
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: 26USC6324]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 64--COLLECTION
 
                      Subchapter C--Lien for Taxes
 
                             PART II--LIENS
 
Sec. 6324. Special liens for estate and gift taxes


(a) Liens for estate tax

    Except as otherwise provided in subsection (c)--

                        (1) Upon gross estate

        Unless the estate tax imposed by chapter 11 is sooner paid in 
    full, or becomes unenforceable by reason of lapse of time, it shall 
    be a lien upon the gross estate of the decedent for 10 years from 
    the date of death, except that such part of the gross estate as is 
    used for the payment of charges against the estate and expenses of 
    its administration, allowed by any court having jurisdiction 
    thereof, shall be divested of such lien.

               (2) Liability of transferees and others

        If the estate tax imposed by chapter 11 is not paid when due, 
    then the spouse, transferee, trustee (except the trustee of an 
    employees' trust which meets the requirements of section 401(a)), 
    surviving tenant, person in possession of the property by reason of 
    the exercise, nonexercise, or release of a power of appointment, or 
    beneficiary, who receives, or has on the date of the decedent's 
    death, property included in the gross estate under sections 2034 to 
    2042, inclusive, to the extent of the value, at the time of the 
    decedent's death, of such property, shall be personally liable for 
    such tax. Any part of such property transferred by (or transferred 
    by a transferee of) such spouse, transferee, trustee, surviving 
    tenant, person in possession, or beneficiary, to a purchaser or 
    holder of a security interest shall be divested of the lien provided 
    in paragraph (1) and a like lien shall then attach to all the 
    property of such spouse, transferee, trustee, surviving tenant, 
    person in possession, or beneficiary, or transferee of any such 
    person, except any part transferred to a purchaser or a holder of a 
    security interest.

            (3) Continuance after discharge of fiduciary

        The provisions of section 2204 (relating to discharge of 
    fiduciary from personal liability) shall not operate as a release of 
    any part of the gross estate from the lien for any deficiency that 
    may thereafter be determined to be due, unless such part of the 
    gross estate (or any interest therein) has been transferred to a 
    purchaser or a holder of a security interest, in which case such 
    part (or such interest) shall not be subject to a lien or to any 
    claim or demand for any such deficiency, but the lien shall attach 
    to the consideration received from such purchaser or holder of a 
    security interest, by the heirs, legatees, devisees, or 
    distributees.

(b) Lien for gift tax

    Except as otherwise provided in subsection (c), unless the gift tax 
imposed by chapter 12 is sooner paid in full or becomes unenforceable by 
reason of lapse of time, such tax shall be a lien upon all gifts made 
during the period for which the return was filed, for 10 years from the 
date the gifts are made. If the tax is not paid when due, the donee of 
any gift shall be personally liable for such tax to the extent of the 
value of such gift. Any part of the property comprised in the gift 
transferred by the donee (or by a transferee of the donee) to a 
purchaser or holder of a security interest shall be divested of the lien 
imposed by this subsection and such lien, to the extent of the value of 
such gift, shall attach to all the property (including after-acquired 
property) of the donee (or the transferee) except any part transferred 
to a purchaser or holder of a security interest.

(c) Exceptions

    (1) The lien imposed by subsection (a) or (b) shall not be valid as 
against a mechanic's lienor and, subject to the conditions provided by 
section 6323(b) (relating to protection for certain interests even 
though notice filed), shall not be valid with respect to any lien or 
interest described in section 6323(b).
    (2) If a lien imposed by subsection (a) or (b) is not valid as 
against a lien or security interest, the priority of such lien or 
security interest shall extend to any item described in section 6323(e) 
(relating to priority of interest and expenses) to the extent that, 
under local law, such item has the same priority as the lien or security 
interest to which it relates.

(Aug. 16, 1954, ch. 736, 68A Stat. 780; Pub. L. 88-272, title II, 
Sec. 236(b), (c)(2), Feb. 26, 1964, 78 Stat. 127, 128; Pub. L. 89-719, 
title I, Sec. 102, Nov. 2, 1966, 80 Stat. 1132; Pub. L. 91-614, title I, 
Secs. 101(d)(2), 102(d)(7), Dec. 31, 1970, 84 Stat. 1837, 1842.)


