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the “insider” was made as part of the usual business
practices of the “insider” and the transferor.
Held: The transfer to P was from C. Held,
further, even though P was an “insider” under Texas
law, the transfer was not in avoidance of creditors
because it was made in good faith and as part of the
usual business practices of P and C. Held, further, P
is not liable as a transferee.
Gerald R. Mace and Ben D. Stevens, for petitioner.
Nancy Graml, for respondent.
GERBER, Judge: In a notice of liability, respondent
determined that petitioner is liable as a transferee at law and
in equity for the assessed Federal income tax liability and
additions to tax of Johnson Consolidated Cos., Inc., and
Subsidiaries (JCC), for its taxable year ending June 30, 1989.
Respondent determined that petitioner is liable for JCC’s income
tax liability of $57,004.00 and additions to the tax in the
amounts of $12,825.90 and $14,251.00 under section 6651(a)(1)1
and (2), respectively.
There is no dispute concerning JCC’s liability for the
deficiency. The issue for our consideration is whether
petitioner is liable as a transferee for JCC’s unpaid Federal
income tax, additions to tax, and accrued interest. If
1 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the years in issue, and Rule
references are to the Tax Court Rules of Practice and Procedure.
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