-CITE-
    26 USC CHAPTER 71 - TRANSFEREES AND FIDUCIARIES             01/19/04

-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                                            01/19/04

-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                                            01/19/04

-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                                            01/19/04

-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                                            01/19/04

-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                                            01/19/04

-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-