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remanded 958 F.2d 684 (6th Cir. 1992). Respondent bears the
burden of proving that petitioner is liable as a transferee of
the taxpayer. Sec. 6902(a); Gumm v. Commissioner, 93 T.C. 475,
479 (1989), affd. without published opinion 933 F.2d 1014 (9th
Cir. 1991).
Respondent determined that petitioner is a transferee at law
and in equity. Petitioner asserts two different defenses in this
case in an attempt to avoid transferee liability. First,
petitioner contends that the portion of the settlement proceeds
transferred to him was his asset and that JCC was merely a
conduit or recipient of the settlement proceeds for purposes of
convenience. In other words, petitioner contends that the
portion of the settlement proceeds received by him was not an
asset of JCC or its subsidiaries and, accordingly, could not be
“transferred” to him. Second, if we find that the proceeds
belonged to the JCC conglomerate and that they were then
transferred to petitioner, petitioner, in the alternative,
contends that the transfer was for adequate consideration.
Petitioner further contends that one of the JCC entities had an
antecedent obligation to petitioner and that the transfer
satisfied that obligation. We note that the question of
transferee liability in this case is to be decided under the law
of the State of Texas.
The first element about which the parties disagree concerns
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