Internal Revenue Code:Sec. 2603. Liability for tax

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 13 - TAX ON GENERATION-SKIPPING TRANSFERS
        Subchapter A - Tax Imposed
      

Statute

    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.
 

Sources

    (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.)
 

Miscellaneous

                                 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.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 2662 of this title.