A recent case from the 11th circuit, U.S. v. Henco Holding Corp., is an important case in regard to the tax enforcement of transferee liability. The two biggest takeaways from the case are: one, a reminder that a state statute of limitations is not binding on the IRS, with the Court noting that it has long been held that the federal government does not become subject to a state statute of limitations when it is acting in its governmental capacity and asserting a claim under its rights as the federal government; and two, that a transferee assessment under IRC 6901 is not necessary to proceed against individual shareholder-transferees where the parent company had been properly and timely assessed. “Proving” transferee liability under the applicable state statutes still applies, however.

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Jason Morton is a Partner in a small boutique tax law firm, Webb & Morton PLLC, with offices in both North Carolina and Virginia. He maintains the law firm’s very active

Blog, as well as maintaining a Vlog on YouTube. Jason…

Jason Morton is a Partner in a small boutique tax law firm, Webb & Morton PLLC, with offices in both North Carolina and Virginia. He maintains the law firm’s very active

Blog, as well as maintaining a Vlog on YouTube. Jason has published several featured articles with TaxNotes, the NC Bar Association Tax Section, Autism Parenting Magazine, local newspapers and most recently, working with Cointelegraph and Bloomberg Tax. Jason is also an Officer in the Army National Guard, most recently serving an active duty tour from 2016 to 2018. Most importantly, above all else, Jason is proud Autism Dad.