written application to the Commis- written application to the Commis- Sec. 825. (b) Cross reference.— For continuance of lien upon the gross estate after discharge of executor, see section 827 (c). Sec. 826. Collection of unpaid tax. 874 and 875) shall notify the ex- Sec. 825. (b) Cross reference. For continuance of lien upon the gross estate after discharge of executor, see section 827 (c). Sec. 826. Collection of unpaid tax. Sec. 826. (a) Sale of property. Sec. 826. (a) Sale of property. -If the tax herein imposed is not If the tax herein imposed is not paid on or before the due date paid on or before the due date thereof the collector shall, upon in- thereof the collector shall, upon instruction from the Commissioner, struction from the Commissioner, proceed to collect the tax under the proceed to collect the tax under the provisions of general law; or ap- provisions of general law; or appropriate proceedings may be com-propriate proceedings may be commenced in any court of the United menced in any court of the United States having jurisdiction, in the States having jurisdiction, in the name of the United States, to sub- name of the United States, to subject the property of the decedent to ject the property of the decedent to be sold under the judgment or de- be sold under the judgment or decree of the court. From the pro- cree of the court. From the proceeds of such sale the amount of ceeds of such sale the amount of the tax, together with the costs and the tax, together with the costs and expenses of every description to be expenses of every description to be allowed by the court, shall be first allowed by the court, shall be first paid, and the balance shall be de- paid, and the balance shall be deposited according to the order of posited according to the order of the court, to be paid under its the court, to be paid under its direction to the person entitled direction to the person entitled thereto. This subsection in so far thereto. This subsection in so far as it applies to the collection of a as it applies to the collection of a deficiency shall be subject to the deficiency shall be subject to the provisions of sections 871 and 891. | provisions of sections 871 and 891. Sec. 826. (b) Reimbursement out Sec. 826. (b) Reimbursement out of estate. If the tax or any part of estate. If the tax or any part thereof is paid by, or collected out of that part of the estate passing to or in the possession of, any person other than the executor in thereof is paid by, or collected Estates of Decedents Dying on or before Feb. 10, 1939 Sec. 314. (a). See p. 526, Eighth Edition. Sec. 314. (b). See p. 528, Eighth Edition. Estates of Decedents Estates of Decedents Estates of Decedents his capacity as such, such person his capacity as such, such person his capacity as such, such person shall be entitled to reimbursement shall be entitled to reimbursement shall be entitled to reimbursement out of any part of the estate still out of any part of the estate still out of any part of the estate still undistributed or by a just and eq- undistributed or by a just and eq- undistributed or by a just and equitable contribution by the per- uitable contribution by the per-uitable contribution by the persons whose interest in the estate sons whose interest in the estate sons whose interest in the estate of the decedent would have been of the decedent would have been of the decedent would have been reduced if the tax had been paid reduced if the tax had been paid reduced if the tax had been paid before the distribution of the es- before the distribution of the es- before the distribution of the estate or whose interest is subject tate or whose interest is subject tate or whose interest is subject to equal or prior liability for the to equal or prior liability for the to equal or prior liability for the payment of taxes, debts, or other payment of taxes, debts, or other payment of taxes, debts, or other charges against the estate, it be- charges against the estate, it be- charges against the estate, it be ing the purpose and intent of this ing the purpose and intent of this ing the purpose and intent of this subchapter that so far as is prac- subchapter that so far as is prac- subchapter that so far as is praeticable and unless otherwise di- ticable and unless otherwise di- ticable and unless otherwise directed by the will of the decedent rected by the will of the decedent rected by the will of the decedent the tax shall be paid out of the the tax shall be paid out of the the tax shall be paid out of the estate before its distribution. estate before its distribution. estate before its distribution. Sec. 826. (c) Liability of life in- Sec. 826. (c) Liability of life in- Sec. 826. (c) Liability of life insurance beneficiaries.-Unless the surance beneficiaries.- Unless surance beneficiaries.