Subpart A—Information Concerning Persons Subject to Special Provisions
Editorial Notes
Amendments
2020—
2017—
2015—
2010—
2008—
2006—
2004—
2001—
1997—
1996—
1990—
1986—
1984—
1982—
1980—
1978—
1976—
1964—
1960—
1958—
Statutory Notes and Related Subsidiaries
Authority To Waive Certain Information Reporting Requirements
2 So in original. The words "With Respect" probably should not be capitalized.
§6031. Return of partnership income
(a) General rule
Every partnership (as defined in section 761(a)) shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A, and such other information, for the purpose of carrying out the provisions of subtitle A as the Secretary may by forms and regulations prescribe, and shall include in the return the names and addresses of the individuals who would be entitled to share in the taxable income if distributed and the amount of the distributive share of each individual.
(b) Copies to partners
Each partnership required to file a return under subsection (a) for any partnership taxable year shall (on or before the day on which the return for such taxable year was required to be filed) furnish to each person who is a partner or who holds an interest in such partnership as a nominee for another person at any time during such taxable year a copy of such information required to be shown on such return as may be required by regulations. Information required to be furnished by the partnership under this subsection may not be amended after the due date of the return under subsection (a) to which such information relates, except—
(1) in the case of a partnership which has elected the application of section 6221(b) for the taxable year,
(2) as provided in the procedures under section 6225(c),
(3) with respect to statements under section 6226, or
(4) as otherwise provided by the Secretary.
(c) Nominee reporting
Any person who holds an interest in a partnership as a nominee for another person—
(1) shall furnish to the partnership, in the manner prescribed by the Secretary, the name and address of such other person, and any other information for such taxable year as the Secretary may by form and regulation prescribe, and
(2) shall furnish in the manner prescribed by the Secretary such other person the information provided by such partnership under subsection (b).
(d) Separate statement of items of unrelated business taxable income
In the case of any partnership regularly carrying on a trade or business (within the meaning of section 512(c)(1)), the information required under subsection (b) to be furnished to its partners shall include such information as is necessary to enable each partner to compute its distributive share of partnership income or loss from such trade or business in accordance with section 512(a)(1), but without regard to the modifications described in paragraphs (8) through (15) of section 512(b).
(e) Foreign partnerships
(1) Exception for foreign partnership
Except as provided in paragraph (2), the preceding provisions of this section shall not apply to a foreign partnership.
(2) Certain foreign partnerships required to file return
Except as provided in regulations prescribed by the Secretary, this section shall apply to a foreign partnership for any taxable year if for such year, such partnership has—
(A) gross income derived from sources within the United States, or
(B) gross income which is effectively connected with the conduct of a trade or business within the United States.
The Secretary may provide simplified filing procedures for foreign partnerships to which this section applies.
(f) Electing investment partnerships
In the case of any electing investment partnership (as defined in section 743(e)(6)),1 the information required under subsection (b) to be furnished to any partner to whom section 743(e)(2) applies shall include such information as is necessary to enable the partner to compute the amount of losses disallowed under section 743(e).
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
Section 743(e)(6), referred to in subsec. (f), was redesignated section 743(e)(5) by
Amendments
2018—Subsec. (b).
2015—Subsec. (b).
2004—Subsec. (f).
1997—Subsec. (b).
Subsec. (e).
1988—Subsec. (d).
1986—Subsec. (b).
Subsec. (c).
1982—Subsec. (a).
Subsec. (b).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by section 1223(a) of
Effective Date of 1988 Amendment
Effective Date of 1986 Amendment
Amendment by section 1501(c)(16) of
Effective Date of 1982 Amendment
Amendment by
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
Returns Required From All Partnerships With United States Partners
Special Rule for Certain International Satellite Partnerships
For provision that this section is not applicable to certain international satellite partnerships, see section 406 of
1 See References in Text note below.
§6032. Returns of banks with respect to common trust funds
Every bank (as defined in section 581) maintaining a common trust fund shall make a return for each taxable year, stating specifically, with respect to such fund, the items of gross income and the deductions allowed by subtitle A, and shall include in the return the names and addresses of the participants who would be entitled to share in the taxable income if distributed and the amount of the proportionate share of each participant. The return shall be executed in the same manner as a return made by a corporation pursuant to the requirements of sections 6012 and 6062.
(Aug. 16, 1954, ch. 736,
§6033. Returns by exempt organizations
(a) Organizations required to file
(1) In general
Except as provided in paragraph (3), every organization exempt from taxation under section 501(a) shall file an annual return, stating specifically the items of gross income, receipts, and disbursements, and such other information for the purpose of carrying out the internal revenue laws as the Secretary may by forms or regulations prescribe, and shall keep such records, render under oath such statements, make such other returns, and comply with such rules and regulations as the Secretary may from time to time prescribe; except that, in the discretion of the Secretary, any organization described in section 401(a) may be relieved from stating in its return any information which is reported in returns filed by the employer which established such organization.
(2) Being a party to certain reportable transactions
Every tax-exempt entity described in section 4965(c) shall file (in such form and manner and at such time as determined by the Secretary) a disclosure of—
(A) such entity's being a party to any prohibited tax shelter transaction (as defined in section 4965(e)), and
(B) the identity of any other party to such transaction which is known by such tax-exempt entity.
(3) Exceptions from filing
(A) Mandatory exceptions
Paragraph (1) shall not apply to—
(i) churches, their integrated auxiliaries, and conventions or associations of churches,
(ii) any organization (other than a private foundation, as defined in section 509(a)) described in subparagraph (C), the gross receipts of which in each taxable year are normally not more than $5,000, or
(iii) the exclusively religious activities of any religious order.
(B) Discretionary exceptions
The Secretary may relieve any organization required under paragraph (1) (other than an organization described in section 509(a)(3)) to file an information return from filing such a return where he determines that such filing is not necessary to the efficient administration of the internal revenue laws.
(C) Certain organizations
The organizations referred to in subparagraph (A)(ii) are—
(i) a religious organization described in section 501(c)(3);
(ii) an educational organization described in section 170(b)(1)(A)(ii);
(iii) a charitable organization, or an organization for the prevention of cruelty to children or animals, described in section 501(c)(3), if such organization is supported, in whole or in part, by funds contributed by the United States or any State or political subdivision thereof, or is primarily supported by contributions of the general public;
(iv) an organization described in section 501(c)(3), if such organization is operated, supervised, or controlled by or in connection with a religious organization described in clause (i);
(v) an organization described in section 501(c)(8); and
(vi) an organization described in section 501(c)(1), if such organization is a corporation wholly owned by the United States or any agency or instrumentality thereof, or a wholly-owned subsidiary of such a corporation.
(b) Certain organizations described in section 501(c)(3)
Every organization described in section 501(c)(3) which is subject to the requirements of subsection (a) shall furnish annually information, at such time and in such manner as the Secretary may by forms or regulations prescribe, setting forth—
(1) its gross income for the year,
(2) its expenses attributable to such income and incurred within the year,
(3) its disbursements within the year for the purposes for which it is exempt,
(4) a balance sheet showing its assets, liabilities, and net worth as of the beginning of such year,
(5) the total of the contributions and gifts received by it during the year, and the names and addresses of all substantial contributors,
(6) the names and addresses of its foundation managers (within the meaning of section 4946(b)(1)) and highly compensated employees,
(7) the compensation and other payments made during the year to each individual described in paragraph (6),
(8) in the case of an organization with respect to which an election under section 501(h) is effective for the taxable year, the following amounts for such organization for such taxable year:
(A) the lobbying expenditures (as defined in section 4911(c)(1)),
(B) the lobbying nontaxable amount (as defined in section 4911(c)(2)),
(C) the grass roots expenditures (as defined in section 4911(c)(3)), and
(D) the grass roots nontaxable amount (as defined in section 4911(c)(4)),
(9) such other information with respect to direct or indirect transfers to, and other direct or indirect transactions and relationships with, other organizations described in section 501(c) (other than paragraph (3) thereof) or section 527 as the Secretary may require to prevent—
(A) diversion of funds from the organization's exempt purpose, or
(B) misallocation of revenues or expenses,
(10) the respective amounts (if any) of the taxes imposed on the organization, or any organization manager of the organization, during the taxable year under any of the following provisions (and the respective amounts (if any) of reimbursements paid by the organization during the taxable year with respect to taxes imposed on any such organization manager under any of such provisions):
(A) section 4911 (relating to tax on excess expenditures to influence legislation),
(B) section 4912 (relating to tax on disqualifying lobbying expenditures of certain organizations),
(C) section 4955 (relating to taxes on political expenditures of section 501(c)(3) organizations), except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded, and
(D) section 4959 (relating to taxes on failures by hospital organizations),
(11) the respective amounts (if any) of—
(A) the taxes imposed with respect to the organization on any organization manager, or any disqualified person, during the taxable year under section 4958 (relating to taxes on private excess benefit from certain charitable organizations), and
(B) reimbursements paid by the organization during the taxable year with respect to taxes imposed under such section,
except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded,
(12) such information as the Secretary may require with respect to any excess benefit transaction (as defined in section 4958),
(13) such information with respect to disqualified persons as the Secretary may prescribe,
(14) such information as the Secretary may require with respect to disaster relief activities,
(15) in the case of an organization to which the requirements of section 501(r) apply for the taxable year—
(A) a description of how the organization is addressing the needs identified in each community health needs assessment conducted under section 501(r)(3) and a description of any such needs that are not being addressed together with the reasons why such needs are not being addressed, and
(B) the audited financial statements of such organization (or, in the case of an organization the financial statements of which are included in a consolidated financial statement with other organizations, such consolidated financial statement), and
(16) such other information for purposes of carrying out the internal revenue laws as the Secretary may require.
