Edward Fridovich, Transferee - Page 10




                                       - 10 -                                         
          assessment in docket No. 42224-85.  See secs. 6501, 6503.                   
               Pursuant to section 6901(c)(1), the period of limitations for          
          assessment of a liability against an initial transferee is 1 year           
          after the expiration of the period of limitations for assessment            
          against the transferor.  See, e.g., Bresson v. Commissioner, 111            
          T.C. 172 (1998), affd. 213 F.3d 1173 (9th Cir. 2000).  Here, as             
          noted, the period of limitations for assessment of the liability            
          did not expire with respect to the estate until March 2, 1997, and          
          with respect to petitioner before March 2, 1998, which was 70 days          
          after the date (December 22, 1997) the notice of transferee                 
          liability was sent to petitioner.  Consequently, the notice of              
          transferee liability to petitioner was timely, and the statute of           
          limitations did not bar respondent from assessment and collection           
          of the $1,118,621 estate tax liability against petitioner.                  
               We now turn to petitioner’s alternative argument that the              
          doctrine of laches operates to preclude respondent’s assessment and         
          collection of the liability owed by petitioner.  The doctrine of            
          laches bars a claim when the following three elements are present:          
          (1) There was a delay in asserting a right or a claim; (2) the              
          delay was inexcusable; and (3) there is undue prejudice to the              
          party against whom the claim is asserted.  See, e.g., Kason Indus.,         
          Inc. v. Component Hardware Group, Inc., 120 F.3d 1199, 1203 (11th           
          Cir. 1997); Albertson v. T.J. Stevenson & Co., 749 F.2d 223, 233            
          (5th Cir. 1984).  The doctrine of laches can be raised only by one          






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011