United States Ninth Circuit

Decision of the United States Tax Court finding that petitioner-transferee Salus Mundi Foundation (Salus Mundi) was not liable under 26 U.S.C. section 6901 for unpaid tax liability arising from the sale of appreciated assets held by Double-D Ranch, Inc. is reversed and remanded, where: 1) the two requirements of section 6901, transferee status under federal law and substantive liability under state law, are separate inquiries; 2) the state law substantive liability requirement was satisfied because the Double-D shareholders made a fraudulent conveyance under the New York Uniform Fraudulent Conveyance Act; and 3) the case must be remanded to determine Salus Mundi's status as a transferee of a transferee under the federal law inquiry of section 6901, and whether the IRS assessed liability within the applicable limitations period.

Appellate Information

• Decided 12/22/2014
• Published 12/22/2014

Judges

• Noonan

Court

• United States Ninth Circuit

Counsel