Frank Armstrong, III, Transferee, et al. - Page 8




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          lien on the transferee's separate property in the event the                 
          transferee should transfer any part of such property received               
          from the decedent.                                                          
               Section 6324(a)(2) provides that a transferee's liability              
          for unpaid estate taxes is limited to the value of the property             
          that is included in the decedent's gross estate under sections              
          2034 to 2042 and transferred to the transferee as measured at the           
          time of the decedent's death.  However, a transferee's liability            
          is not conditioned on either the exhaustion of remedies for                 
          collection against the estate or the estate's insolvency.  See              
          Schuster v. Commissioner, 312 F.2d at 315; Equitable Life                   
          Assurance Society v. Commissioner, 19 T.C. 264, 269 (1952);                 
          Estate of Callahan v. Commissioner, T.C. Memo. 1981-357.                    
               Relying on the portion of section 6901(a) which states that            
          the Commissioner may only assess and collect an estate tax                  
          deficiency from a transferee "in the same manner and subject to             
          the same provisions and limitations as in the case of the taxes             
          with respect to which the liabilities were incurred", petitioners           
          first contend that they are not liable for the Armstrong estate             
          tax deficiency inasmuch as the stock that decedent transferred to           
          them was not the source of the deficiency.  Petitioners reason              
          that if there is no estate tax directly related to decedent's               









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