Starnes v. Commissioner, IRS; Stroupe v. Commissioner, IRS; Naples v. Commissioner, IRS; Morelli, Sr. v. Commissioner, IRS

Former Shareholders of Tarcon filed petitions in the Tax Court contesting the Commissioner's notices of transferee liability. The Tax Court ruled in favor of the Former Shareholders, applying Commissioner v. Stern, holding that the Commissioner could only collect from the Former Shareholders if, under North Carolina law, a Tarcon creditor could recover payments of Tarcon's debts from the Former Shareholders. The court concluded that the Tax Court properly identified and applied the controlling legal framework as set forth in Stern and it did not commit clear error in its factual findings. Accordingly, the court affirmed the judgment in favor of the Former Shareholders. View "Starnes v. Commissioner, IRS; Stroupe v. Commissioner, IRS; Naples v. Commissioner, IRS; Morelli, Sr. v. Commissioner, IRS" on Justia Law