For purposes of paragraph (8), if section 4911(f) applies to the organization for the taxable year, such organization shall furnish the amounts with respect to the affiliated group as well as with respect to such organization.
(c) Additional provisions relating to private foundations
In the case of an organization which is a private foundation (within the meaning of section 509(a))—
(1) the Secretary shall by regulations provide that the private foundation shall include in its annual return under this section such information (not required to be furnished by subsection (b) or the forms or regulations prescribed thereunder) as would have been required to be furnished under section 6056 (relating to annual reports by private foundations) as such section 6056 was in effect on January 1, 1979, and
(2) the foundation managers shall furnish copies of the annual return under this section to such State officials, at such times, and under such conditions, as the Secretary may by regulations prescribe.
Nothing in paragraph (1) shall require the inclusion of the name and address of any recipient (other than a disqualified person within the meaning of section 4946) of 1 or more charitable gifts or grants made by the foundation to such recipient as an indigent or needy person if the aggregate of such gifts or grants made by the foundation to such recipient during the year does not exceed $1,000.
(d) Section to apply to nonexempt charitable trusts and nonexempt private foundations
The following organizations shall comply with the requirements of this section in the same manner as organizations described in section 501(c)(3) which are exempt from tax under section 501(a):
(1) Nonexempt charitable trusts
A trust described in section 4947(a)(1) (relating to nonexempt charitable trusts).
(2) Nonexempt private foundations
A private foundation which is not exempt from tax under section 501(a).
(e) Special rules relating to lobbying activities
(1) Reporting requirements
(A) In general
If this subsection applies to an organization for any taxable year, such organization—
(i) shall include on any return required to be filed under subsection (a) for such year information setting forth the total expenditures of the organization to which section 162(e)(1) applies and the total amount of the dues or other similar amounts paid to the organization to which such expenditures are allocable, and
(ii) except as provided in paragraphs (2)(A)(i) and (3), shall, at the time of assessment or payment of such dues or other similar amounts, provide notice to each person making such payment which contains a reasonable estimate of the portion of such dues or other similar amounts to which such expenditures are so allocable.
(B) Organizations to which subsection applies
(i) In general
This subsection shall apply to any organization which is exempt from taxation under section 501 other than an organization described in section 501(c)(3).
(ii) Special rule for in-house expenditures
This subsection shall not apply to the in-house expenditures (within the meaning of section 162(e)(4)(B)(ii)) of an organization for a taxable year if such expenditures do not exceed $2,000. In determining whether a taxpayer exceeds the $2,000 limit under this clause, there shall not be taken into account overhead costs otherwise allocable to activities described in subparagraphs (A) and (D) of section 162(e)(1).
(iii) Coordination with section 527(f)
This subsection shall not apply to any amount on which tax is imposed by reason of section 527(f).
(C) Allocation
For purposes of this paragraph—
(i) In general
Expenditures to which section 162(e)(1) applies shall be treated as paid out of dues or other similar amounts to the extent thereof.
(ii) Carryover of lobbying expenditures in excess of dues
If expenditures to which section 162(e)(1) applies exceed the dues or other similar amounts for any taxable year, such excess shall be treated as expenditures to which section 162(e)(1) applies which are paid or incurred by the organization during the following taxable year.
(2) Tax imposed where organization does not notify
(A) In general
If an organization—
(i) elects not to provide the notices described in paragraph (1)(A) for any taxable year, or
(ii) fails to include in such notices the amount allocable to expenditures to which section 162(e)(1) applies (determined on the basis of actual amounts rather than the reasonable estimates under paragraph (1)(A)(ii)),
then there is hereby imposed on such organization for such taxable year a tax in an amount equal to the product of the highest rate of tax imposed by section 11 for the taxable year and the aggregate amount not included in such notices by reason of such election or failure.
(B) Waiver where future adjustments made
The Secretary may waive the tax imposed by subparagraph (A)(ii) for any taxable year if the organization agrees to adjust its estimates under paragraph (1)(A)(ii) for the following taxable year to correct any failures.
(C) Tax treated as income tax
For purposes of this title, the tax imposed by subparagraph (A) shall be treated in the same manner as a tax imposed by
(3) Exception where dues generally nondeductible
Paragraph (1)(A) shall not apply to an organization which establishes to the satisfaction of the Secretary that substantially all of the dues or other similar amounts paid by persons to such organization are not deductible without regard to section 162(e).
(f) Certain organizations described in section 501(c)(4)
Every organization described in section 501(c)(4) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)—
(1) the information referred to in paragraphs (11), (12) and (13) of subsection (b) with respect to such organization, and
(2) in the case of the first such return filed by such an organization after submitting a notice to the Secretary under section 506(a), such information as the Secretary shall by regulation require in support of the organization's treatment as an organization described in section 501(c)(4).
(g) Returns required by political organizations
(1) In general
This section shall apply to a political organization (as defined by section 527(e)(1)) which has gross receipts of $25,000 or more for the taxable year. In the case of a political organization which is a qualified State or local political organization (as defined in section 527(e)(5)), the preceding sentence shall be applied by substituting "$100,000" for "$25,000".
(2) Annual returns
Political organizations described in paragraph (1) shall file an annual return—
(A) containing the information required, and complying with the other requirements, under subsection (a)(1) for organizations exempt from taxation under section 501(a), with such modifications as the Secretary considers appropriate to require only information which is necessary for the purposes of carrying out section 527, and
(B) containing such other information as the Secretary deems necessary to carry out the provisions of this subsection.
(3) Mandatory exceptions from filing
Paragraph (2) shall not apply to an organization—
(A) which is a State or local committee of a political party, or political committee of a State or local candidate,
(B) which is a caucus or association of State or local officials,
(C) which is an authorized committee (as defined in section 301(6) of the Federal Election Campaign Act of 1971) of a candidate for Federal office,
(D) which is a national committee (as defined in section 301(14) of the Federal Election Campaign Act of 1971) of a political party,
(E) which is a United States House of Representatives or United States Senate campaign committee of a political party committee,
(F) which is required to report under the Federal Election Campaign Act of 1971 as a political committee (as defined in section 301(4) of such Act), or
(G) to which section 527 applies for the taxable year solely by reason of subsection (f)(1) of such section.
(4) Discretionary exception
The Secretary may relieve any organization required under paragraph (2) to file an information return from filing such a return if the Secretary determines that such filing is not necessary to the efficient administration of the internal revenue laws.
(h) Controlling organizations
Each controlling organization (within the meaning of section 512(b)(13)) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)—
(1) any interest, annuities, royalties, or rents received from each controlled entity (within the meaning of section 512(b)(13)),
(2) any loans made to each such controlled entity, and
(3) any transfers of funds between such controlling organization and each such controlled entity.
(i) Additional notification requirements
Any organization the gross receipts of which in any taxable year result in such organization being referred to in subsection (a)(3)(A)(ii) or (a)(3)(B)—
(1) shall furnish annually, in electronic form, and at such time and in such manner as the Secretary may by regulations prescribe, information setting forth—
(A) the legal name of the organization,
(B) any name under which such organization operates or does business,
(C) the organization's mailing address and Internet web site address (if any),
(D) the organization's taxpayer identification number,
(E) the name and address of a principal officer, and
(F) evidence of the continuing basis for the organization's exemption from the filing requirements under subsection (a)(1), and
(2) upon the termination of the existence of the organization, shall furnish notice of such termination.
(j) Loss of exempt status for failure to file return or notice
(1) In general
(A) Notice
If an organization described in subsection (a)(1) or (i) fails to file the annual return or notice required under either subsection for 2 consecutive years, the Secretary shall notify the organization—
(i) that the Internal Revenue Service has no record of such a return or notice from such organization for 2 consecutive years, and
(ii) about the revocation that will occur under subparagraph (B) if the organization fails to file such a return or notice by the due date for the next such return or notice required to be filed.
The notification under the preceding sentence shall include information about how to comply with the filing requirements under subsections (a)(1) and (i).
(B) Revocation
If an organization described in subsection (a)(1) or (i) fails to file an annual return or notice required under either subsection for 3 consecutive years, such organization's status as an organization exempt from tax under section 501(a) shall be considered revoked on and after the date set by the Secretary for the filing of the third annual return or notice. The Secretary shall publish and maintain a list of any organization the status of which is so revoked.
(2) Application necessary for reinstatement
Any organization the tax-exempt status of which is revoked under paragraph (1) must apply in order to obtain reinstatement of such status regardless of whether such organization was originally required to make such an application.
