Mark J. Hanna, P.C., Transferee - Page 6




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               On March 15, 1994, Associates PC filed its Federal income               
          tax return for 1993.                                                         
               In 1996, Hanna filed a bankruptcy petition on behalf of                 
          Associates PC and a second personal bankruptcy petition on his               
          own behalf.                                                                  
               On February 26, 1997, after an audit, respondent mailed                 
          Associates PC a notice of deficiency determining, among other                
          things, an income tax deficiency of $31,450 in Associates PC's               
          1993 Federal income tax liability.                                           
               Also on February 26, 1997, respondent mailed to Hanna PC a              
          notice of transferee liability in the amount of $25,297 relating             
          to the $31,450 income tax deficiency for 1993 that respondent had            
          determined against Associates PC.3                                           

                                       OPINION                                         
               Under section 6901(a), a procedure is provided to collect               
          from a transferee of assets a transferor's tax liability if the              
          transferee is liable at law or in equity for the transferor's tax            
          liability.  See Commissioner v. Stern, 357 U.S. 39, 42 (1958)                
          (interpreting then sec. 311, a predecessor to sec. 6901);                    
          Stansbury v. Commissioner, 104 T.C. 486, 489-490 (1995), affd.               


          3    At trial, respondent's agent testified that Hanna PC's                  
          transferee liability under sec. 6901 should be increased to                  
          $28,648.  Respondent, however, has not moved to amend his                    
          pleading or asked the Court to increase the deficiency to conform            
          to the evidence.  We decline to consider an increase in Hanna                
          PC's alleged transferee liability.                                           




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