Minnesota Office of the Revisor of Statutes
[*Add Subtitle/link: Office]

Menu

Revisor of Statutes Menu

2006 Minnesota Statutes

This is a historical version of this statute section. Also view the most recent published version.

270C.58 LIABILITY OF TRANSFEREES AND FIDUCIARIES.
    Subdivision 1. Transferees and fiduciaries. The amounts of the following liabilities are,
except as otherwise provided in subdivision 3, assessed, collected, and paid in the same manner
and subject to the same provisions and limitations as a deficiency in a tax imposed by chapter
290, including any provisions of law for the collection of taxes:
(1) the liability, at law or in equity, of a transferee of property of a taxpayer for tax or
overpayment of a refund, including interest, additional amounts, and additions to the tax or
overpayment provided by law, imposed upon the taxpayer by chapter 290 or provided for in
chapter 290A; and
(2) the liability of a fiduciary under subdivision 2, for the payment of tax from the estate of the
taxpayer. The liability may reflect the amount of tax shown on the return or any deficiency in tax.
    Subd. 2. Tax as a personal debt of a fiduciary. A tax imposed by chapter 290 and an
overpayment of a refund provided for in chapter 290A, and interest and penalties, is a personal
debt of the taxpayer from the time the liability arises, regardless of when the time for discharging
the liability by payment occurs. The debt is, in the case of the personal representative of the estate
of a decedent and in the case of any fiduciary, that of the individual in the individual's official or
fiduciary capacity only, unless the individual has voluntarily distributed the assets held in that
capacity without reserving sufficient assets to pay the tax, interest, and penalties, in which event
the individual is personally liable for the deficiency.
    Subd. 3. Time limit for assessment and collection for transferee or fiduciary. The period
of limitation for assessment and collection of any liability of a transferee or fiduciary is as follows:
(1) In the case of the liability of an initial transferee of the property of the taxpayer, the tax
may be assessed within one year after the expiration of the period of limitation of assessment
against the taxpayer. The tax may be collected by action brought within one year after the
expiration of the period of limitation for the starting of an action against the taxpayer.
(2) In the case of the liability of the transferee of a transferee of the property of the taxpayer,
the tax may be assessed within one year after the expiration of the period of limitation for
assessment against the preceding transferee, but only if within 3-1/2 years after the expiration of
the period of limitation for assessment against the taxpayer. The tax may be collected by action
brought within one year after the expiration of the period of limitation for the starting of an action
against the preceding transferee, but only if within four years after the expiration of the period of
limitation for bringing an action against the taxpayer; except that if before the expiration of the
period of limitation for the assessment of the liability of the transferee a court proceeding for the
collection of the tax or liability has been begun against the taxpayer or last preceding transferee,
liability of the transferee expires one year after the return of execution in the court proceeding and
the period of limitation for collection by action will expire one year after the liability is assessed.
(3) In the case of the liability of a fiduciary, the tax may be assessed up to one year after the
liability arises or not later than the expiration of the period for collection of the tax for which
the liability arises, whichever is later, and may be collected by action brought within one year
after assessment.
(4) For the purposes of this subdivision, if the taxpayer is deceased, or in the case of a
corporation, has ended its existence, the period of limitation for assessment against the taxpayer
will be the period that would be in effect had death or termination of existence not occurred.
As used in this subdivision, the term "transferee" includes heir, legatee, devisee, and
distributee.
History: 2005 c 151 art 1 s 64

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569