(3) Retroactive reinstatement if reasonable cause shown for failure
If, upon application for reinstatement of status as an organization exempt from tax under section 501(a), an organization described in paragraph (1) can show to the satisfaction of the Secretary evidence of reasonable cause for the failure described in such paragraph, the organization's exempt status may, in the discretion of the Secretary, be reinstated effective from the date of the revocation under such paragraph.
(k) Additional provisions relating to sponsoring organizations
Every organization described in section 4966(d)(1) shall, on the return required under subsection (a) for the taxable year—
(1) list the total number of donor advised funds (as defined in section 4966(d)(2)) it owns at the end of such taxable year,
(2) indicate the aggregate value of assets held in such funds at the end of such taxable year, and
(3) indicate the aggregate contributions to and grants made from such funds during such taxable year.
(l) Additional provisions relating to supporting organizations
Every organization described in section 509(a)(3) shall, on the return required under subsection (a)—
(1) list the supported organizations (as defined in section 509(f)(3)) with respect to which such organization provides support,
(2) indicate whether the organization meets the requirements of clause (i), (ii), or (iii) of section 509(a)(3)(B), and
(3) certify that the organization meets the requirements of section 509(a)(3)(C).
(m) Additional information required from CO–OP insurers
An organization described in section 501(c)(29) shall include on the return required under subsection (a) the following information:
(1) The amount of the reserves required by each State in which the organization is licensed to issue qualified health plans.
(2) The amount of reserves on hand.
(n) Mandatory electronic filing
Any organization required to file a return under this section shall file such return in electronic form.
(o) Cross references
For provisions relating to statements, etc., regarding exempt status of organizations, see section 6001.
For reporting requirements as to certain liquidations, dissolutions, terminations, and contractions, see section 6043(b). For provisions relating to penalties for failure to file a return required by this section, see section 6652(c).
For provisions relating to information required in connection with certain plans of deferred compensation, see section 6058.
(Aug. 16, 1954, ch. 736,
Inflation Adjusted Items for Certain Years
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under
Editorial Notes
References in Text
The Federal Election Campaign Act of 1971, referred to in subsec. (g)(3)(F), is
Codification
Sections 1205(b)(1), 1223(a), (b), 1235(a)(1), and 1245(a), (b) of
Amendments
2019—Subsec. (j)(1).
Subsecs. (n), (o).
2018—Subsec. (b)(14).
Subsec. (b)(15)(B).
2017—Subsec. (e)(1)(B)(ii).
2015—Subsec. (f).
2010—Subsec. (b)(10)(D).
Subsec. (b)(15), (16).
Subsecs. (m), (n).
2008—Subsec. (b)(14), (15).
2006—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(3)(B).
Subsec. (h).
Subsec. (i).
Subsec. (j).
Subsec. (k).
Subsec. (l).
Subsec. (m).
2002—Subsec. (g).
"(1) such organization shall file a return—
"(A) containing the information required, and complying with the other requirements, under subsection (a)(1) for organizations exempt from taxation under section 501(a), and
"(B) containing such other information as the Secretary deems necessary to carry out the provisions of this subsection, and
"(2) subsection (a)(2)(B) (relating to discretionary exceptions) shall apply with respect to such return."
2000—Subsecs. (g), (h).
1998—Subsec. (c).
1997—Subsec. (b)(10).
Subsec. (b)(10)(C).
Subsec. (b)(11).
1996—Subsec. (b)(10) to (14).
Subsec. (e)(1)(B)(i).
Subsec. (e)(1)(B)(iii).
Subsecs. (f), (g).
1993—Subsecs. (e), (f).
1987—Subsec. (b)(9), (10).
1986—Subsec. (e).
1980—Subsecs. (c) to (e).
1976—Subsec. (a)(1), (2).
Subsec. (b).
1974—Subsec. (c).
1969—Subsec. (a).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (b)(5).
Subsec. (b)(6).
Subsec. (b)(7).
Subsec. (b)(8).
Subsec. (c).
1958—Subsec. (b)(8).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by section 3101(a) of
Effective Date of 2017 Amendment
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by section 9007(d) of
Effective Date of 2008 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 2002 Amendment
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1996 Amendments
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1987 Amendment
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1980 Amendment
Effective Date of 1976 Amendment
Amendment by section 1307(a)(4) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
Savings Provision
For provisions that amendment made by section 401(d)(6)(B)(v) of
For provisions that nothing in amendment by section 401(d)(6)(B)(v) of
Secretarial Outreach Requirements
"(1)
"(A) by mail, in the case of any organization the identity and address of which is included in the list of exempt organizations maintained by the Secretary, and
"(B) by Internet or other means of outreach, in the case of any other organization.
"(2)
§6034. Returns by certain trusts
(a) Split-interest trusts
Every trust described in section 4947(a)(2) shall furnish such information with respect to the taxable year as the Secretary may by forms or regulations require.
(b) Trusts claiming certain charitable deductions
(1) In general
Every trust not required to file a return under subsection (a) but claiming a deduction under section 642(c) for the taxable year shall furnish such information with respect to such taxable year as the Secretary may by forms or regulations prescribe, including—
(A) the amount of the deduction taken under section 642(c) within such year,
(B) the amount paid out within such year which represents amounts for which deductions under section 642(c) have been taken in prior years,
(C) the amount for which such deductions have been taken in prior years but which has not been paid out at the beginning of such year,
(D) the amount paid out of principal in the current and prior years for the purposes described in section 642(c),
(E) the total income of the trust within such year and the expenses attributable thereto, and
(F) a balance sheet showing the assets, liabilities, and net worth of the trust as of the beginning of such year.
(2) Exceptions
Paragraph (1) shall not apply to a trust for any taxable year if—
(A) all the net income for such year, determined under the applicable principles of the law of trusts, is required to be distributed currently to the beneficiaries, or
(B) the trust is described in section 4947(a)(1).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2006—
1986—Subsec. (c).
1980—
Subsec. (a).
Subsec. (b).
1976—Subsec. (a).
1969—Subsec. (a).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
§6034A. Information to beneficiaries of estates and trusts
(a) General rule
The fiduciary of any estate or trust required to file a return under section 6012(a) for any taxable year shall, on or before the date on which such return was required to be filed, furnish to each beneficiary (or nominee thereof)—
(1) who receives a distribution from such estate or trust with respect to such taxable year, or
(2) to whom any item with respect to such taxable year is allocated,
a statement containing such information required to be shown on such return as the Secretary may prescribe.
(b) Nominee reporting
Any person who holds an interest in an estate or trust as a nominee for another person—
(1) shall furnish to the estate or trust, in the manner prescribed by the Secretary, the name and address of such other person, and any other information for the taxable year as the Secretary may by form and regulations prescribe, and
(2) shall furnish in the manner prescribed by the Secretary to such other person the information provided by the estate or trust under subsection (a).
(c) Beneficiary's return must be consistent with estate or trust return or Secretary notified of inconsistency
(1) In general
A beneficiary of any estate or trust to which subsection (a) applies shall, on such beneficiary's return, treat any reported item in a manner which is consistent with the treatment of such item on the applicable entity's return.
(2) Notification of inconsistent treatment
(A) In general
In the case of any reported item, if—
(i)(I) the applicable entity has filed a return but the beneficiary's treatment on such beneficiary's return is (or may be) inconsistent with the treatment of the item on the applicable entity's return, or
(II) the applicable entity has not filed a return, and
(ii) the beneficiary files with the Secretary a statement identifying the inconsistency,
paragraph (1) shall not apply to such item.
(B) Beneficiary receiving incorrect information
A beneficiary shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a reported item if the beneficiary—
(i) demonstrates to the satisfaction of the Secretary that the treatment of the reported item on the beneficiary's return is consistent with the treatment of the item on the statement furnished under subsection (a) to the beneficiary by the applicable entity, and
(ii) elects to have this paragraph apply with respect to that item.
(3) Effect of failure to notify
In any case—
(A) described in subparagraph (A)(i)(I) of paragraph (2), and
(B) in which the beneficiary does not comply with subparagraph (A)(ii) of paragraph (2),
any adjustment required to make the treatment of the items by such beneficiary consistent with the treatment of the items on the applicable entity's return shall be treated as arising out of mathematical or clerical errors and assessed according to section 6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to any assessment referred to in the preceding sentence.
(4) Definitions
For purposes of this subsection—
(A) Reported item
The term "reported item" means any item for which information is required to be furnished under subsection (a).
(B) Applicable entity
The term "applicable entity" means the estate or trust of which the taxpayer is the beneficiary.
(5) Addition to tax for failure to comply with section
For addition to tax in the case of a beneficiary's negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of
(Added
Editorial Notes
Amendments
1997—Subsec. (c).
1986—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Effective Date of 1986 Amendment
Amendment by section 1501(c)(15) of
Effective Date
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6035. Basis information to persons acquiring property from decedent
(a) Information with respect to property acquired from decedents
(1) In general
The executor of any estate required to file a return under section 6018(a) shall furnish to the Secretary and to each person acquiring any interest in property included in the decedent's gross estate for Federal estate tax purposes a statement identifying the value of each interest in such property as reported on such return and such other information with respect to such interest as the Secretary may prescribe.
