
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC2603]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
            CHAPTER 13--TAX ON GENERATION-SKIPPING TRANSFERS
 
                        Subchapter A--Tax Imposed
 
Sec. 2603. Liability for tax


(a) Personal liability

                      (1) Taxable distributions

        In the case of a taxable distribution, the tax imposed by 
    section 2601 shall be paid by the transferee.

                       (2) Taxable termination

        In the case of a taxable termination or a direct skip from a 
    trust, the tax shall be paid by the trustee.

                           (3) Direct skip

        In the case of a direct skip (other than a direct skip from a 
    trust), the tax shall be paid by the transferor.

(b) Source of tax

    Unless otherwise directed pursuant to the governing instrument by 
specific reference to the tax imposed by this chapter, the tax imposed 
by this chapter on a generation-skipping transfer shall be charged to 
the property constituting such transfer.

(c) Cross reference

            For provisions making estate and gift tax provisions with 
        respect to transferee liability, liens, and related matters 
        applicable to the tax imposed by section 2601, see section 2661.

(Added Pub. L. 94-455, title XX, Sec. 2006(a), Oct. 4, 1976, 90 Stat. 
1881; amended Pub. L. 99-514, title XIV, Sec. 1431(a), Oct. 22, 1986, 
100 Stat. 2718.)


                               Amendments

    1986--Pub. L. 99-514 amended section generally, substituting tax 
liability provisions consisting of language placing liability, under 
different circumstances, on the transferee, the trustee, or the 
transferor, the source of the tax, and a cross reference to section 2661 
for former provisions which covered the question of liability for tax 
with language covering the trustee and the distributee, the limitation 
on personal liability of the trustee who relied on certain information 
furnished by the Secretary, the limitation on personal liability of 
distributee, and the lien on property transferred until the tax was paid 
in full or became unenforceable by reason of lapse of time.


                    Effective Date of 1986 Amendment

    Section applicable to generation-skipping transfers (within the 
meaning of section 2611 of this title) made after Oct. 22, 1986, except 
as otherwise provided, see section 1433 of Pub. L. 99-514, set out as a 
note under section 2601 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 2662 of this title.
