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Petitioners, however, failed to meet their burden of rebutting
that presumption of fraudulent intent.
Additionally, petitioners contend that transferee liability
should not be assessed against Larry, Ronnie, or Sylvia because
respondent made no attempt to assess or collect taxes from Frank
or Katherine until 10 months after Katherine’s death. Thus,
petitioners assert, respondent failed to make reasonable efforts
to assess and collect tax liabilities against Frank and Katherine
before their deaths.
It is apparent from the record that attempts to collect
Frank and Katherine’s tax liabilities from their estates would be
futile. By 1995, Katherine and Frank already had given away all
of their assets except for a life estate in the Longwood property
and $300 to $500 in a bank account. Thus, it is apparent that
Frank and Katherine’s estates were insolvent by the time
respondent mailed the notices of transferee liability to Larry,
Ronnie, and Sylvia. See Gumm v. Commissioner, supra at 485. We
do not agree with petitioners that respondent unduly delayed
assessment of the deficiencies. Katherine did not reveal the
transfers to Larry, Ronnie, and Sylvia until June 14, 1995, when
she gave her deposition.
Respondent has shown under applicable State law that Larry,
Ronnie, and Sylvia are liable as transferees of Frank and
Katherine’s tax liabilities for the years in issue. Accordingly,
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