, or defraud a creditor.
Nebraska Rev. Stat. sec . 36-604 (reissue 1988) provides:
36-604. Conveyance by insolvent;
fraudulent. Every conveyance made and every
obligation incurred by a person who is or will
be thereby rendered insolvent is fraudulent as
to creditors without regard to his or her
actual intent if the conveyance is made or the
obligation is incurred without a fair
consideration.
7 In 1989, the Nebraska legislature enacted the Uniform
Fraudulent Transfer Act (UFTA), Neb. Rev. Stat. secs. 36-701 to
36-712 (Cum. Supp. 1990). The UFTA replaced the 1980 Uniform
Fraudulent Conveyance Act (UFCA), Neb. Rev. Stat. secs. 36-601 to
36-613, which is involved herein.
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