26 U.S.C. § 2603 — Liability for tax

Page 2653 TITLE 26—INTERNAL REVENUE CODE [§ 2604 Code of 1986, the provisions of such subsection (d) shall apply.’’ [Amendment of section 2006(c) of Pub. L. 94–455, set out above, by section 702(n)(1) of Pub. L. 95–600, effec- tive Oct. 4, 1976, see section 702(n)(5) of Pub. L. 95–600, set out as an Effective Date of 1978 Amendment note under section 2613 of this title.] § 2602. Amount of tax The amount of the tax imposed by section 2601 is— (1) the taxable amount (determined under subchapter C), multiplied by (2) the applicable rate (determined under subchapter E). (Added Pub. L. 94–455, title XX, § 2006(a), Oct. 4, 1976, 90 Stat. 1879; amended Pub. L. 95–600, title VII, § 702(h)(2), (n)(4), Nov. 6, 1978, 92 Stat. 2931, 2936; Pub. L. 97–34, title IV, § 403(a)(2)(B), Aug. 13, 1981, 95 Stat. 301; Pub. L. 99–514, title XIV, § 1431(a), Oct. 22, 1986, 100 Stat. 2718.) Editorial Notes AMENDMENTS 1986—Pub. L. 99–514 amended section generally, sub- stituting provisions that amount of tax imposed by sec- tion 2601 is the taxable amount (determined under sub- chapter C), multiplied by the applicable rate (deter- mined under subchapter E) for former provisions which set out in detail the calculations and formulae for de- termining amount of tax imposed by section 2601. 1981—Subsec. (c)(5). Pub. L. 97–34 redesignated sub- pars. (B) and (C) as (A) and (B), respectively, and struck out former subpar. (A) relating to adjustments to mar- ital deduction and providing that if the generation- skipping transfer occurs at the same time as, or within 9 months after, the death of the deemed transferor, for purposes of section 2056, relating to bequests, etc., to surviving spouse, the value of the gross estate of the deemed transferor shall be deemed to be increased by the amount of such transfer. 1978—Subsec. (a)(1)(C). Pub. L. 95–600, § 702(h)(2), in- serted ‘‘, as modified by section 2001(e)’’ after ‘‘within the meaning of section 2001(b)’’. Subsec. (d)(1)(A). Pub. L. 95–600, § 702(n)(4)(A), inserted ‘‘(or at the same time as the death of a beneficiary of the trust assigned to a higher generation than such deemed transferor)’’ after ‘‘such deemed transferor’’. Subsec. (d)(2)(A). Pub. L. 95–600, § 702(n)(4)(B), inserted ‘‘(or beneficiary)’’ after ‘‘the deemed transferor’’. Statutory Notes and Related Subsidiaries 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 sec- tion 1433 of Pub. L. 99–514, set out as a note under sec- tion 2601 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–34 applicable to estates of decedents dying after Dec. 31, 1981, but inapplicable under certain conditions under will executed before date which is 30 days after Aug. 13, 1981, or under trust created by such date, see section 403(e) of Pub. L. 97–34, set out as a note under section 2056 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by section 702(h)(2) of Pub. L. 95–600 ap- plicable to estates of decedents dying after Dec. 31, 1976, except that such amendment shall not apply to transfers made before Jan. 1, 1977, see section 702(h)(3) of Pub. L. 95–600, set out as a note under section 2001 of this title. Amendment by section 702(n)(4) of Pub. L. 95–600 ef- fective as if included in this chapter as added by sec- tion 2006 of Pub. L. 94–455, see section 702(n)(5) of Pub. L. 95–600, set out as a note under section 2613 of this title. § 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 di- rect 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 di- rect skip from a trust), the tax shall be paid by the transferor. (b) Source of tax Unless otherwise directed pursuant to the gov- erning 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 provi- sions with respect to transferee liability, liens, and related matters applicable to the tax imposed by section 2601, see section 2661. (Added Pub. L. 94–455, title XX, § 2006(a), Oct. 4, 1976, 90 Stat. 1881; amended Pub. L. 99–514, title XIV, § 1431(a), Oct. 22, 1986, 100 Stat. 2718.) Editorial Notes AMENDMENTS 1986—Pub. L. 99–514 amended section generally, sub- stituting 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 dis- tributee, 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. Statutory Notes and Related Subsidiaries 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 sec- tion 1433 of Pub. L. 99–514, set out as a note under sec- tion 2601 of this title. [§ 2604. Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(95)(B)(i), Dec. 19, 2014, 128 Stat. 4051] Section, added Pub. L. 99–514, title XIV, § 1431(a), Oct. 22, 1986, 100 Stat. 2718; amended Pub. L. 107–16, title V, § 532(c)(10), June 7, 2001, 115 Stat. 75, related to credit for certain State generation-skipping transfer taxes.