(2) Statements by beneficiaries
Each person required to file a return under section 6018(b) shall furnish to the Secretary and to each other person who holds a legal or beneficial interest in the property to which such return relates a statement identifying the information described in paragraph (1).
(3) Time for furnishing statement
(A) In general
Each statement required to be furnished under paragraph (1) or (2) shall be furnished at such time as the Secretary may prescribe, but in no case at a time later than the earlier of—
(i) the date which is 30 days after the date on which the return under section 6018 was required to be filed (including extensions, if any), or
(ii) the date which is 30 days after the date such return is filed.
(B) Adjustments
In any case in which there is an adjustment to the information required to be included on a statement filed under paragraph (1) or (2) after such statement has been filed, a supplemental statement under such paragraph shall be filed not later than the date which is 30 days after such adjustment is made.
(b) Regulations
The Secretary shall prescribe such regulations as necessary to carry out this section, including regulations relating to—
(1) the application of this section to property with regard to which no estate tax return is required to be filed, and
(2) situations in which the surviving joint tenant or other recipient may have better information than the executor regarding the basis or fair market value of the property.
(Added
Editorial Notes
Prior Provisions
A prior section 6035, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to property with respect to which an estate tax return is filed after July 31, 2015, see section 2004(d) of
§6036. Notice of qualification as executor or receiver
Every receiver, trustee in a case under
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1980—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Amendment by
§6037. Return of S corporation
(a) In general
Every S corporation shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A, the names and addresses of all persons owning stock in the corporation at any time during the taxable year, the number of shares of stock owned by each shareholder at all times during the taxable year, the amount of money and other property distributed by the corporation during the taxable year to each shareholder, the date of each such distribution, each shareholder's pro rata share of each item of the corporation for the taxable year, and such other information, for the purpose of carrying out the provisions of subchapter S of
(b) Copies to shareholders
Each S corporation required to file a return under subsection (a) for any taxable year shall (on or before the day on which the return for such taxable year was filed) furnish to each person who is a shareholder at any time during such taxable year a copy of such information shown on such return as may be required by regulations.
(c) Shareholder's return must be consistent with corporate return or Secretary notified of inconsistency
(1) In general
A shareholder of an S corporation shall, on such shareholder's return, treat a subchapter S item in a manner which is consistent with the treatment of such item on the corporate return.
(2) Notification of inconsistent treatment
(A) In general
In the case of any subchapter S item, if—
(i)(I) the corporation has filed a return but the shareholder's treatment on his return is (or may be) inconsistent with the treatment of the item on the corporate return, or
(II) the corporation has not filed a return, and
(ii) the shareholder files with the Secretary a statement identifying the inconsistency,
paragraph (1) shall not apply to such item.
(B) Shareholder receiving incorrect information
A shareholder shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a subchapter S item if the shareholder—
(i) demonstrates to the satisfaction of the Secretary that the treatment of the subchapter S item on the shareholder's return is consistent with the treatment of the item on the schedule furnished to the shareholder by the corporation, and
(ii) elects to have this paragraph apply with respect to that item.
(3) Effect of failure to notify
In any case—
(A) described in subparagraph (A)(i)(I) of paragraph (2), and
(B) in which the shareholder does not comply with subparagraph (A)(ii) of paragraph (2),
any adjustment required to make the treatment of the items by such shareholder consistent with the treatment of the items on the corporate return shall be treated as arising out of mathematical or clerical errors and assessed according to section 6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to any assessment referred to in the preceding sentence.
(4) Subchapter S item
For purposes of this subsection, the term "subchapter S item" means any item of an S corporation to the extent that regulations prescribed by the Secretary provide that, for purposes of this subtitle, such item is more appropriately determined at the corporation level than at the shareholder level.
(5) Addition to tax for failure to comply with section
For addition to tax in the case of a shareholder's negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of
(Added
Editorial Notes
Prior Provisions
A prior section 6037 was renumbered
Amendments
1996—Subsec. (c).
1984—
1982—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
Effective Date
Section applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 64(e) of
§6038. Information reporting with respect to certain foreign corporations and partnerships
(a) Requirement
(1) In general
Every United States person shall furnish, with respect to any foreign business entity which such person controls, such information as the Secretary may prescribe relating to—
(A) the name, the principal place of business, and the nature of business of such entity, and the country under whose laws such entity is incorporated (or organized in the case of a partnership);
(B) in the case of a foreign corporation, its post-1986 undistributed earnings (as defined in section 902(c)); 1
(C) a balance sheet for such entity listing assets, liabilities, and capital;
(D) transactions between such entity and—
(i) such person,
(ii) any corporation or partnership which such person controls, and
(iii) any United States person owning, at the time the transaction takes place—
(I) in the case of a foreign corporation, 10 percent or more of the value of any class of stock outstanding of such corporation, and
(II) in the case of a foreign partnership, at least a 10-percent interest in such partnership; and
(E)(i) in the case of a foreign corporation, a description of the various classes of stock outstanding, and a list showing the name and address of, and number of shares held by, each United States person who is a shareholder of record owning at any time during the annual accounting period 5 percent or more in value of any class of stock outstanding of such foreign corporation, and
(ii) information comparable to the information described in clause (i) in the case of a foreign partnership.
The Secretary may also require the furnishing of any other information which is similar or related in nature to that specified in the preceding sentence or which the Secretary determines to be appropriate to carry out the provisions of this title.
(2) Period for which information is to be furnished, etc.
The information required under paragraph (1) shall be furnished for the annual accounting period of the foreign business entity ending with or within the United States person's taxable year. The information so required shall be furnished at such time and in such manner as the Secretary shall prescribe.
(3) Limitation
No information shall be required to be furnished under this subsection with respect to any foreign business entity for any annual accounting period unless the Secretary has prescribed the furnishing of such information on or before the first day of such annual accounting period.
(4) Information required from certain shareholders in certain cases
If any foreign corporation is treated as a controlled foreign corporation for any purpose under subpart F of part III of subchapter N of
(5) Information required from 10-percent partner of controlled foreign partnership
In the case of a foreign partnership which is controlled by United States persons holding at least 10-percent interests (but not by any one United States person), the Secretary may require each United States person who holds a 10-percent interest in such partnership to furnish information relating to such partnership, including information relating to such partner's ownership interests in the partnership and allocations to such partner of partnership items.
(b) Dollar penalty for failure to furnish information
(1) In general
If any person fails to furnish, within the time prescribed under paragraph (2) of subsection (a), any information with respect to any foreign business entity required under paragraph (1) of subsection (a), such person shall pay a penalty of $10,000 for each annual accounting period with respect to which such failure exists.
(2) Increase in penalty where failure continues after notification
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the United States person, such person shall pay a penalty (in addition to the amount required under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues with respect to any annual accounting period after the expiration of such 90-day period. The increase in any penalty under this paragraph shall not exceed $50,000.
(c) Penalty of reducing foreign tax credit
(1) In general
If a United States person fails to furnish, within the time prescribed under paragraph (2) of subsection (a), any information with respect to any foreign business entity required under paragraph (1) of subsection (a), then—
(A) in applying section 901 (relating to taxes of foreign countries and possessions of the United States) to such United States person for the taxable year, the amount of taxes (other than taxes reduced under subparagraph (B)) paid or deemed paid (other than those deemed paid under section 904(c)) to any foreign country or possession of the United States for the taxable year shall be reduced by 10 percent, and
(B) in the case of a foreign business entity which is a foreign corporation, in applying section 960 to any such United States person which is a corporation (or to any person who acquires from any other person any portion of the interest of such other person in any such foreign corporation, but only to the extent of such portion) for any taxable year, the amount of taxes paid or deemed paid by each foreign corporation with respect to which such person is required to furnish information during the annual accounting period or periods with respect to which such information is required under paragraph (2) of subsection (a) shall be reduced by 10 percent.
If such failure continues 90 days or more after notice of such failure by the Secretary to the United States person, then the amount of the reduction under this paragraph shall be 10 percent plus an additional 5 percent for each 3-month period, or fraction thereof, during which such failure to furnish information continues after the expiration of such 90-day period.
(2) Limitation
The amount of the reduction under paragraph (1) for each failure to furnish information with respect to a foreign business entity required under subsection (a)(1) shall not exceed whichever of the following amounts is the greater:
(A) $10,000, or
(B) the income of the foreign business entity for its annual accounting period with respect to which the failure occurs.
(3) Coordination with subsection (b)
The amount of the reduction which (but for this paragraph) would be made under paragraph (1) with respect to any annual accounting period shall be reduced by the amount of the penalty imposed by subsection (b) with respect to such period.
(4) Special rules
(A) No taxes shall be reduced under this subsection more than once for the same failure.
(B) For purposes of this subsection and subsection (b), the time prescribed under paragraph (2) of subsection (a) to furnish information (and the beginning of the 90-day period after notice by the Secretary) shall be treated as being not earlier than the last day on which (as shown to the satisfaction of the Secretary) reasonable cause existed for failure to furnish such information.
