- 12 - transferee liability does not depend upon the issuance to the transferor of a valid notice of deficiency. See Kuckenberg v. Commissioner, 35 T.C. 473, 483 (1960), affd. on this issue 309 F.2d 202 (9th Cir. 1962); Cleveland v. Commissioner, 28 B.T.A. 578 (1933), affd. sub nom. Flynn v. Commissioner, 77 F.2d 180 (5th Cir. 1935); Espinosa v. Commissioner, T.C. Memo. 2000-66, affd. 24 Fed. Appx. 825 (9th Cir. 2001). Consequently, the alleged defect in the corporation’s notice of deficiency would not, in and of itself, impair this Court’s jurisdiction in the transferee liability cases.6 In any event, the notice of deficiency to the corporation would not be invalid merely because it covered the entire 1995 year. See Burford v. Commissioner, 76 T.C. 96, 100 (1981), affd. without published opinion 786 F.2d 1151 (4th Cir. 1986); Sanderling, Inc. v. Commissioner, 66 T.C. 743, 749 (1976) (“where the notice [of deficiency] is based on the taxpayer’s final tax period and covers the entire period of the taxpayer’s operations, it is a valid determination for that period”), supplemented by 67 T.C. 176 (1976), affd. 571 F.2d 174 (3d Cir. 1978). 6 Moreover, we note that petitioners’ transferee liabilities are not predicated entirely on the corporation’s deficiency as determined in the notice of deficiency. Rather, as previously noted, petitioners’ transferee liabilities, as determined in the notices of transferee liability, also include $16,135 attributable to the corporation’s reported but unpaid 1995 tax liability. This $16,135 amount was not subject to deficiency procedures.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011