
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[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.
