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1The record does not disclose on what date
this payment was made.
On or about April 15, 1997, Self Oil filed Form 1120-S, U.S.
Income Tax Return for an S Corporation, for the period January 1
through April 12, 1996, reporting ordinary income of $26,634.
On or about August 18, 1997, Self Oil filed Form 1120, U.S.
Corporation Income Tax Return, for the period April 13 through
December 31, 1996, reporting a tax liability of $123,060. On
September 28, 2001, respondent issued a notice of liability to
petitioner asserting that it was liable as a transferee of Self
Oil’s assets for Self Oil’s unpaid income tax liability for the
taxable year ended December 31, 1996, for $119,689.71.
OPINION
Section 6901 provides a procedural mechanism for collecting
unpaid tax from transferees of property in certain circumstances.
Hagaman v. Commissioner, 100 T.C. 180 (1993); see Phillips v.
Commissioner, 283 U.S. 589 (1931) (relating to the predecessor of
section 6901). Section 6901 provides in pertinent part:
SEC. 6901. TRANSFERRED ASSETS.
(a) Method of Collection.–-The amounts of the following
liabilities shall, except as hereinafter in this section
provided, be assessed, paid, and collected in the same
manner and subject to the same provisions and limitations as
in the case of the taxes with respect to which the
liabilities were incurred:
(1) Income, estate, and gift taxes.--
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