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Transferee Liability

Tax Court – Flaw in IRS notice to transferees didn’t affect liability for interest on underpayment

Tax Court – Flaw in IRS notice to transferees didn’t affect liability for interest on underpayment

Shockley, TC Memo 2016-8 The Tax Court has held that a notice to a husband and wife, that provided that they were liable as transferees for their corporation’s tax liability, while not perfect in its contents, nonetheless was not so flawed as to prevent the couple from being liable for interest on the transferee liability. […]

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Tax Court refuses to impose transferee liability on company shareholders

Tax Court refuses to impose transferee liability on company shareholders

John M. Alterman trust U/A/D May 9, 2000, et al, TC Memo 2015-231 In consolidated cases, the Tax Court has rejected IRS’s attempt to impute transferee liability on taxpayers under Code Sec. 6901 for taxes that went unpaid by a corporation in which they previously owned an interest.  Click here for the Opinion of the […]

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Court rules that state law governed transferee underpayment interest calculation

Court rules that state law governed transferee underpayment interest calculation

Schussel, (CA 5 7/8/2014) 114 AFTR 2d ¶ 2014-5038 The Court of Appeals for the Fifth Circuit has concluded that where a corporation’s controlling shareholder was liable for the corporation’s taxes as a transferee, state law, not federal tax law, determined certain aspects of the accrual of interest on the transferee tax liability. Background. Code […]

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Tax Court rejects IRS’s application of transferee liability Code section

Tax Court rejects IRS’s application of transferee liability Code section

Julia R. Swords Trust, (2014) 142 TC No. 19.  The Tax Court has rejected IRS’s use of federal law, i.e., the federal substance over form doctrine, to recast a transaction for purposes of applying a provision of Code Sec. 6901’s transferee liability rule. That provision requires that transferee liability only applies if there is an […]

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Court finds trust liable as transferee of a transferee but only to a limited extent

Court finds trust liable as transferee of a transferee but only to a limited extent

In Frank Sawyer Trust of May 1992, Transferee, Carol S. Parks, Trustee, v. Commissioner, T.C. Memo. 2014-59, a remand decision, the Tax Court has held that a trust was liable as a transferee of a transferee under Code Sec. 6901. However, the Court found that the trust was a good-faith transferee and, therefore, was not […]

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Court won’t dismiss action against transferee for her father’s unpaid estate tax

Court won’t dismiss action against transferee for her father’s unpaid estate tax

A district court, in U.S. v. Mangiardi (DC Fl, July 19, 2013), 112 AFTR 2d ¶ 2013-5108, has refused to dismiss a transferee liability action brought by IRS against a decedent’s daughter, who had received funds from his IRA after his death. Facts. Joseph L. Mangiardi (Decedent) died on April 5, 2000. Maureen G. Mangiardi, […]

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Is my inheritance safe? Can the IRS seize it? Recent Case says maybe, . . .

Is my inheritance safe?  Can the IRS seize it?  Recent Case says maybe, . . .

Editor’s Note: one question that comes up from time to time is the client who states they have been contacted by the IRS and the IRS wants the “inheritance” they received to be returned to the IRS. In some cases, the IRS has seized the asset in question.  In others, we fight the battle in […]

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Case of Interest: Tax Court Holds IRS Cannot Establish Transferee Liability in Sale of All Company’s Assets Followed by Sale of all its Stock

Case of Interest: Tax Court Holds IRS Cannot Establish Transferee Liability in Sale of All Company’s Assets Followed by Sale of all its Stock

In a case in favor of the taxpayers, the Tax Court in Slone, TC Memo 2012-57, refused to apply the “substance over form” doctrine to recast the sale of a company’s stock, following a sale of all its assets, as a liquidating distribution.  The Court further found that the taxpayers weren’t liable as transferees under […]

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Meet Paul Raymond

Meet Paul Raymond

Mr. Raymond is a sought after speaker in tax controversy law by many attorney, accountant, and business groups and at the request of the Internal Revenue Service, has presented programs at the IRS Nationwide Tax Forum, attended by tax professionals throughout the United States.

Additionally, he continues to be an active member in the Section of Taxation, American Bar Association, where he was the Past Chair of the Employment Taxes Committee.

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Member CA Bar Member Orange County Bar US Tax Court Attorney