(d) Two or more persons required to furnish information with respect to same foreign corporation
Where, but for this subsection, two or more United States persons would be required to furnish information under subsection (a) with respect to the same foreign business entity for the same period, the Secretary may by regulations provide that such information shall be required only from one person. To the extent practicable, the determination of which person shall furnish the information shall be made on the basis of actual ownership of stock.
(e) Definitions
For purposes of this section—
(1) Foreign business entity
The term "foreign business entity" means a foreign corporation and a foreign partnership.
(2) Control of corporation
A person is in control of a corporation if such person owns stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote, or more than 50 percent of the total value of shares of all classes of stock, of a corporation. If a person is in control (within the meaning of the preceding sentence) of a corporation which in turn owns more than 50 percent of the total combined voting power of all classes of stock entitled to vote of another corporation, or owns more than 50 percent of the total value of the shares of all classes of stock of another corporation, then such person shall be treated as in control of such other corporation. For purposes of this paragraph, the rules prescribed by section 318(a) for determining ownership of stock shall apply; except that—
(A) subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person, and
(B) in applying subparagraph (C) of section 318(a)(2), the phrase "10 percent" shall be substituted for the phrase "50 percent" used in subparagraph (C).
(3) Partnership-related definitions
(A) Control
A person is in control of a partnership if such person owns directly or indirectly more than a 50 percent interest in such partnership.
(B) 50-percent interest
For purposes of subparagraph (A), a 50-percent interest in a partnership is—
(i) an interest equal to 50 percent of the capital interest, or 50 percent of the profits interest, in such partnership, or
(ii) to the extent provided in regulations, an interest to which 50 percent of the deductions or losses of such partnership are allocated.
For purposes of the preceding sentence, rules similar to the rules of section 267(c) (other than paragraph (3)) shall apply.
(C) 10-percent interest
A 10-percent interest in a partnership is an interest which would be described in subparagraph (B) if "10 percent" were substituted for "50 percent" each place it appears.
(4) Annual accounting period
The annual accounting period of a foreign business entity is the annual period on the basis of which such foreign business entity regularly computes its income in keeping its books. In the case of a specified foreign business entity (as defined in section 898), the taxable year of such foreign business entity shall be treated as its annual accounting period.
(f) Cross references
(1) For provisions relating to penalties for violations of this section, see section 7203.
(2) For definition of the term "United States person", see section 7701(a)(30).
(Added
Editorial Notes
References in Text
Section 902, referred to in subsec. (a)(1)(B), was repealed by
Prior Provisions
A prior section 6038 was renumbered
Amendments
2017—Subsec. (c)(1)(B).
Subsec. (c)(4)(C).
1998—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (e)(4).
1997—
Subsec. (a).
Subsec. (a)(1).
Subsec. (a)(2), (3).
Subsec. (a)(5).
Subsec. (b).
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (d).
Subsec. (e).
1996—Subsec. (a)(1)(E), (F).
Subsec. (e).
Subsec. (e)(2).
Subsec. (f).
1990—Subsec. (e)(2).
1989—Subsec. (a)(1).
Subsec. (a)(4).
1986—Subsec. (a)(1)(B).
Subsec. (a)(1)(F).
Subsec. (c)(4)(C).
1982—Subsec. (a)(1).
Subsec. (b).
Subsec. (c).
Subsecs. (d), (e).
1976—Subsecs. (a), (b).
Subsec. (b)(1).
Subsec. (c).
1964—Subsec. (d)(1).
1962—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1989 Amendment
Effective Date of 1986 Amendment
Amendment by section 1202(c) of
Amendment by section 1245(b)(5) of
Effective Date of 1982 Amendment
Effective Date of 1964 Amendment
Amendment by
Effective Date of 1962 Amendment
Effective Date
1 See References in Text note below.
§6038A. Information with respect to certain foreign-owned corporations
(a) Requirement
If, at any time during a taxable year, a corporation (hereinafter in this section referred to as the "reporting corporation")—
(1) is a domestic corporation, and
(2) is 25-percent foreign-owned,
such corporation shall furnish, at such time and in such manner as the Secretary shall by regulations prescribe, the information described in subsection (b) and such corporation shall maintain (in the location, in the manner, and to the extent prescribed in regulations) such records as may be appropriate to determine the correct treatment of transactions with related parties as the Secretary shall by regulations prescribe (or shall cause another person to so maintain such records).
(b) Required information
(1) In general
For purposes of subsection (a), the information described in this subsection is such information as the Secretary prescribes by regulations relating to—
(A) the name, principal place of business, nature of business, and country or countries in which organized or resident, of each person which—
(i) is a related party to the reporting corporation, and
(ii) had any transaction with the reporting corporation during its taxable year,
(B) the manner in which the reporting corporation is related to each person referred to in subparagraph (A), and
(C) transactions between the reporting corporation and each foreign person which is a related party to the reporting corporation.
(2) Additional information regarding base erosion payments
For purposes of subsection (a) and section 6038C, if the reporting corporation or the foreign corporation to whom section 6038C applies is an applicable taxpayer, the information described in this subsection shall include—
(A) such information as the Secretary determines necessary to determine the base erosion minimum tax amount, base erosion payments, and base erosion tax benefits of the taxpayer for purposes of section 59A for the taxable year, and
(B) such other information as the Secretary determines necessary to carry out such section.
For purposes of this paragraph, any term used in this paragraph which is also used in section 59A shall have the same meaning as when used in such section.
(c) Definitions
For purposes of this section—
(1) 25-percent foreign-owned
A corporation is 25-percent foreign-owned if at least 25 percent of—
(A) the total voting power of all classes of stock of such corporation entitled to vote, or
(B) the total value of all classes of stock of such corporation,
is owned at any time during the taxable year by 1 foreign person (hereinafter in this section referred to as a "25-percent foreign shareholder").
(2) Related party
The term "related party" means—
(A) any 25-percent foreign shareholder of the reporting corporation,
(B) any person who is related (within the meaning of section 267(b) or 707(b)(1)) to the reporting corporation or to a 25-percent foreign shareholder of the reporting corporation, and
(C) any other person who is related (within the meaning of section 482) to the reporting corporation.
(3) Foreign person
The term "foreign person" means any person who is not a United States person. For purposes of the preceding sentence, the term "United States person" has the meaning given to such term by section 7701(a)(30), except that any individual who is a citizen of any possession of the United States (but not otherwise a citizen of the United States) and who is not a resident of the United States shall not be treated as a United States person.
(4) Records
The term "records" includes any books, papers, or other data.
(5) Section 318 to apply
Section 318 shall apply for purposes of paragraphs (1) and (2), except that—
(A) "10 percent" shall be substituted for "50 percent" in section 318(a)(2)(C), and
(B) subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person.
(d) Penalty for failure to furnish information or maintain records
(1) In general
If a reporting corporation—
(A) fails to furnish (within the time prescribed by regulations) any information described in subsection (b), or
(B) fails to maintain (or cause another to maintain) records as required by subsection (a),
such corporation shall pay a penalty of $25,000 for each taxable year with respect to which such failure occurs.
(2) Increase in penalty where failure continues after notification
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the reporting corporation, such corporation shall pay a penalty (in addition to the amount required under paragraph (1)) of $25,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period.
(3) Reasonable cause
For purposes of this subsection, the time prescribed by regulations to furnish information or maintain records (and the beginning of the 90-day period after notice by the Secretary) shall be treated as not earlier than the last day on which (as shown to the satisfaction of the Secretary) reasonable cause existed for failure to furnish the information or maintain the records.
(e) Enforcement of requests for certain records
(1) Agreement to treat corporation as agent
The rules of paragraph (3) shall apply to any transaction between the reporting corporation and any related party who is a foreign person unless such related party agrees (in such manner and at such time as the Secretary shall prescribe) to authorize the reporting corporation to act as such related party's limited agent solely for purposes of applying sections 7602, 7603, and 7604 with respect to any request by the Secretary to examine records or produce testimony related to any such transaction or with respect to any summons by the Secretary for such records or testimony. The appearance of persons or production of records by reason of the reporting corporation being such an agent shall not subject such persons or records to legal process for any purpose other than determining the correct treatment under this title of any transaction between the reporting corporation and such related party.
(2) Rules where information not furnished
If—
(A) for purposes of determining the correct treatment under this title of any transaction between the reporting corporation and a related party who is a foreign person, the Secretary issues a summons to such corporation to produce (either directly or as agent for such related party) any records or testimony,
(B) such summons is not quashed in a proceeding begun under paragraph (4) and is not determined to be invalid in a proceeding begun under section 7604(b) to enforce such summons, and
(C) the reporting corporation does not substantially comply in a timely manner with such summons and the Secretary has sent by certified or registered mail a notice to such reporting corporation that such reporting corporation has not so substantially complied,
the Secretary may apply the rules of paragraph (3) with respect to such transaction (whether or not the Secretary begins a proceeding to enforce such summons). If the reporting corporation fails to maintain (or cause another to maintain) records as required by subsection (a), and by reason of that failure, the summons is quashed in a proceeding described in subparagraph (B) or the reporting corporation is not able to provide the records requested in the summons, the Secretary may apply the rules of paragraph (3) with respect to any transaction to which the records relate.
