Kinnett-Odom Co. v. Commissioner
United States Board of Tax Appeals
TRANSFEREE - LIABILITY. - Where the petitioner purchased from the taxpayer its tangible assets only, and taxpayer retained its cash, bills and accounts receivable, and stock on hand, and respondent did not prove that the value of these retained assets was less than the amount of the tax, and there is no evidence of bad faith, there is no liability of petitioner under section 280.
1Opinion of the Court
*1125OPINION.
Black:
In cases arising under section 280 the burden of proof to establish the liability of the transferee (petitioner) is on the respondent. In the recent case of Metropolitan Securities Corporation, 19 B. T. A. 299, we had this question before us, and it was there held that, where the transferee corporation purchased all the assets of the taxpayer and paid the taxpayer therefor in shares of its capital stock and no fraud was shown, there was no liability on the transferee, because the taxpayer had assests out of which the taxes could have been collected. In the instant case there is…
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