Frank Armstrong, III, Transferee, et al. - Page 9




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          stock transfers, respondent is barred from attempting to collect            
          such taxes from them.                                                       
               Petitioners' reliance on section 6901(a) as the basis for              
          defining the scope of their liability as transferees is                     
          misplaced.  As previously discussed, section 6901(h) defines a              
          transferee in pertinent part as "any person who, under section              
          6324(a)(2), is personally liable for any part of such tax."                 
          Section 6324(a) in turn establishes the existence and extent of a           
          transferee's substantive liability.  See Schuster v.                        
          Commissioner, supra.  In contrast, section 6901(a) merely                   
          prescribes the procedures that respondent must follow in                    
          assessing and collecting taxes from transferees under that                  
          section.  See id.   Thus, although section 6901(a) provides that            
          respondent must follow the normal deficiency procedures before              
          assessing and collecting estate taxes from a transferee, the                
          provision does not define or otherwise restrict a transferee's              
          substantive liability as petitioners contend.                               
               Petitioners argue in the alternative that they are not                 
          liable as transferees under section 6324(a)(2) on the ground that           
          they did not receive property that is includable in the gross               
          estate pursuant to sections 2034 through 2042.  Petitioners                 
          emphasize that the estate tax deficiency is attributable solely             









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