Larry D. Johnson - Page 7




                                        - 7 -                                         
          ended June 30, 1989, was filed on October 3, 1994.  JCC reported            
          taxable income, before net operating losses (NOLs), in the amount           
          of $2,858,914.  After applying carryover NOLs from prior tax                
          years, JCC had no regular corporate income tax liability.  JCC,             
          however, remained liable for the alternative minimum tax of                 
          $57,004, which is in controversy in this case.  The unpaid tax              
          liability reported on JCC’s return was assessed by the                      
          Commissioner on November 14, 1994.  In addition, the Commissioner           
          assessed a $12,825 late filing penalty and a $14,251 penalty for            
          late payment of tax, plus interest as provided by law.  During              
          February 1995, the Commissioner filed a notice of Federal tax               
          lien against JCC for its 1986 tax liabilities.                              
                                       OPINION                                        
               We consider, under section 6901, whether respondent has                
          shown that petitioner is a transferee of JCC’s assets and, hence,           
          liable for JCC’s unpaid Federal tax liability.  Section 6901(a)             
          is a procedural statute enabling respondent to collect a                    
          transferor’s unpaid tax liability from a transferee of the                  
          transferor’s assets.  Under section 6901(a), respondent may                 
          establish transferee liability if a basis exists under applicable           
          State law for holding the transferee liable.  Commissioner v.               
          Stern, 357 U.S. 39, 42-47 (1958); Bresson v. Commissioner, 111              
          T.C. 172, 179 (1998), affd. 213 F.3d 1173 (9th Cir. 2000);                  
          Hagaman v. Commissioner, 100 T.C. 180, 183 (1993), affd. and                






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011