§ 6901. — Transferred assets.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 26USC6901]
TITLE 26--INTERNAL REVENUE CODE
Subtitle F--Procedure and Administration
CHAPTER 71--TRANSFEREES AND FIDUCIARIES
Sec. 6901. Transferred assets
(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.
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\1\ So in original. Probably should be followed by a comma.
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(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.
(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.)
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.
Section Referred to in Other Sections
This section is referred to in section 6040 of this title.
