- 15 -
255, 1981-2 C.B. 481, 511. As we see it, the explanation of
section 2035(d)(3)(C) in the conference report supports our
holding that section 2035(d)(3)(C) is applicable in these cases.
Indeed, the plain language of section 2035(d)(3)(C), by referring
as it does to subchapter C of chapter 64, and not to section
6324(a)(1) to the exclusion of section 6324(a)(2), belies
petitioners' interpretation.
Petitioners' final contention is that there is an
insufficient "nexus" between the stock that they received from
decedent and the estate taxes that respondent seeks to collect
from them. Consistent with their argument under section 6901(a),
petitioners assert that there is no meaningful connection between
the estate tax liability--which is attributable to the
application of the section 2035(c) "gross-up" rule--and the stock
transfers that petitioners received from decedent.
The short answer to petitioners' contention is that Congress
did not restrict transferee liability to those instances where
there is an immediate link between an estate tax liability and
property transferred to a transferee. As previously discussed,
section 6324(a)(2) imposes personal liability for unpaid estate
taxes upon a transferee in the event that the transferee has
received property from a decedent that is includable in the gross
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011