-CITE-

26 USC CHAPTER 71 - TRANSFEREES AND FIDUCIARIES 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 71 - TRANSFEREES AND FIDUCIARIES

-HEAD-

CHAPTER 71 - TRANSFEREES AND FIDUCIARIES

-MISC1-

Sec.

6901. Transferred assets.

6902. Provisions of special application to transferees.

6903. Notice of fiduciary relationship.

6904. Prohibition of injunctions.

6905. Discharge of executor from personal liability for

decedent's income and gift taxes.

AMENDMENTS

1970 - Pub. L. 91-614, title I, Sec. 101(e)(2), Dec. 31, 1970, 84

Stat. 1837, added item 6905.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 6216, 6503, 6504, 7421,

7508, 7801 of this title.

-End-

-CITE-

26 USC Sec. 6901 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 71 - TRANSFEREES AND FIDUCIARIES

-HEAD-

Sec. 6901. Transferred assets

-STATUTE-

(a) Method of collection

The amounts of the following liabilities shall, except as

hereinafter in this section provided, be assessed, paid, and

collected in the same manner and subject to the same provisions and

limitations as in the case of the taxes with respect to which the

liabilities were incurred:

(1) Income, estate, and gift taxes

(A) Transferees

The liability, at law or in equity, of a transferee of

property -

(i) of a taxpayer in the case of a tax imposed by subtitle

A (relating to income taxes),

(ii) of a decedent in the case of a tax imposed by chapter

11 (relating to estate taxes). or

(iii) of a donor in the case of a tax imposed by chapter 12

(relating to gift taxes),

in respect of the tax imposed by subtitle A or B.

(B) Fiduciaries

The liability of a fiduciary under section 3713(b) of title

31, United States Code (!1) in respect of the payment of any

tax described in subparagraph (A) from the estate of the

taxpayer, the decedent, or the donor, as the case may be.

(2) Other taxes

The liability, at law or in equity of a transferee of property

of any person liable in respect of any tax imposed by this title

(other than a tax imposed by subtitle A or B), but only if such

liability arises on the liquidation of a partnership or

corporation, or on a reorganization within the meaning of section

368(a).

(b) Liability

Any liability referred to in subsection (a) may be either as to

the amount of tax shown on a return or as to any deficiency or

underpayment of any tax.

(c) Period of limitations

The period of limitations for assessment of any such liability of

a transferee or a fiduciary shall be as follows:

(1) Initial transferee

In the case of the liability of an initial transferee, within 1

year after the expiration of the period of limitation for

assessment against the transferor;

(2) Transferee of transferee

In the case of the liability of a transferee of a transferee,

within 1 year after the expiration of the period of limitation

for assessment against the preceding transferee, but not more

than 3 years after the expiration of the period of limitation for

assessment against the initial transferor;

except that if, before the expiration of the period of limitation

for the assessment of the liability of the transferee, a court

proceeding for the collection of the tax or liability in respect

thereof has been begun against the initial transferor or the last

preceding transferee, respectively, then the period of limitation

for assessment of the liability of the transferee shall expire 1

year after the return of execution in the court proceeding.

(3) Fiduciary

In the case of the liability of a fiduciary, not later than 1

year after the liability arises or not later than the expiration

of the period for collection of the tax in respect of which such

liability arises, whichever is the later.

(d) Extension by agreement

(1) Extension of time for assessment

If before the expiration of the time prescribed in subsection

(c) for the assessment of the liability, the Secretary and the

transferee or fiduciary have both consented in writing to its

assessment after such time, the liability may be assessed at any

time prior to the expiration of the period agreed upon. The

period so agreed upon may be extended by subsequent agreements in

writing made before the expiration of the period previously

agreed upon. For the purpose of determining the period of

limitation on credit or refund to the transferee or fiduciary of

overpayments of tax made by such transferee or fiduciary or

overpayments of tax made by the transferor of which the

transferee or fiduciary is legally entitled to credit or refund,

such agreement and any extension thereof shall be deemed an

agreement and extension thereof referred to in section 6511(c).

(2) Extension of time for credit or refund

If the agreement is executed after the expiration of the period

of limitation for assessment against the taxpayer with reference

to whom the liability of such transferee or fiduciary arises,

then in applying the limitations under section 6511(c) on the

amount of the credit or refund, the periods specified in section

6511(b)(2) shall be increased by the period from the date of such

expiration to the date of the agreement.

(e) Period for assessment against transferor

For purposes of this section, if any person is deceased, or is a

corporation which has terminated its existence, the period of

limitation for assessment against such person shall be the period

that would be in effect had death or termination of existence not

occurred.

(f) Suspension of running of period of limitations

The running of the period of limitations upon the assessment of

the liability of a transferee or fiduciary shall, after the mailing

to the transferee or fiduciary of the notice provided for in

section 6212 (relating to income, estate, and gift taxes), be

suspended for the period during which the Secretary is prohibited

from making the assessment in respect of the liability of the

transferee or fiduciary (and in any event, if a proceeding in

respect of the liability is placed on the docket of the Tax Court,

until the decision of the Tax Court becomes final), and for 60 days

thereafter.

(g) Address for notice of liability

In the absence of notice to the Secretary under section 6903 of

the existence of a fiduciary relationship, any notice of liability

enforceable under this section required to be mailed to such

person, shall, if mailed to the person subject to the liability at

his last known address, be sufficient for purposes of this title,

even if such person is deceased, or is under a legal disability,

or, in the case of a corporation, has terminated its existence.

