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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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