Mark J. Hanna, P.C., Transferee - Page 7




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          102 F.3d 1088 (10th Cir. 1996).  In this case, Texas law controls            
          whether Hanna PC is to be liable for the transferor's tax                    
          liability (namely, whether the transfer from Associates PC to                
          Hanna PC is to be regarded as a fraudulent transfer under the                
          Texas Uniform Fraudulent Transfer Act (UFTA)).  UFTA Tex. Bus. &             
          Com. Code Ann. secs. 24.001 to 24.012 (West 1987 & Supp. 1999);              
          see Commissioner v. Stern, supra at 45; Hagaman v. Commissioner,             
          100 T.C. 180, 183 (1993).  Respondent bears the burden of proof              
          to show that Hanna PC is liable as a transferee, but not to show             
          that Associates PC was liable for the tax.  See sec. 6902(a);                
          Rule 142(d).                                                                 
               Under UFTA section 24.006(a), it is provided that a                     
          transferor engages in a transfer that is fraudulent as to a                  
          creditor if:  (1) The transferor makes a transfer to a                       
          transferee, (2) the creditor has a claim against the transferor              
          before the transfer is made, (3) the transferor makes the                    
          transfer without receiving reasonably equivalent value, and (4)              
          the transferor is insolvent at the time of the transfer or is                
          rendered insolvent as a result of the transfer.4                             


          4    The language of sec. 24.006(a) of the Texas Uniform                     
          Fraudulent Transfer Act (UFTA), Tex. Bus. & Com. Code Ann.                   
          (West 1987), is provided below:                                              
                    A transfer made or obligation incurred by a debtor is              
                    fraudulent as to a creditor whose claim arose before               
                    the transfer was made or the obligation was incurred if            
                    the debtor made the transfer or incurred the obligation            
                                                              (continued...)           




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