- 19 - A deficiency is not created by any act of the respondent, but by the facts and the legal significance thereof as set out in the taxpayer’s income tax return. The so-called “60-day [now 90-day] letter” is no more than notice to the taxpayer that the amount of a deficiency disclosed by its return has been determined under the applicable statute. In our opinion no assessment, notice, or other act of the respondent is necessary to establish liability for income taxes. We think that any deficiency existing at the date of a transfer of assets is a liability against such assets under the trust fund theory. * * * [Cleveland v. Commissioner, supra at 580-581 (fn. ref. omitted); see also Maher v. Commissioner, supra at 457; Kuckenberg v. Commissioner, 35 T.C. at 483.] Hence, the relevant procedural requirement for a proper assertion of transferee liability is that respondent send to the transferee a notice under section 6901 which serves to “inform the transferee of the extent and nature of the tax deficiency which he is claiming against the transferor.” Kuckenberg v. Commissioner, supra at 483-484. Moreover, this rule is equally applicable regardless of whether respondent is asserting that the transferor is liable only for unpaid taxes and deficiencies or whether respondent is claiming that the transferor is liable for additions to tax as well. See Bresson v. Commissioner, supra at 173; Gumm v. Commissioner, supra at 475; Kuckenberg v. Commissioner, supra at 474. We further note that the Court of Appeals for the Ninth Circuit, to which appeal in the instant case would normally lie, has adopted the foregoing principle. See Kuckenberg v. Commissioner, 309 F.2d at 202. In affirming the Tax Court on thePage: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011