- 16 -
that if the gift tax is not paid when due, the donee is
personally liable for the gift tax to the extent of the value of
the gift. See Mississippi Valley Trust Co. v. Commissioner, 147
F.2d 186, 187-188 (8th Cir. 1945), affg. a Memorandum Opinion of
this Court; O'Neal v. Commissioner, 102 T.C. 666, 675 (1994).
Section 6324(b) imposes liability at law upon a donee. See
O'Neal v. Commissioner, supra; Fletcher Trust Co. v.
Commissioner, 1 T.C. 798 (1943) (construing the predecessor to
section 6324(b)), affd. 141 F.2d 36, 40 (7th Cir. 1944).
Respondent did not in this case, and is not required to, first
assert deficiencies against the donors or take other steps to
collect from the donors. See Mississippi Valley Trust Co. v.
Commissioner, supra at 188; O'Neal v. Commissioner, supra.
Likewise, there is no requirement under section 6324(b) that the
period of limitations on assessment of tax against the donor be
open at the time the notice of transferee liability is issued to
the donee. If the tax “is not paid when due”, the donee is
personally liable for the tax to the extent of the gift under
section 6324(b). See O'Neal v. Commissioner, supra at 676.
4(...continued)
shall be a lien upon all gifts made during the period
for which the return was filed, for 10 years from the
date the gifts are made. If the tax is not paid when
due, the donee of any gift shall be personally liable
for such tax to the extent of the value of such gift. *
* *
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011