Internal Revenue Code:Sec. 2204. Discharge of fiduciary from personal liability

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 11 - ESTATE TAX
        Subchapter C - Miscellaneous
      

Statute

    Sec. 2204. Discharge of fiduciary from personal liability
 
    (a) General rule
      If the executor makes written application to the Secretary for
    determination of the amount of the tax and discharge from personal
    liability therefor, the Secretary (as soon as possible, and in any
    event within 9 months after the making of such application, or, if
    the application is made before the return is filed, then within 9
    months after the return is filed, but not after the expiration of
    the period prescribed for the assessment of the tax in section
    6501) shall notify the executor of the amount of the tax.  The
    executor, on payment of the amount of which he is notified (other
    than any amount the time for payment of which is extended under
    sections 6161, 6163, or 6166), and on furnishing any bond which may
    be required for any amount for which the time for payment is
    extended, shall be discharged from personal liability for any
    deficiency in tax thereafter found to be due and shall be entitled
    to a receipt or writing showing such discharge.
    (b) Fiduciary other than the executor
      If a fiduciary (not including a fiduciary in respect of the
    estate of a nonresident decedent) other than the executor makes
    written application to the Secretary for determination of the
    amount of any estate tax for which the fiduciary may be personally
    liable, and for discharge from personal liability therefor, the
    Secretary upon the discharge of the executor from personal
    liability under subsection (a), or upon the expiration of 6 months
    after the making of such application by the fiduciary, if later,
    shall notify the fiduciary (1) of the amount of such tax for which
    it has been determined the fiduciary is liable, or (2) that it has
    been determined that the fiduciary is not liable for any such tax.
    Such application shall be accompanied by a copy of the instrument,
    if any, under which such fiduciary is acting, a description of the
    property held by the fiduciary, and such other information for
    purposes of carrying out the provisions of this section as the
    Secretary may require by regulations.  On payment of the amount of
    such tax for which it has been determined the fiduciary is liable
    (other than any amount the time for payment of which has been
    extended under section 6161, 6163, or 6166), and on furnishing any
    bond which may be required for any amount for which the time for
    payment has been extended, or on receipt by him of notification of
    a determination that he is not liable for any such tax, the
    fiduciary shall be discharged from personal liability for any
    deficiency in such tax thereafter found to be due and shall be
    entitled to a receipt or writing evidencing such discharge.
    (c) Special lien under section 6324A
      For purposes of the second sentence of subsection (a) and the
    last sentence of subsection (b), an agreement which meets the
    requirements of section 6324A (relating to special lien for estate
    tax deferred under section 6166) shall be treated as the furnishing
    of bond with respect to the amount for which the time for payment
    has been extended under section 6166.
    (d) Good faith reliance on gift tax returns
      If the executor in good faith relies on gift tax returns
    furnished under section 6103(e)(3) for determining the decedent's
    adjusted taxable gifts, the executor shall be discharged from
    personal liability with respect to any deficiency of the tax
    imposed by this chapter which is attributable to adjusted taxable
    gifts which -
        (1) are made more than 3 years before the date of the
      decedent's death, and
        (2) are not shown on such returns.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 401; Pub. L. 91-614, title I,
    Sec. 101(d)(1), (f), Dec. 31, 1970, 84 Stat. 1836, 1838; Pub. L.
    94-455, title XIX, Sec. 1902(a)(9), 1906(b)(13)(A), title XX, Sec.
    2004(d)(2), (f)(4), (6), Oct. 4, 1976, 90 Stat. 1805, 1834, 1870,
    1872; Pub. L. 95-600, title VII, Sec. 702(p)(1), Nov. 6, 1978, 92
    Stat. 2937; Pub. L. 97-34, title IV, Sec. 422(e)(1), (3), Aug. 13,
    1981, 95 Stat. 316.)
 

Miscellaneous

                                 AMENDMENTS
      1981 - Subsecs. (a) to (c). Pub. L. 97-34, Sec. 422(e)(1), (3),
    struck out reference to section 6166A in subsecs. (a) and (b), and
    two such references in subsec. (c).
      1978 - Subsec. (d). Pub. L. 95-600 added subsec. (d).
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A),
    2004(f)(6), substituted ''6166 or 6166A'' for ''or 6166'' after
    ''6161, 6163'' and struck out ''or his delegate'' in two places
    after ''Secretary''.
      Subsec. (b). Pub. L. 94-455, Sec. 1902(a)(9), 1906(b)(13)(A),
    2004(f)(4), (6), substituted ''6166 or 6166A'' for ''or 6166''
    after ''6161, 6163'', ''has been'' for ''has not been'' after
    ''payment of which'', and struck out ''or his delegate'' after
    ''Secretary''.
      Subsec. (c). Pub. L. 94-455, Sec. 2004(d)(2), added subsec. (c).
      1970 - Pub. L. 91-614, Sec. 101(d)(1)(A), substituted
    ''fiduciary'' for ''executor'' in section catchline.
      Subsec. (a). Pub. L. 91-614, Sec. 101(d)(1)(B), (C), (f),
    designated existing provisions as subsec. (a), inserted ''General
    Rule - '' immediately preceding first sentence and permitted a
    discharge of the executor even where an extension of time has been
    granted under sections 6161, 6163, or 6166 of this title, where a
    bond, if required, is provided to assure payment of taxes for which
    the extension was granted, and substituted ''9 months'' for ''1
    year'' in two places.
      Subsec. (b). Pub. L. 91-614, Sec. 101(d)(1)(D), added subsec.
    (b).
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-34 applicable to estates of decedents
    dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34,
    set out as a note under section 6166 of this title.
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Section 702(p)(2) of Pub. L. 95-600 provided that: ''The
    amendment made by paragraph (1) (amending this section) shall apply
    with respect to the estates of decedents dying after December 31,
    1976.''
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by section 1902(a)(9) of Pub. L. 94-455 applicable in
    the case of estates of decedents dying after Dec. 31, 1970, see
    section 1902(c)(1) of Pub. L. 94-455, set out as a note under
    section 2011 of this title.
      Amendment by section 2004(d)(4) of Pub. L. 94-455 applicable to
    estates of decedents dying after Dec. 31, 1976, see section 2004(g)
    of Pub. L. 94-455, set out as a note under section 6166 of this
    title.
                      EFFECTIVE DATE OF 1970 AMENDMENT
      Amendment by section 101(d)(1) 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.
      Section 101(f) of Pub. L. 91-614 provided that the amendment made
    by that section is effective with respect to the estates of
    decedents dying after Dec. 31, 1973.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2056A, 6040, 6314, 6324,
    6324A, 6504, 6905 of this title.