Robert John Kayian, Transferee - Page 29

                                       - 29 -                                         

                         (A) Transferees.--The liability, at law or                   
                         in equity, of a transferee of property--                     
                              (i) of a taxpayer in the case of                        
                              a tax imposed by subtitle A (re-                        
                              lating to income taxes),                                
                     *     *     *     *     *     *     *                            
                    (h) Definition of Transferee.--As used in this                    
               section, the term "transferee" includes donee, heir,                   
               legatee, devisee, and distributee * * *.                               
               The courts have recognized that section 6901 does not create           
          or define a substantive liability, but merely provides a pro-               
          cedure by which the Government may collect from a transferee of             
          property unpaid taxes owed by the transferor of the property.               
          Commissioner v. Stern, 357 U.S. 39, 42 (1958); Hagaman v. Com-              
          missioner, 100 T.C. 180, 183 (1993).  The existence and extent of           
          a transferee's liability is determined under applicable State               
          law.  See Commissioner v. Stern, supra at 42-45; Hagaman v.                 
          Commissioner, supra at 183-185.  The parties agree that the                 
          applicable State law in these cases is the law of the State of              
          Florida.  Petitioners argue, however, that under applicable                 
          Florida law respondent must establish by clear and convincing               
          evidence, and not merely by a preponderance of the evidence, that           
          petitioners are liable as transferees.  Respondent counters that            
          under applicable Florida law the standard of proof is a pre-                
          ponderance of the evidence.  We agree with respondent.  See                 

Page:  Previous  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  Next

Last modified: May 25, 2011