![]() ![]() Instead, the IRS applies the ten years of the IRC. So while the Internal Revenue Service should follow the state law, the agency isn’t bound by the Statute of Limitations of the state law. However, it further states that the transferee’s liability will be determined “in equity or at law.” It means that the IRS should make use of the state fraudulent transfer law when it pursues a transferee. So if these transfers were successfully made from a debtor to a third party with the intention of preventing a particular creditor from getting the said transferred assets to satisfy the creditor’s claim, this particular activity is called a fraudulent transfer or a fraudulent conveyance.īesides that, the IRC section 6901(a)(1)(A)(i) allows the Internal Revenue Service to collect the unsettled taxes of the transferee of the property of the debtor. The Federal Bankruptcy Code Section 548 allows the DIP (debtor-in-possession) or the trustee to avoid any transfers that the debtor makes out of the bankruptcy estate that make the creditors unable to reach those assets. The Fraudulent Conveyance Lookback Period However, the limitation period will not be more than 3 years after the assessment period against the transferor ends. But if it is for the assessment against a transferee or a transferee, there will be 1 year limitations period after the assessment period against the preceding transferee ends. The assessment of the transferee or fiduciary’s liability under IRC section 6901(c) is limited to 1 year after the period of assessment against the transferor ends. ![]()
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