(a) Trustees, guardians, administrators, executors, and other persons acting in a fiduciary capacity who receive income taxable under this chapter for the benefit of residents of Tennessee shall be required to make returns under this chapter and to pay the tax levied by this chapter. However, a trustee of a charitable remainder trust, as defined in Internal Revenue Code § 664, codified in 26 U.S.C. § 664, shall not be required to make returns under this chapter nor to pay the tax, but shall report to each resident beneficiary the amount of taxable income distributed to such resident beneficiary, who shall be liable for the tax under this chapter. Additionally, the trustee of a trust, which is treated under 26 U.S.C. §§ 671-678 as owned by one (1) grantor or one (1) other person and which does not obtain a taxpayer identification number, as permitted under the Internal Revenue Code and accompanying regulations, shall not be required to file returns under this chapter nor to pay the tax, but shall report the total amount of income received by the trustee to the resident grantor or other person, who shall file the return and pay the tax levied by this chapter.

(b) Trustees, guardians, and other persons acting in a fiduciary capacity who are residents of Tennessee, and who receive income on behalf of nonresident beneficiaries, shall not be required to pay tax under this chapter even though such income be derived from stocks or bonds that would otherwise be assessable under this chapter. However, executors or administrators receiving income taxable under this chapter from stocks or bonds that were the property of a decedent who, at the time of death, resided in Tennessee shall pay tax upon the stocks or bonds until the time as such stocks or bonds have been distributed or transferred to distributees or legatees of the decedent.