(3) Applicable rules in cases of noncompliance
If the rules of this paragraph apply to any transaction—
(A) the amount of the deduction allowed under subtitle A for any amount paid or incurred by the reporting corporation to the related party in connection with such transaction, and
(B) the cost to the reporting corporation of any property acquired in such transaction from the related party (or transferred by such corporation in such transaction to the related party),
shall be the amount determined by the Secretary in the Secretary's sole discretion from the Secretary's own knowledge or from such information as the Secretary may obtain through testimony or otherwise.
(4) Judicial proceedings
(A) Proceedings to quash
Notwithstanding any law or rule of law, any reporting corporation to which the Secretary issues a summons referred to in paragraph (2)(A) shall have the right to begin a proceeding to quash such summons not later than the 90th day after such summons was issued. In any such proceeding, the Secretary may seek to compel compliance with such summons.
(B) Review of secretarial determination of noncompliance
Notwithstanding any law or rule of law, any reporting corporation which has been notified by the Secretary that the Secretary has determined that such corporation has not substantially complied with a summons referred to in paragraph (2) shall have the right to begin a proceeding to review such determination not later than the 90th day after the day on which the notice referred to in paragraph (2)(C) was mailed. If such a proceeding is not begun on or before such 90th day, such determination by the Secretary shall be binding and shall not be reviewed by any court.
(C) Jurisdiction
The United States district court for the district in which the person (to whom the summons is issued) resides or is found shall have jurisdiction to hear any proceeding brought under subparagraph (A) or (B). Any order or other determination in such a proceeding shall be treated as a final order which may be appealed.
(D) Suspension of statute of limitations
If the reporting corporation brings an action under subparagraph (A) or (B), the running of any period of limitations under section 6501 (relating to assessment and collection of tax) or under section 6531 (relating to criminal prosecutions) with respect to any affected taxable year shall be suspended for the period during which such proceeding, and appeals therein, are pending. In no event shall any such period expire before the 90th day after the day on which there is a final determination in such proceeding. For purposes of this subparagraph, the term "affected taxable year" means any taxable year if the determination of the amount of tax imposed for such taxable year is affected by the treatment of the transaction to which the summons relates.
(f) Cross reference
For provisions relating to criminal penalties for violation of this section, see section 7203.
(Added
Editorial Notes
Amendments
2017—Subsec. (b).
Subsec. (d)(1), (2).
1996—Subsec. (b)(2) to (4).
Subsec. (e)(4)(D).
1990—Subsec. (a)(1).
Subsec. (c)(3) to (6).
1989—Subsec. (a).
Subsec. (a)(2).
Subsec. (c).
Subsec. (d).
Subsecs. (e), (f).
1986—Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (c)(2).
"(A) 'at least 50 percent' shall be substituted—
"(i) for 'at least 80 percent' each place it appears in section 1563(a)(1), and
"(ii) for 'more than 50 percent' each place it appears in section 1563(a)(2)(B), and
"(B) the determination shall be made without regard to subsections (a)(4), (b)(2)(C), and (e)(3)(C) of section 1563."
1984—Subsec. (c)(1).
1983—Subsec. (c)(2)(B).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by section 1702(c)(5) of
Effective Date of 1990 Amendment
"(1) any requirement to furnish information under section 6038C(a) of the Internal Revenue Code of 1986 (as added by this section) if the time for furnishing such information under such section is after the date of the enactment of this Act [Nov. 5, 1990],
"(2) any requirement under such section 6038C(a) to maintain records which were in existence on or after March 20, 1990,
"(3) any requirement to authorize a corporation to act as a limited agent under section 6038C(d)(1) of such Code (as so added) if the time for authorizing such action is after the date of the enactment of this Act, and
"(4) any summons issued after such date of enactment,
without regard to when the taxable year (to which the information, records, authorization, or summons relates) began."
Effective Date of 1989 Amendment
Effective Date of 1986 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date
Applicability of 1989 Amendment
"(a)
"(1) any requirement to furnish information under section 6038A(a) of the Internal Revenue Code of 1986 (as amended by such section 7403) if the time for furnishing such information under such section is after the date of the enactment of this Act [Nov. 5, 1990],
"(2) any requirement under such section 6038A(a) to maintain records which were in existence on or after March 20, 1990,
"(3) any requirement to authorize a corporation to act as a limited agent under section 6038A(e)(1) of such Code (as so amended) if the time for authorizing such action is after the date of the enactment of this Act, and
"(4) any summons issued after such date of enactment,
without regard to when the taxable year (to which the information, records, authorization, or summons relates) began. Such amendments shall also apply in any case to which they would apply without regard to this section.
"(b)
§6038B. Notice of certain transfers to foreign persons
(a) In general
Each United States person who—
(1) transfers property to—
(A) a foreign corporation in an exchange described in section 332, 351, 354, 355, 356, or 361, or
(B) a foreign partnership in a contribution described in section 721 or in any other contribution described in regulations prescribed by the Secretary, or
(2) makes a distribution described in section 336 to a person who is not a United States person,
shall furnish to the Secretary, at such time and in such manner as the Secretary shall by regulations prescribe, such information with respect to such exchange or distribution as the Secretary may require in such regulations.
(b) Exceptions for certain transfers to foreign partnerships; special rule
(1) Exceptions
Subsection (a)(1)(B) shall apply to a transfer by a United States person to a foreign partnership only if—
(A) the United States person holds (immediately after the transfer) directly or indirectly at least a 10-percent interest (as defined in section 6046A(d)) in the partnership, or
(B) the value of the property transferred (when added to the value of the property transferred by such person or any related person to such partnership or a related partnership during the 12-month period ending on the date of the transfer) exceeds $100,000.
For purposes of the preceding sentence, the value of any transferred property is its fair market value at the time of its transfer.
(2) Special rule
If by reason of an adjustment under section 482 or otherwise, a contribution described in subsection (a)(1) is deemed to have been made, such contribution shall be treated for purposes of this section as having been made not earlier than the date specified by the Secretary.
(c) Penalty for failure to furnish information
(1) In general
If any United States person fails to furnish the information described in subsection (a) at the time and in the manner required by regulations, such person shall pay a penalty equal to 10 percent of the fair market value of the property at the time of the exchange (and, in the case of a contribution described in subsection (a)(1)(B), such person shall recognize gain as if the contributed property had been sold for such value at the time of such contribution).
(2) Reasonable cause exception
Paragraph (1) shall not apply to any failure if the United States person shows such failure is due to reasonable cause and not to willful neglect.
(3) Limit on penalty
The penalty under paragraph (1) with respect to any exchange shall not exceed $100,000 unless the failure with respect to such exchange was due to intentional disregard.
(Added
Editorial Notes
Amendments
2005—Subsec. (a)(1)(B).
1998—Subsec. (c).
1997—Subsec. (a)(1).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Effective Date
Section applicable to transfers or exchanges after Dec. 31, 1984, in taxable years ending after such date, with special rules for certain transfers and ruling requests before Mar. 1, 1984, see section 131(g) of
Election of Retroactive Effect
§6038C. Information with respect to foreign corporations engaged in U.S. business
(a) Requirement
If a foreign corporation (hereinafter in this section referred to as the "reporting corporation") is engaged in a trade or business within the United States at any time during a taxable year—
(1) such corporation shall furnish (at such time and in such manner as the Secretary shall by regulations prescribe) the information described in subsection (b), and
(2) such corporation shall maintain (at the location, in the manner, and to the extent prescribed in regulations) such records as may be appropriate to determine the liability of such corporation for tax under this title as the Secretary shall by regulations prescribe (or shall cause another person to so maintain such records).
(b) Required information
For purposes of subsection (a), the information described in this subsection is—
(1) the information described in section 6038A(b), and
(2) such other information as the Secretary may prescribe by regulations relating to any item not directly connected with a transaction for which information is required under paragraph (1).
(c) Penalty for failure to furnish information or maintain records
The provisions of subsection (d) of section 6038A shall apply to—
(1) any failure to furnish (within the time prescribed by regulations) any information described in subsection (b), and
(2) any failure to maintain (or cause another to maintain) records as required by subsection (a),
in the same manner as if such failure were a failure to comply with the provisions of section 6038A.
(d) Enforcement of requests for certain records
(1) Agreement to treat corporation as agent
The rules of paragraph (3) shall apply to any transaction between the reporting corporation and any related party who is a foreign person unless such related party agrees (in such manner and at such time as the Secretary shall prescribe) to authorize the reporting corporation to act as such related party's limited agent solely for purposes of applying sections 7602, 7603, and 7604 with respect to any request by the Secretary to examine records or produce testimony related to any such transaction or with respect to any summons by the Secretary for such records or testimony. The appearance of persons or production of records by reason of the reporting corporation being such an agent shall not subject such persons or records to legal process for any purpose other than determining the correct treatment under this title of any transaction between the reporting corporation and such related party.
