Answered: oceeds are paid out to the…

oceeds are paid out to the beneficiaries, and the IRS later becomes aware that the benefits were subject to the estate tax: Select one: a. the IRS can follow (and attempt to colle

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 15DQ

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Question

If insurance proceeds are paid out to the beneficiaries, and the IRS later becomes aware that the benefits were subject to the estate tax:

Select one:

a. the IRS can follow (and attempt to collect) the life insurance proceeds as far as it can trace them

b. the IRS may only collect the amount owed from the executor of the estate.

c. the IRS may only collect the amount owed from the executor of the estate and any beneficiaries who received payment.

d. the insurer may be liable for the tax owed.

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