- 9 -
she distributed to herself cash and a note and canceled
promissory notes that she had signed. We held that petitioner
was a transferee of Napa under former Colo. Rev. Stat. sec. 7-5-
114(1)(c) (1986) (Director Dissolution Statute) because she
caused the corporation to liquidate, and she distributed
corporate assets to herself. Merriam v. Commissioner, T.C. Memo.
1995-432.
We entered decision that petitioner was liable as a
transferee for Napa’s 1986 income tax and additions to tax for
1986 in the amount of $1,154,034.56. The case was appealed to
and affirmed without published opinion by the U.S. Court of
Appeals for the Ninth Circuit. Ted Merriam discussed collection
alternatives with James Merriam after the decision became final.
Ted Merriam never spoke to petitioner about the case. He
believed that: (a) Petitioner had signed Napa corporate
documents; (b) petitioner knew that she was a shareholder,
director, and officer of Napa; (c) James Merriam kept petitioner
informed of important business and tax matters; and (d)
petitioner had expressly authorized James Merriam to act on her
behalf in this case.
E. Sale of the Tiburon Residence
On February 22, 1996, IRS agent Michael Buttress (Buttress)
went to the Tiburon residence and gave petitioner some
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011