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petitioner as a defendant as the recipient of $285,000 of alleged
improper payments from the estate from January 1989 to September
1992. Judgments were entered against William Kabbash and Samuel
Kabbash, but Mary Tom recovered only $866 on behalf of the
estate.
On March 20, 2002, pursuant to an agreement of the parties,
we entered a decision that the estate owed a deficiency of
$1,987,249. The deficiency was assessed on May 20, 2002. The
period of limitation for assessment of the estate tax liability
was set to expire on November 15, 2002.
There are no assets remaining in the estate from which the
estate tax liability may be satisfied. As of June 2004, an
estate tax liability in excess of $8,219,795 remains unpaid.
On April 29, 2003, respondent sent petitioner a notice of
transferee liability, in which respondent determined that
petitioner owed $170,000, plus interest as transferee, trustee,
and beneficiary of the property of the estate. On July 18, 2003,
petitioner filed a timely petition with the Court disputing this
notice of transferee liability.
Discussion
In a transferee liability case, the burden of proof is on
respondent to show that petitioner is liable as a transferee of
property of a taxpayer, but not to show that the taxpayer was
liable for the tax. Sec. 6902(a); Rule 142(d).
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