-If any part decedent directs otherwise in his the decedent directs otherwise in his of the gross estate consists of prowill, if any part of the gross estate will, if any part of the gross estate ceeds of policies of insurance upon upon which tax has been paid con- upon which tax has been paid con- the life of the decedent receivable sists of proceeds of policies of in- sists of proceeds of policies of in- by a beneficiary other than the surance upon the life of the dece-surance upon the life of the dece-executor, the executor shall be endent receivable by a beneficiary dent receivable by a beneficiary titled to recover from such beneother than the executor, the execu- other than the executor, the executor ficiary such portion of the total tor shall be entitled to recover from shall be entitled to recover from tax paid as the proceeds, in excess such beneficiary such portion of the such beneficiary such portion of the of $40,000, of such policies bear to total tax paid as the proceeds, of total tax paid as the proceeds, in the net estate. If there is more such policies bear to the sum of the excess of $40,000, of such policies than one such beneficiary the execnet estate and the amount of the bear to the sum of the net estate and utor shall be entitled to recover exemption allowed in computing the the amount of the exemption al- from such beneficiaries in the same net estate determined under section lowed in computing the net estate ratio. 935 (c). If there is more than one determined under section 935 (c). such beneficiary the executor shall If there is more than one such benebe entitled to recover from such ficiary the executor shall be entitled beneficiaries in the same ratio. to recover from such beneficiaries in the same ratio. Sec. 826 (c), I. R. C., supra, amended by Sec. 414 (b), and by Sec. 404 (b), R. A. of 1942, to read as above. Sec. 401, R. A. of 1942, makes both amendments applicable to estates of decedents dying after Oct. 21, 1942. For Sec. 826 (c), I. R. C., before amendment, see 1942 column. Sec. 826. (d) Liability of recipi Sec. 826 (c), I. R. C., supra, amended by Sec. 414 (b), R. A. of 1942, by striking out "in excess of $40,000." Sec. 826 (c), I. R. C., supra, again amended by Sec. 404 (b), R. A. of 1942, by omitting remaining language in stricken through type and adding language in italics. Sec. 401, R. A. of 1942, makes both amendments applicable to estates of decedents dying after Oct. 21, 1942. Sec. 826. (d) Liability of recipient of property over which dece- ent of property over which decedent had power of appointment.-dent had power of appointment.— Unless the decedent directs other- Unless the decedent directs otherwise in his will, if any part of the wise in his will, if any part of the gross estate upon which the tax has gross estate upon which the tax has been paid consists of the value of been paid consists of the value of property included in the gross estate property included in the gross estate under section 811 (f), the executor under section 811 (f), the executor shall be entitled to recover from the shall be entitled to recover from the person receiving such property by person receiving such property by reason of the exercise, nonexercise, reason of the exercise, nonexercise, Estates of Decedents 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 payment of taxes, debts, or other charges against the estate, it being the purpose and intent of this subchapter that so far as is practieable and unless otherwise directed by the will of the decedent the tax shall be paid out of the estate before its distribution. Estates of Decedents his capacity as such, such person Sec. 826. (c) Liability of life in- Sec. 826. (c) Liability of life insurance beneficiaries. If any part surance beneficiaries.-If any part of the gross estate consists of pro- of the gross estate consists of proceeds of policies of insurance upon ceeds of policies of insurance upon the life of the decedent receivable the life of the decedent receivable by a beneficiary other than the by a beneficiary other than the executor, the executor shall be en- executor, the executor shall be entitled to recover from such bene-titled to recover from such beneficiary such portion of the total tax paid as the proceeds, in excess of $40,000, of such policies bear to the net estate. If there is more than one such beneficiary the executor shall be entitled to recover from such beneficiaries in the same ratio. ficiary such portion of the total Estates of Decedents Dying on or before Feb. 10, 1939 or release of a power of appoint- or release of a power of appoint- Estates of Decedents Sec. 827. Lien for tax. Sec. 827. (a) Upon gross estate. Sec. 827. (a) Upon gross estate. Sec. 827. (a) Upon gross estate. -Unless the tax is sooner paid in -Unless the tax is sooner paid in-Unless the tax is sooner paid in full, it shall be a lien for ten years full, it shall be a lien for ten years full, it shall be a lien for ten years upon the gross estate of the de- upon the gross estate of the de- upon the gross estate of the decedent, except that such part of cedent, except that such part of cedent, except that such part of the gross estate as is used for the the gross estate as is used for the the gross estate as is used for the payment of charges against the payment of charges against the payment of charges against the estate and expenses of its adminis- estate and expenses of its adminis- estate and expenses of its adminis tration, allowed by any court hav-tration, allowed by any court hav-tration, allowed by any court having jurisdiction thereof, shall be ing jurisdiction thereof, shall be ing jurisdiction thereof, shall be divested of such lien. If the Com- divested of such lien. If the Com- divested of such lien. If the Commissioner is satisfied that the tax missioner is satisfied that the tax missioner is satisfied that the tax liability of an estate has been fully liability of an estate has been fully liability of an estate has been fully discharged or provided for, he discharged or provided for, he discharged or provided for, he may, under regulations prescribed may, under regulations prescribed by him with the approval of the by him with the approval of the Secretary, issue his certificate, re- Secretary, issue his certificate, releasing any or all property of such leasing any or all property of such estate from the lien herein im- estate from the lien herein imposed. posed. may, under regulations prescribed by him with the approval of the Secretary, issue his certificate, releasing any or all property of such estate from the lien herein imposed. Sec. 827. (b) Liability of trans- Sec. 827. (b) Liability of trans- Sec. 827. (b) Upon property of feree, etc.