- 5 -
Petitioner concedes that she is liable for the $170,000
determined in the notice of transferee liability, as transferee,
trustee, and beneficiary of property of the estate. The only
issue remaining is whether petitioner is liable, as transferee of
property of the estate, for interest on the $170,000 liability
from the due date of the estate tax return.
Petitioner argues that she is liable for no interest, or,
alternatively, that interest should begin to run when petitioner
was notified of the liability by the notice of transferee
liability in 2003. Petitioner further argues that we should
follow precedent in the U.S. Court of Appeals for the Third
Circuit because all events, pertinent to her case, occurred in
New Jersey.
Respondent argues that petitioner, similar to the transferee
in the case of Baptiste v. Commissioner, 29 F.3d 1533 (11th Cir.
1994), affg. 100 T.C. 252 (1993), is liable for interest on the
amount of the transfer from the date the estate tax return was
due. We disagree with petitioner and hold for respondent on the
basis of controlling precedent.
Section 6601(a) provides that interest on unpaid tax shall
be paid for the period from the last date prescribed for payment
of the tax to the date paid. Section 6601(b)(5) defines the last
date for payment when the date is not otherwise prescribed as
“the date the liability for tax arises (and in no event shall be
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011