U.S. Code » Title 26 » Subtitle Subtitle F— Procedure and Administration › Chapter CHAPTER 71— TRANSFEREES AND FIDUCIARIES

26 U.S.C. § 6901

Transferred assets

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(a) Method of collectionThe 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) TransfereesThe 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, 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.

(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 limitationsThe 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, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–258, § 3(f)(10), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 115–141, div. U, title IV, § 401(a)(322), Mar. 23, 2018, 132 Stat. 1199.)Editorial NotesAmendments

2018—Subsec. (a)(1)(B). Pub. L. 115–141 substituted “Code, in” for “Code in”.

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.

Notes of Decisions
Cited in 138 cases (13 in the last 5 years), 1958–2026 · leading case: United States v. Holmes, 727 F.3d 1230 (10th Cir. 2013).
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United States v. Holmes, 727 F.3d 1230 (10th Cir. 2013). · cites it 20× “Holmes relies on the provisions of 26 U.S.C. § 6901 , which authorize the IRS to assess tax against a transferee (and then, of course, to take steps to collect).”
Diebold Found., Inc. v. Comm'r of Internal Revenue, 736 F.3d 172 (2d Cir. 2013). · cites it 9× “(“Diebold”), could not be held liable as a transferee of a transferee under 26 U.S.C. § 6901 . As an initial matter, we conclude that the standard of review for mixed questions of law and fact in a case on review from the Tax Court is the same as that for a case on review after…”
Slone Revocable Trust v. Cir, 810 F.3d 599 (9th Cir. 2015). · cites it 14× “The Internal Revenue Service sent notices of tax liability to the former shareholders of Slone Broadcasting, claiming that they were liable as “transferees” for taxes owed on Slone Broadcasting’s asset sale, under 26 U.S.C. § 6901 , and that the IRS could disregard the form of…”
Starnes v. Comm'r, 680 F.3d 417 (4th Cir. 2012). · cites it 10× “It enacted the predecessor of 26 U.S.C. § 6901 (a), which today in pertinent part (only non-substantive revisions having been made since 1926) reads as follows: Method of collection.”
Frank Sawyer Trust of May 1992 v. Comm'r of Internal Reven, 712 F.3d 597 (1st Cir. 2013). · cites it 8× “The Tax Court’s Decision As an initial matter, the Tax Court noted that the federal statute authorizing the collection of taxes from transferees, 26 U.S.C. § 6901 (a)(1), provides only a procedural remedy against an alleged transferee; substantive state law controls whether a…”
Salus Mundi Found. v. Comm'r, 776 F.3d 1010 (9th Cir. 2014). · cites it 9× “OPINION NOONAN, Circuit Judge: OVERVIEW The IRS appeals the United States Tax Court’s decision that the Salus Mundi Foundation was not liable under 26 U.S.C. § 6901 for the unpaid tax liability arising from the sale of appreciated assets held by Double-D Ranch, Inc.”
United States v. Rodgers, 461 U.S. 677 (1983). · cites it 2× “A third party holding a property interest to which no lien has attached has the same interests vis-a-vis the Government regardless of whether the concurrent property interest to which a lien has attached is still in the hands of the delinquent taxpayer, or has been conveyed to…”
William J. Kardash, Sr. v. Comm'r of IRS, 866 F.3d 1249 (11th Cir. 2017). · cites it 4× “*1251 BOGGS, Circuit Judge: Appellant William Kardash challenges the Tax Court’s determination that he is liable as a transferee under 26 U.S.C. § 6901 for his former employer’s unpaid taxes.”
Peter J. Bresson (Transferee),petitioner-Appellant v. Comm'r of Internal Revenue, 213 F.3d 1173 (9th Cir. 2000). · cites it 5× “The IRS’s right to assess taxes directly against Petitioner de *1174 rives from the transferee liability provisions of 26 U.S.C. § 6901 , and from the provisions of the California Uniform Fraudulent Transfer Act (CUFTA), Cal.”
Feldman v. Comm'r, 779 F.3d 448 (7th Cir. 2015). · cites it 4× “This appeal raises a question of transferee liability under 26 U.S.C. § 6901 for a dissolved corporation’s unpaid federal taxes.”
United States v. Williams, 514 U.S. 527 (1995). · cites it 2× “Similarly, certain transferees may litigate the tax liabilities of the transferor; if the transfer qualifies as a fraudulent conveyance under state law, the Code treats the transferee as the taxpayer, see 26 U. S. C. § 6901 (a)(1)(A); 5 J. Rabkin & M.”
Mukamal v. Citibank N.A. (In re Kipnis), 555 B.R. 877 (Bankr. S.D. Florida 2016). · cites it 3× “While § 6502(a)(1) establishes the ten year deadline for the IRS to collect taxes, another IRC section, 26 U.S.C. § 6901 (a)(1)(A), provides the authority for the IRS to pursue avoidance actions against transferees of the taxpayers’ property.”
Show all 138 citing cases →
— 26 U.S.C. § 6901(a) — 2 cases
United States v. Alfano, 34 F. Supp. 2d 827 (E.D.N.Y 1999).
United States v. Mazzeo, 245 B.R. 435 (E.D.N.Y 1999).
— 26 U.S.C. § 6901(c) — 1 case
United States v. Russell, 327 F. Supp. 632 (1971).
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