-If the tax herein im- feree, etc.-If the tax herein im- transferee.-If (1) except in the posed is not paid when due, then posed is not paid when due, then case of a bona fide sale for an adethe spouse, transferee, trustee, sur- the spouse, transferee, trustee, sur- quate and full consideration in viving tenant, person in possession viving tenant, person in possession money or money's worth, the deof the property by reason of the of the property by reason of the cedent makes a transfer, by trust exercise, nonexercise, or release of a exercise, nonexercise, or release of a or otherwise, of any property in power of appointment, or benefici- power of appointment, or benefici- contemplation of or intended to ary, who receives, or has on the date ary, who receives, or has on the date take effect in possession or enof the decedent's death, property of the decedent's death, property joyment at or after his death, or included in the gross estate under included in the gross estate under makes a transfer, by trust or section 811 (b), (c), (d), (e), (f), section 811 (b), (c), (d), (e), (f), otherwise, under which he has reor (g), to the extent of the value, or (g), to the extent of the value, tained for his life or for any period at the time of the decedent's death, at the time of the decedent's death, not ascertainable without referof such property, shall be person- of such property, shall be person-ence to his death or for any peally liable for such tax. Any part ally liable for such tax. Any part riod which does not in fact end beof such property sold by such of such property sold by such fore his death (A) the possession spouse, transferee, trustee, surviv- spouse, transferee, trustee, surviv- or enjoyment of, or the right to ing tenant, person in possession of ing tenant, person in possession of the income from, the property, or property by reason of the exercise, property by reason of the exercise, (B) the right, either alone or in nonexercise, or release of a power nonexercise, or release of a power conjunction with any person, to of appointment, or beneficiary, to of appointment, or beneficiary, to designate the persons who shall a bona fide purchaser for an ade-a bona fide purchaser for an ade- possess or enjoy the property or Estates of Decedents Estates of Decedents Estates of Decedents Dying on or before Feb. 10, 1939 Sec. 827. Lien for tax. Sec. 827. Lien for tax. Sec. 827. (a) Upon gross estate. Sec. 827. (a) Upon gross estate. -Unless the tax is sooner paid in-Unless the tax is sooner paid in full, it shall be a lien for ten years full, it shall be a lien for ten years upon the gross estate of the de- upon the gross estate of the decedent, except that such part of cedent, except that such part of the gross estate as is used for the the gross estate as is used for the payment of charges against the payment of charges against the estate and expenses of its adminis- estate and expenses of its administration, allowed by any court hav-tration, allowed by any court having jurisdiction thereof, shall be divested of such lien. If the Commissioner is satisfied that the tax liability of an estate has been fully discharged or provided for, he may, under regulations prescribed by him with the approval of the Secretary, issue his certificate, releasing any or all property of such estate from the lien herein imposed. ing jurisdiction thereof, shall be Sec. 827. (b) Upon property of Sec. 827. (b) Upon property of transferee. If (1) except in the transferee. If (1) except in the case of a bona fide sale for an ade- case of a bona fide sale for an adequate and full consideration in quate and full consideration in money or money's worth, the de- money or money's worth, the decedent makes a transfer, by trust cedent makes a transfer, by trust or otherwise, of any property in or otherwise, of any property in contemplation of or intended to contemplation of or intended to take effect in possession or en- take effect in possession or enjoyment at or after his death, or joyment at or after his death, or makes a transfer, by trust or makes a transfer, by trust or otherwise, under which he has re- otherwise, under which he has retained for his life or for any period tained for his life or for any penot ascertainable without refer- riod not ascertainable without refence to his death or for any pe-erence to his death or for any period which does not in fact end be- riod which does not in fact end before his death (A) the possession fore his death (A) the possession or enjoyment of, or the right to or enjoyment of, or the right to the income from, the property, or the income from, the property, or (B) the right, either alone or in (B) the right, either alone or in conjunction with any person, to conjunction with any person, to designate the persons who shall designate the persons who shall possess or enjoy the property or possess or enjoy the property or Sec. 315. (a). See p. 528, Eighth Edition. Sec. 315. (b). See p. 530, Eighth Edition. |