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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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