(2) Rules where information not furnished
If—
(A) for purposes of determining the amount of the reporting corporation's liability for tax under this title, the Secretary issues a summons to such corporation to produce (either directly or as an agent for a related party who is a foreign person) any records or testimony,
(B) such summons is not quashed in a proceeding begun under paragraph (4) of section 6038A(e) (as made applicable by paragraph (4) of this subsection) and is not determined to be invalid in a proceeding begun under section 7604(b) to enforce such summons, and
(C) the reporting corporation does not substantially comply in a timely manner with such summons and the Secretary has sent by certified or registered mail a notice to such reporting corporation that such reporting corporation has not so substantially complied,
the Secretary may apply the rules of paragraph (3) with respect to any transaction or item to which such summons relates (whether or not the Secretary begins a proceeding to enforce such summons). If the reporting corporation fails to maintain (or cause another to maintain) records as required by subsection (a), and by reason of that failure, the summons is quashed in a proceeding described in subparagraph (B) or the reporting corporation is not able to provide the records requested in the summons, the Secretary may apply the rules of paragraph (3) with respect to any transaction or item to which the records relate.
(3) Applicable rules
If the rules of this paragraph apply to any transaction or item, the treatment of such transaction (or the amount and treatment of any such item) shall be determined by the Secretary in the Secretary's sole discretion from the Secretary's own knowledge or from such information as the Secretary may obtain through testimony or otherwise.
(4) Judicial proceedings
The provisions of section 6038A(e)(4) shall apply with respect to any summons referred to in paragraph (2)(A); except that subparagraph (D) of such section shall be applied by substituting "transaction or item" for "transaction".
(e) Definitions
For purposes of this section, the terms "related party", "foreign person", and "records" have the respective meanings given to such terms by section 6038A(c).
(Added
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to (1) any requirement to furnish information under this section if the time for furnishing such information is after Nov. 5, 1990, (2) any requirement under subsec. (a) of this section to maintain records which were in existence on or after Mar. 20, 1990, (3) any requirement to authorize a corporation to act as a limited agent under subsec. (d)(1) of this section if the time for authorizing such action is after Nov. 5, 1990, and (4) any summons issued after Nov. 5, 1990, without regard to when the taxable year (to which the information, records, authorization, or summons relates) began, see section 11315(c) of
§6038D. Information with respect to foreign financial assets
(a) In general
Any individual who, during any taxable year, holds any interest in a specified foreign financial asset shall attach to such person's return of tax imposed by subtitle A for such taxable year the information described in subsection (c) with respect to each such asset if the aggregate value of all such assets exceeds $50,000 (or such higher dollar amount as the Secretary may prescribe).
(b) Specified foreign financial assets
For purposes of this section, the term "specified foreign financial asset" means—
(1) any financial account (as defined in section 1471(d)(2)) maintained by a foreign financial institution (as defined in section 1471(d)(4)), and
(2) any of the following assets which are not held in an account maintained by a financial institution (as defined in section 1471(d)(5))—
(A) any stock or security issued by a person other than a United States person,
(B) any financial instrument or contract held for investment that has an issuer or counterparty which is other than a United States person, and
(C) any interest in a foreign entity (as defined in section 1473).
(c) Required information
The information described in this subsection with respect to any asset is:
(1) In the case of any account, the name and address of the financial institution in which such account is maintained and the number of such account.
(2) In the case of any stock or security, the name and address of the issuer and such information as is necessary to identify the class or issue of which such stock or security is a part.
(3) In the case of any other instrument, contract, or interest—
(A) such information as is necessary to identify such instrument, contract, or interest, and
(B) the names and addresses of all issuers and counterparties with respect to such instrument, contract, or interest.
(4) The maximum value of the asset during the taxable year.
(d) Penalty for failure to disclose
(1) In general
If any individual fails to furnish the information described in subsection (c) with respect to any taxable year at the time and in the manner described in subsection (a), such person shall pay a penalty of $10,000.
(2) Increase in penalty where failure continues after notification
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the individual, such individual shall pay a penalty (in addition to the penalties under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. The penalty imposed under this paragraph with respect to any failure shall not exceed $50,000.
(e) Presumption that value of specified foreign financial assets exceeds dollar threshold
If—
(1) the Secretary determines that an individual has an interest in one or more specified foreign financial assets, and
(2) such individual does not provide sufficient information to demonstrate the aggregate value of such assets,
then the aggregate value of such assets shall be treated as being in excess of $50,000 (or such higher dollar amount as the Secretary prescribes for purposes of subsection (a)) for purposes of assessing the penalties imposed under this section.
(f) Application to certain entities
To the extent provided by the Secretary in regulations or other guidance, the provisions of this section shall apply to any domestic entity which is formed or availed of for purposes of holding, directly or indirectly, specified foreign financial assets, in the same manner as if such entity were an individual.
(g) Reasonable cause exception
No penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect. The fact that a foreign jurisdiction would impose a civil or criminal penalty on the taxpayer (or any other person) for disclosing the required information is not reasonable cause.
(h) Regulations
The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance which provide appropriate exceptions from the application of this section in the case of—
(1) classes of assets identified by the Secretary, including any assets with respect to which the Secretary determines that disclosure under this section would be duplicative of other disclosures,
(2) nonresident aliens, and
(3) bona fide residents of any possession of the United States.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
§6038E. Information with respect to assignment of lower rates or refunds by foreign producers of beer, wine, and distilled spirits
Any foreign producer that elects to make an assignment described in section 5001(c), 5041(c), or 5051(a) shall provide such information, at such time and in such manner, as the Secretary may prescribe in order to make such assignment, including information about the controlled group structure of such foreign producer.
(Added
Effective Date
§6039. Returns required in connection with certain options
(a) Requirement of reporting
Every corporation—
(1) which in any calendar year transfers to any person a share of stock pursuant to such person's exercise of an incentive stock option, or
(2) which in any calendar year records (or has by its agent recorded) a transfer of the legal title of a share of stock acquired by the transferor pursuant to his exercise of an option described in section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock),
shall, for such calendar year, make a return at such time and in such manner, and setting forth such information, as the Secretary may by regulations prescribe.
(b) Statements to be furnished to persons with respect to whom information is reported
Every corporation making a return under subsection (a) shall furnish to each person whose name is set forth in such return a written statement setting forth such information as the Secretary may by regulations prescribe. The written statement required under the preceding sentence shall be furnished to such person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.
(c) Special rules
For purposes of this section—
(1) Treatment by employer to be determinative
Any option which the corporation treats as an incentive stock option or an option granted under an employee stock purchase plan shall be deemed to be such an option.
(2) Subsection (a)(2) applies only to first transfer described therein
A statement is required by reason of a transfer described in subsection (a)(2) of a share only with respect to the first transfer of such share by the person who exercised the option.
(3) Identification of stock
Any corporation which transfers any share of stock pursuant to the exercise of any option described in subsection (a)(2) shall identify such stock in a manner adequate to carry out the purposes of this section.
(d) Cross references
For definition of—
(1) the term "incentive stock option", see section 422(b), and
(2) the term "employee stock purchase plan", see section 423(b).
(Added
Editorial Notes
Prior Provisions
A prior section 6039 was renumbered
Amendments
2018—Subsec. (d)(2).
2006—
Subsec. (a).
Subsecs. (b) to (d).
1998—Subsec. (a)(1).
1990—Subsec. (a)(1), (2).
"(1) which in any calendar year transfers a share of stock to any person pursuant to such person's exercise of a qualified stock option, an incentive stock option, or a restricted stock option, or
"(2) which in any calendar year records (or has by its agent recorded) a transfer of the legal title of a share of stock—
"(A) acquired by the transfer or pursuant to his exercise of an option described in section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock), or
"(B) acquired by the transferor pursuant to his exercise of a restricted stock option described in section 424(c)(1) (relating to options under which option price is between 85 percent and 95 percent of value of stock),".
Subsec. (b)(1).
Subsec. (c).
1981—Subsec. (a)(1).
Subsec. (b)(1).
Subsec. (c)(4).
1979—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
1976—Subsecs. (a), (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section applicable to stock transferred pursuant to options exercised on or after Jan. 1, 1964, See section 221(e) of
Savings Provision
For provisions that nothing in amendment by
[§6039A. Repealed. Pub. L. 96–223, title IV, §401(a), Apr. 2, 1980, 94 Stat. 299 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal and Revival of Prior Law
Repeal applicable in respect of decedents dying after Dec. 31, 1976, and, except for certain elections, this title to be applied and administered as if this section had not been enacted, see section 401(b), (e) of
[§6039B. Repealed. Pub. L. 99–514, title XIII, §1303(b)(5), Oct. 22, 1986, 100 Stat. 2658 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Oct. 22, 1986, see section 1311(f) of
§6039C. Returns with respect to foreign persons holding direct investments in United States real property interests
(a) General rule
To the extent provided in regulations, any foreign person holding direct investments in United States real property interests for the calendar year shall make a return setting forth—
(1) the name and address of such person,
(2) a description of all United States real property interests held by such person at any time during the calendar year, and
(3) such other information as the Secretary may by regulations prescribe.