                               Amendments

    1970--Subsec. (a)(3). Pub. L. 91-614, Sec. 101(d)(2), substituted 
``fiduciary'' for ``executor'' in heading and text.
    Subsec. (b). Pub. L. 91-614, Sec. 102(d)(7), substituted ``period 
for which the return was filed'' for ``calendar year''.
    1966--Subsec. (a)(1). Pub. L. 89-719 inserted ``, or becomes 
unenforceable by reason of lapse of time,'' after ``sooner paid in 
full'' and substituted ``10 years from the date of death'' for ``10 
years upon the gross estate of the decedent''.
    Subsec. (a)(2). Pub. L. 89-719 substituted ``person in possession, 
or beneficiary, to a purchaser or holder of a security interest'' for 
``person in possession of property by reason of the exercise, 
nonexercise, or release of a power of appointment, or beneficiary, to a 
bona fide purchaser, mortgagee, or pledgee, for an adequate and full 
consideration in money and money's worth'' and ``except any part 
transferred to a purchaser or a holder of a security interest'' for 
``except any part transferred to a bona fide purchaser, mortgagee, or 
pledgee for an adequate and full consideration in money or money's 
worth''.
    Subsec. (a)(3). Pub. L. 89-719 substituted ``purchaser or a holder 
of a security interest'' for ``bona fide purchaser, mortgagee, or 
pledgee for an adequate and full consideration in money or money's 
worth'' and ``purchaser or holder of a security interest'' for 
``purchaser, mortgagee, or pledgee''.
    Subsec. (b). Pub. L. 89-719 substituted reference to exception 
provided in subsec. (c) for reference to exceptions provided in subsecs. 
(c) and (d), inserted reference to tax becoming unenforceable by reason 
of lapse of time, and substituted ``purchaser or holder of a security 
interest'' for ``bona-fide purchaser, mortgagee, or pledgee, for an 
adequate and full consideration in money or money's worth''.
    Subsec. (c). Pub. L. 89-719 redesignated as par. (1) provisions 
formerly constituting subsec. (c), substituted ``valid as against a 
mechanic's lienor and, subject to the conditions provided by section 
6323(b) (relating to protection for certain interests even though 
noticed filed), shall not be valid with respect to any lien or interest 
described in section 6323(b)'' for ``valid with respect to a security, 
as defined in section 6323(c)(2), as against any mortgagee, pledgee, or 
purchaser of any such security, for an adequate and full consideration 
in money or money's worth, if at the time of such mortgage, pledge, or 
purchase such mortgagee, pledgee, or purchaser is without notice or 
knowledge of the existence of such lien'', and added par. (2).
    Subsec. (d). Pub. L. 89-719 struck out subsec. (d) dealing with 
exceptions in the case of motor vehicles. See subsec. (c) above and 
reference therein to section 6323(b).
    1964--Subsecs. (a), (b). Pub. L. 88-272, Sec. 236(c)(2), inserted 
``and subsection (d) (relating to purchases of motor vehicles)''.
    Subsec. (d). Pub. L. 88-272, Sec. 236(b), added subsec. (d).


                    Effective Date of 1970 Amendment

    Amendment by section 101(d)(2) of Pub. L. 91-614 applicable with 
respect to decedents dying after Dec. 31, 1970, see section 101(j) of 
Pub. L. 91-614, set out as a note under section 2032 of this title.
    Amendment by section 102(d)(7) of Pub. L. 91-614 applicable with 
respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 
91-614, set out as a note under section 2501 of this title.


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966, 
regardless of when title or lien of United States arose or when lien or 
interest of another person was acquired, with certain exceptions, see 
section 114(a)-(c) of Pub. L. 89-719, set out as a note under section 
6323 of this title.


                    Effective Date of 1964 Amendment

    Amendment by Pub. L. 88-272 applicable to purchases made after Feb. 
26, 1964, see section 236(d) of Pub. L. 88-272, set out as a note under 
section 6323 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2056A, 6323, 6324A, 6325, 
6901 of this title.
