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We shall now address the transferee liability issues pre-
sented in these cases. Respondent bears the burden of showing
that each petitioner is liable as a transferee of property of Mr.
Kayian, Sr., but not that Mr. Kayian, Sr. was liable for Mr.
Kayian, Sr.'s 1987-1989 unpaid tax liability. See sec. 6902(a);
Rule 142(d).
Section 6901 provides in pertinent part:
(a) Method of Collection.--The amounts of the
following liabilities shall, except as hereinafter in
this section provided, be assessed, paid, and collected
in the same manner and subject to the same provisions
and limitations as in the case of the taxes with re-
spect to which the liabilities were incurred:
(1) Income, estate, and gift taxes.--
3(...continued)
proceeding and who was responsible for preparation of the bank-
ruptcy stipulation. We admitted Mr. Doyle's testimony into
evidence conditionally, subject to our ruling on the admissibil-
ity of stipulation 72 and stipulation 73 and the exhibits refer-
enced therein. On brief, petitioners concede that Mr. Doyle's
testimony is inadmissible. We conclude that Mr. Doyle's testi-
mony, like stipulation 72 and stipulation 73 as well as the
respective exhibits referenced therein, is inadmissible under FRE
408. Accordingly, Mr. Doyle's testimony shall be deemed stricken
from the record in these cases.
Assuming arguendo that stipulation 72 and stipulation 73 and
the exhibits referenced in those stipulations were admissible,
Mr. Doyle's testimony also would be admissible. That testimony,
if admitted into the instant record, would establish that the
United States was willing to enter into the bankruptcy stip-
ulation because it concluded that it had not timely filed in the
bankruptcy proceeding its claim against Mr. Kayian, Jr. that he
is liable as a transferee of Mr. Kayian, Sr.'s outstanding tax
liability. Even if we had ruled differently on the evidentiary
matters addressed herein, such a ruling would not have affected
our conclusions with respect to the transferee liability issues
in these cases.
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