(h) Definition of transferee

As used in this section, the term "transferee" includes donee,

heir, legatee, devisee, and distributee, and with respect to estate

taxes, also includes any person who, under section 6324(a)(2), is

personally liable for any part of such tax.

(i) Extension of time

For extensions of time by reason of armed service in a combat

zone, see section 7508.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 841; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-258,

Sec. 3(f)(10), Sept. 13, 1982, 96 Stat. 1065.)

-MISC1-

AMENDMENTS

1982 - Subsec. (a)(1)(B). Pub. L. 97-258 substituted "section

3713(b) of title 31, United States Code" for "section 3467 of the

Revised Statutes (31 U.S.C. 192)".

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6040 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be followed by a comma.

-End-

-CITE-

26 USC Sec. 6902 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 71 - TRANSFEREES AND FIDUCIARIES

-HEAD-

Sec. 6902. Provisions of special application to transferees

-STATUTE-

(a) Burden of proof

In proceedings before the Tax Court the burden of proof shall be

upon the Secretary to show that a petitioner is liable as a

transferee of property of a taxpayer, but not to show that the

taxpayer was liable for the tax.

(b) Evidence

Upon application to the Tax Court, a transferee of property of a

taxpayer shall be entitled, under rules prescribed by the Tax

Court, to a preliminary examination of books, papers, documents,

correspondence, and other evidence of the taxpayer or a preceding

transferee of the taxpayer's property, if the transferee making the

application is a petitioner before the Tax Court for the

redetermination of his liability in respect of the tax (including

interest, additional amounts, and additions to the tax provided by

law) imposed upon the taxpayer. Upon such application, the Tax

Court may require by subpoena, ordered by the Tax Court or any

division thereof and signed by a judge, the production of all such

books, papers, documents, correspondence, and other evidence within

the United States the production of which, in the opinion of the

Tax Court or division thereof, is necessary to enable the

transferee to ascertain the liability of the taxpayer or preceding

transferee and will not result in undue hardship to the taxpayer or

preceding transferee. Such examination shall be had at such time

and place as may be designated in the subpoena.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 843; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"

after "Secretary".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7454, 7465 of this title.

-End-

-CITE-

26 USC Sec. 6903 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 71 - TRANSFEREES AND FIDUCIARIES

-HEAD-

Sec. 6903. Notice of fiduciary relationship

-STATUTE-

(a) Rights and obligations of fiduciary

Upon notice to the Secretary that any person is acting for

another person in a fiduciary capacity, such fiduciary shall assume

the powers, rights, duties, and privileges of such other person in

respect of a tax imposed by this title (except as otherwise

specifically provided and except that the tax shall be collected

from the estate of such other person), until notice is given that

the fiduciary capacity has terminated.

(b) Manner of notice

Notice under this section shall be given in accordance with

regulations prescribed by the Secretary.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 843; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6040, 6901, 7609 of this

title.

-End-

-CITE-

26 USC Sec. 6904 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 71 - TRANSFEREES AND FIDUCIARIES

-HEAD-

Sec. 6904. Prohibition of injunctions

-STATUTE-

For prohibition of suits to restrain enforcement of liability

of transferee, or fiduciary, see section 7421(b).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 843.)

-End-

-CITE-

26 USC Sec. 6905 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 71 - TRANSFEREES AND FIDUCIARIES

-HEAD-

Sec. 6905. Discharge of executor from personal liability for

decedent's income and gift taxes

-STATUTE-

(a) Discharge of liability

In the case of liability of a decedent for taxes imposed by

subtitle A or by chapter 12, if the executor makes written

application (filed after the return with respect to such taxes is

made and filed in such manner and such form as may be prescribed by

regulations of the Secretary for release from personal liability

for such taxes, the Secretary may notify the executor of the amount

of such taxes. The executor, upon payment of the amount of which he

is notified, after 9 months after receipt of the application if no

notification is made by the Secretary before such date, shall be

discharged from personal liability for any deficiency in such tax

thereafter found to be due, and shall be entitled to a receipt or

writing showing such discharge.

(b) Definition of executor

For purposes of this section, the term "executor" means the

executor or administrator of the decedent appointed, qualified, and

acting within the United States.

(c) Cross reference

For discharge of executor from personal liability for taxes

imposed under chapter 11, see section 2204.

-SOURCE-

(Added Pub. L. 91-614, title I, Sec. 101(e)(1), Dec. 31, 1970, 84

Stat. 1837; amended Pub. L. 91-614, title I, Sec. 101(f), Dec. 31,

1970, 84 Stat. 1838; Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"

after "Secretary" wherever appearing.

1970 - Subsec. (a). Pub. L. 91-614, Sec. 101(f), substituted "9

months" for "1 year".

EFFECTIVE DATE OF 1970 AMENDMENT

Section 101(f) of Pub. L. 91-614 provided that the amendment made

by that section is effective with respect to the estates of

decedents dying after Dec. 31, 1973.

EFFECTIVE DATE

Section effective with respect to decedents dying after Dec. 31,

1970, see section 101(j) of Pub. L. 91-614, set out as an Effective

Date of 1970 Amendment note under section 2032 of this title.

-End-