Larry D. Johnson - Page 2




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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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