- 28 -
(CCH), sec. 5.12.1.18.1(3), at 16,836. The request for approval
must show that, while a third party may have legal title to the
property, the taxpayer owns an interest in the property and
enjoys its full use and benefit. See 2 Administration, Internal
Revenue Manual (CCH), sec. 5.17.2.4.8.2, at 17,865. Factors
which the IRM lists as support for the filing of a nominee NFTL
include the following: (1) The taxpayer previously owned the
property,11 (2) the nominee paid little or no consideration for
the property, (3) the taxpayer retains possession or control of
the property, (4) the taxpayer continues to use and enjoy the
property conveyed just as the taxpayer had before such
conveyance, (5) the taxpayer pays all or most of the expenses of
the property, and (6) the conveyance was for tax avoidance
purposes. Id.
In accordance with the procedures outlined in the IRM,
Revenue Officer Baustert submitted a memorandum, dated December
11, 2001, to Counsel, requesting that a nominee NFTL be
authorized with respect to the Claremore property. The
memorandum listed several factors in support of the request that
are enumerated in the IRM. On January 15, 2002, Counsel approved
Revenue Officer Baustert’s request after reviewing the evidence
11Even if a taxpayer never transferred a particular asset to
the current titleholder, a lien for his taxes may attach to it if
purchased with funds he supplied. E.g., LiButti v. United
States, 107 F.3d 110, 125 (2d Cir. 1997).
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