United States First Circuit
Frank Sawyer Trust of May 1992 v. Commissioner of Internal Revenue, 12-1586
The Tax Court's decision that petitioner-Trust, who sold corporations that had substantial tax liabilities before they came due, could not be held liable for the corporations' taxes and penalties, is reversed and remanded, where the Tax Court: 1) correctly looked to Massachusetts law to determine whether the Trust could be held liable for the corporations' taxes and penalties; but 2) erred in construing Massachusetts fraudulent transfer law to require, as a prerequisite for the petitioner-Trust's liability, either: a) that the Trust knew of the new shareholders' scheme or b) that the corporations transferred assets directly to the Trust.
Appellate Information
- Decided 03/29/2013
- Published 03/29/2013
Judges
- LYNCH
Court
- United States First Circuit