United States v. Henco Holding Corp., No. 19-12758 (11th Cir. 2021)Annotate this Case
The government was not required to separately assess a transferor's tax liabilities against a transferee under I.R.C. 6901 in order to collect those tax liabilities from the transferee. The government appeals the district court's order dismissing its complaint against the Caceres Defendants, contending that the government had not timely assessed tax liabilities against them as transferees of Henco under section 6901.
As a preliminary matter, the Eleventh Circuit concluded that the government is not bound by Georgia's statute of limitations where it is well settled that the United States is not bound by state statutes of limitation in enforcing its rights. The court reversed the district court's dismissal of the complaint as to the Caceres Defendants, holding that it was bound by the United States Supreme Court's decision in Leighton v. United States, 289 U.S. 506 (1933), which held that a suit was properly brought against the shareholders without a separate assessment against them as transferees. In this case, the government was not required to separately assess the Caceres Defendants for Henco's assessed tax liabilities under section 6901.