26 U.S.C. § 2204 — Discharge of fiduciary from personal li-

Page 2628 TITLE 26—INTERNAL REVENUE CODE [§ 2202 [amending this section and section 1034 of this title] shall take effect on July 1, 1973.’’ [§ 2202. Repealed. Pub. L. 94–455, title XIX, § 1902(a)(8), Oct. 4, 1976, 90 Stat. 1805] Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 401; June 25, 1959, Pub. L. 86–70, § 22(a), 73 Stat. 146; July 12, 1960, Pub. L. 86–624, § 18(b), 74 Stat. 416, related to the pre- sumption that missionaries duly commissioned and serving under boards of foreign missions are residents of the State or the District of Columbia wherein they resided at the time of their commission and departure for service. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 2012 of this title. § 2203. Definition of executor The term ‘‘executor’’ wherever it is used in this title in connection with the estate tax im- posed by this chapter means the executor or ad- ministrator of the decedent, or, if there is no ex- ecutor or administrator appointed, qualified, and acting within the United States, then any person in actual or constructive possession of any property of the decedent. (Aug. 16, 1954, ch. 736, 68A Stat. 401.) § 2204. Discharge of fiduciary from personal li- ability (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 no- tify 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 dis- charged from personal liability for any defi- ciency 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 re- spect of the estate of a nonresident decedent) other than the executor makes written applica- tion 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 li- ability under subsection (a), or upon the expira- tion of 6 months after the making of such appli- cation 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 fidu- ciary is not liable for any such tax. Such appli- cation shall be accompanied by a copy of the in- strument, if any, under which such fiduciary is acting, a description of the property held by the fiduciary, and such other information for pur- poses of carrying out the provisions of this sec- tion as the Secretary may require by regula- tions. 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 pay- ment 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 determina- tion that he is not liable for any such tax, the fiduciary shall be discharged from personal li- ability 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 sub- section (a) and the last sentence of subsection (b), an agreement which meets the requirements of section 6324A (relating to special lien for es- tate 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 de- termining 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 attrib- utable 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. (Aug. 16, 1954, ch. 736, 68A Stat. 401; Pub. L. 91–614, title I, § 101(d)(1), (f), Dec. 31, 1970, 84 Stat. 1836, 1838; Pub. L. 94–455, title XIX, §§ 1902(a)(9), 1906(b)(13)(A), title XX, § 2004(d)(2), (f)(4), (6), Oct. 4, 1976, 90 Stat. 1805, 1834, 1870, 1872; Pub. L. 95–600, title VII, § 702(p)(1), Nov. 6, 1978, 92 Stat. 2937; Pub. L. 97–34, title IV, § 422(e)(1), (3), Aug. 13, 1981, 95 Stat. 316.) Editorial Notes AMENDMENTS 1981—Subsecs. (a) to (c). Pub. L. 97–34, § 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, §§ 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, §§ 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, § 2004(d)(2), added subsec. (c). 1970—Pub. L. 91–614, § 101(d)(1)(A), substituted ‘‘fidu- ciary’’ for ‘‘executor’’ in section catchline. Page 2629 TITLE 26—INTERNAL REVENUE CODE § 2207 Subsec. (a). Pub. L. 91–614, §§ 101(d)(1)(B), (C), (f), des- ignated 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 ex- tension was granted, and substituted ‘‘9 months’’ for ‘‘1 year’’ in two places. Subsec. (b). Pub. L. 91–614, § 101(d)(1)(D), added subsec. (b). Statutory Notes and Related Subsidiaries 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 Pub. L. 95–600, title VII, § 702(p)(2), Nov. 6, 1978, 92 Stat. 2937, provided that: ‘‘The amendment made by paragraph (1) [amending this section] shall apply with respect to the estates of decedents dying after Decem- ber 31, 1976.’’ EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1902(a)(9) of Pub. L. 94–455 ap- plicable 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 2012 of this title. Amendment by section 2004(d)(4) of Pub. L. 94–455 ap- plicable 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 ap- plicable 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. Pub. L. 91–614, title I, § 101(f), Dec. 31, 1970, 84 Stat. 1838, provided that the amendment made by that sec- tion is effective with respect to the estates of decedents dying after Dec. 31, 1973. § 2205. Reimbursement out of estate If the tax or any part thereof is paid by, or col- lected out of, that part of the estate passing to or in the possession of any person other than the executor in his capacity as such, such person shall be entitled to reimbursement out of any part of the estate still undistributed or by a just and equitable contribution by the persons whose interest in the estate of the decedent would have been reduced if the tax had been paid before the distribution of the estate or whose interest is subject to equal or prior liability for the pay- ment of taxes, debts, or other charges against the estate, it being the purpose and intent of this chapter that so far as is practicable and un- less otherwise directed by the will of the dece- dent the tax shall be paid out of the estate be- fore its distribution. (Aug. 16, 1954, ch. 736, 68A Stat. 402.) § 2206. Liability of life insurance beneficiaries Unless the decedent directs otherwise in his will, if any part of the gross estate on which tax has been paid consists of proceeds of policies of insurance on the life of the decedent receivable by a beneficiary other than the executor, the ex- ecutor shall be entitled to recover from such beneficiary such portion of the total tax paid as the proceeds of such policies bear to the taxable estate. If there is more than one such bene- ficiary, the executor shall be entitled to recover from such beneficiaries in the same ratio. In the case of such proceeds receivable by the surviving spouse of the decedent for which a deduction is allowed under section 2056 (relating to marital deduction), this section shall not apply to such proceeds except as to the amount thereof in ex- cess of the aggregate amount of the marital de- ductions allowed under such section. (Aug. 16, 1954, ch. 736, 68A Stat. 402; Pub. L. 94–455, title XX, § 2001(c)(1)(H), Oct. 4, 1976, 90 Stat. 1852.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 substituted ‘‘the taxable estate’’ for ‘‘the sum of the taxable estate and the amount of the exemption allowed in computing the taxable estate, determined under section 2051’’ after ‘‘policies bear to’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 applicable to estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94–455, set out as a note under section 2001 of this title. § 2207. Liability of recipient of property over which decedent had power of appointment Unless the decedent directs otherwise in his will, if any part of the gross estate on which the tax has been paid consists of the value of prop- erty included in the gross estate under section 2041, the executor shall be entitled to recover from the person receiving such property by rea- son of the exercise, nonexercise, or release of a power of appointment such portion of the total tax paid as the value of such property bears to the taxable estate. If there is more than one such person, the executor shall be entitled to re- cover from such persons in the same ratio. In the case of such property received by the sur- viving spouse of the decedent for which a deduc- tion is allowed under section 2056 (relating to marital deduction), this section shall not apply to such property except as to the value thereof reduced by an amount equal to the excess of the aggregate amount of the marital deductions al- lowed under section 2056 over the amount of pro- ceeds of insurance upon the life of the decedent receivable by the surviving spouse for which proceeds a marital deduction is allowed under such section. (Aug. 16, 1954, ch. 736, 68A Stat. 402; Pub. L. 94–455, title XX, § 2001(c)(1)(I), Oct. 4, 1976, 90 Stat. 1852.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 substituted ‘‘the taxable estate’’ for ‘‘the sum of the taxable estate and the amount of the exemption allowed in computing the taxable estate, determined under section 2052, or section 2106(a), as the case may be’’ after ‘‘property bears to’’.