The Second Circuit, in Diebold v. Commissioner, describes the requirements for finding transferee liability under Section 69012, here specifically under New York law, as state law predominates the determination of whether a person will be liable for federal taxes as a transferee. This case involved a so-called “Midco” transaction, whereby the goal was to avoid the corporate level taxes on the disposition of the assets of a C corporation.4
View PDF Here: DIEBOLD and the Not so Beautiful – Transferee Liability Trumps Tax Shelter