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B. Period of Limitations
Section 6901(c) provides that the period of limitations for
assessment of liability against a transferee extends “1 year
after the expiration of the period of limitation for assessment
against the transferor”. The period for assessment against the
transferor, in turn, is set forth in section 6501 and generally
runs for 3 years from the filing of the tax return. See sec.
6501(a). The period is of unlimited duration if no return is
filed. See sec. 6501(c)(3). Federal law thus allows at least 4
years, measured from the date a return is filed, in which a
notice of transferee liability may be issued.
In contrast, section 3439.09 of the California Civil Code
(West 1997) states as follows:
A cause of action with respect to a fraudulent
transfer or obligation under this chapter is
extinguished unless action is brought * * *
(a) Under subdivision (a) of Section 3439.04,
within four years after the transfer was made or
the obligation was incurred or, if later, within
one year after the transfer or obligation was or
could reasonably have been discovered by the
claimant.
(b) Under subdivision (b) of Section 3439.04
or Section 3439.05, within four years after the
transfer was made or the obligation was incurred.
* * * * * * *
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