(b) Definition of foreign persons holding direct investments in United States real property interests
For purposes of this section, a foreign person shall be treated as holding direct investments in United States real property interests during any calendar year if—
(1) such person did not engage in a trade or business in the United States at any time during such calendar year, and
(2) the fair market value of the United States real property interests held directly by such person at any time during such year equals or exceeds $50,000.
(c) Definitions and special rules
For purposes of this section—
(1) United States real property interest
The term "United States real property interest" has the meaning given to such term by section 897(c).
(2) Foreign person
The term "foreign person" means any person who is not a United States person.
(3) Attribution of ownership
For purposes of subsection (b)(2)—
(A) Interests held by partnerships, etc.
United States real property interests held by a partnership, trust, or estate shall be treated as owned proportionately by its partners or beneficiaries.
(B) Interests held by family members
United States real property interests held by the spouse or any minor child of an individual shall be treated as owned by such individual.
(4) Time and manner of filing return
All returns required to be made under this section shall be made at such time and in such manner as the Secretary shall by regulations prescribe.
(d) Special rule for United States interest and Virgin Islands interest
A nonresident alien individual or foreign corporation subject to tax under section 897(a) (and any person required to withhold tax under section 1445) shall pay any tax and file any return required by this title—
(1) to the United States, in the case of any interest in real property located in the United States and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the United States) described in section 897(c)(1)(A)(ii), and
(2) to the Virgin Islands, in the case of any interest in real property located in the Virgin Islands and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the Virgin Islands) described in section 897(c)(1)(A)(ii).
(Added
Editorial Notes
Amendments
1986—Subsec. (d).
1984—
1981—Subsec. (b)(4)(C).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section applicable to 1980 and subsequent calendar years, with 1980 being treated as beginning on June 19, 1980, and ending on Dec. 31, 1980, see section 1125(b) of
§6039D. Returns and records with respect to certain fringe benefit plans
(a) In general
Every employer maintaining a specified fringe benefit plan during any year for any portion of which the applicable exclusion applies, shall file a return (at such time and in such manner as the Secretary shall by regulations prescribe) with respect to such plan showing for such year—
(1) the number of employees of the employer,
(2) the number of employees of the employer eligible to participate under the plan,
(3) the number of employees participating under the plan,
(4) the total cost of the plan during the year,
(5) the name, address, and taxpayer identification number of the employer and the type of business in which the employer is engaged, and
(6) the number of highly compensated employees among the employees described in paragraphs (1), (2), and (3).
(b) Recordkeeping requirement
Each employer maintaining a specified fringe benefit plan during any year shall keep such records as may be necessary for purposes of determining whether the requirements of the applicable exclusion are met.
(c) Additional information when required by the Secretary
Any employer—
(1) who maintains a specified fringe benefit plan during any year for which a return is required under subsection (a), and
(2) who is required by the Secretary to file an additional return for such year,
shall file such additional return. Such additional return shall be filed at such time and in such manner as the Secretary shall prescribe and shall contain such information as the Secretary shall prescribe. The Secretary may require returns under this subsection only from a representative group of employers.
(d) Definitions and special rules
For purposes of this section—
(1) Specified fringe benefit plan
The term "specified fringe benefit plan" means any plan under section 79, 105, 106, 125, 127, 129, or 137.
(2) Applicable exclusion
The term "applicable exclusion" means, with respect to any specified fringe benefit plan, the section specified under paragraph (1) under which benefits under such plan are excludable from gross income.
(3) Special rule for multiemployer plans
In the case of a multiemployer plan, the plan shall be required to provide any information required by this section which the Secretary determines, on the basis of the agreement between the plan and employer, is held by the plan (and not the employer).
(Added
Editorial Notes
Codification
Another section 6039D, added
Amendments
2014—Subsec. (a).
Subsec. (d)(1).
1997—Subsec. (d)(1).
1990—Subsec. (d)(3).
1988—Subsec. (c).
Subsec. (d).
Subsec. (d)(3).
1986—Subsec. (a)(6).
Subsec. (c).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by section 1011B(a)(24) of
Effective Date of 1986 Amendment
Amendment by section 1151(h) of
Amendment by section 1879(d)(1) of
Effective Date
Section effective Jan. 1, 1985, see section 1(g)(2) of
Nonenforcement of Amendment Made by Section 1151 of Pub. L. 99–514 for Fiscal Year 1990
No monies appropriated by
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6039E. Information concerning resident status
(a) General rule
Notwithstanding any other provision of law, any individual who—
(1) applies for a United States passport (or a renewal thereof), or
(2) applies to be lawfully accorded the privilege of residing permanently in the United States as an immigrant in accordance with the immigration laws,
shall include with any such application a statement which includes the information described in subsection (b).
(b) Information to be provided
Information required under subsection (a) shall include—
(1) the taxpayer's TIN (if any),
(2) in the case of a passport applicant, any foreign country in which such individual is residing,
(3) in the case of an individual seeking permanent residence, information with respect to whether such individual is required to file a return of the tax imposed by
(4) such other information as the Secretary may prescribe.
(c) Penalty
Any individual failing to provide a statement required under subsection (a) shall be subject to a penalty equal to $500 for each such failure, unless it is shown that such failure is due to reasonable cause and not to willful neglect.
(d) Information to be provided to Secretary
Notwithstanding any other provision of law, any agency of the United States which collects (or is required to collect) the statement under subsection (a) shall—
(1) provide any such statement to the Secretary, and
(2) provide to the Secretary the name (and any other identifying information) of any individual refusing to comply with the provisions of subsection (a).
Nothing in the preceding sentence shall be construed to require the disclosure of information which is subject to section 245A of the Immigration and Nationality Act (as in effect on the date of the enactment of this sentence).
(e) Exemption
The Secretary may by regulations exempt any class of individuals from the requirements of this section if he determines that applying this section to such individuals is not necessary to carry out the purposes of this section.
(Added
Editorial Notes
References in Text
Section 245A of the Immigration and Nationality Act, referred to in subsec. (d), is classified to
The date of the enactment of this sentence, referred to in subsec. (d), is the date of enactment of
Amendments
1988—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date
§6039F. Notice of large gifts received from foreign persons
(a) In general
If the value of the aggregate foreign gifts received by a United States person (other than an organization described in section 501(c) and exempt from tax under section 501(a)) during any taxable year exceeds $10,000, such United States person shall furnish (at such time and in such manner as the Secretary shall prescribe) such information as the Secretary may prescribe regarding each foreign gift received during such year.
(b) Foreign gift
For purposes of this section, the term "foreign gift" means any amount received from a person other than a United States person which the recipient treats as a gift or bequest. Such term shall not include any qualified transfer (within the meaning of section 2503(e)(2)) or any distribution properly disclosed in a return under section 6048(c).
(c) Penalty for failure to file information
(1) In general
If a United States person fails to furnish the information required by subsection (a) with respect to any foreign gift within the time prescribed therefor (including extensions)—
(A) the tax consequences of the receipt of such gift shall be determined by the Secretary, and
(B) such United States person shall pay (upon notice and demand by the Secretary and in the same manner as tax) an amount equal to 5 percent of the amount of such foreign gift for each month for which the failure continues (not to exceed 25 percent of such amount in the aggregate).
(2) Reasonable cause exception
Paragraph (1) shall not apply to any failure to report a foreign gift if the United States person shows that the failure is due to reasonable cause and not due to willful neglect.
(d) Cost-of-living adjustment
In the case of any taxable year beginning after December 31, 1996, the $10,000 amount under subsection (a) shall be increased by an amount equal to the product of such amount and the cost-of-living adjustment for such taxable year under section 1(f)(3), except that subparagraph (A)(ii) thereof shall be applied by substituting "1995" for "2016".
(e) Regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.
(Added
Inflation Adjusted Items for Certain Years
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under
Editorial Notes
Codification
Another section 6039F was renumbered
Amendments
2017—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date
§6039G. Information on individuals losing United States citizenship
(a) In general
Notwithstanding any other provision of law, any individual to whom section 877(b) or 877A applies for any taxable year shall provide a statement for such taxable year which includes the information described in subsection (b).
(b) Information to be provided
Information required under subsection (a) shall include—
(1) the taxpayer's TIN,
(2) the mailing address of such individual's principal foreign residence,
(3) the foreign country in which such individual is residing,
(4) the foreign country of which such individual is a citizen,
(5) information detailing the income, assets, and liabilities of such individual,
(6) the number of days during any portion of which that the individual was physically present in the United States during the taxable year, and
(7) such other information as the Secretary may prescribe.
(c) Penalty
If—
(1) an individual is required to file a statement under subsection (a) for any taxable year, and
(2) fails to file such a statement with the Secretary on or before the date such statement is required to be filed or fails to include all the information required to be shown on the statement or includes incorrect information,
such individual shall pay a penalty of $10,000 unless it is shown that such failure is due to reasonable cause and not to willful neglect.
(d) Information to be provided to Secretary
Notwithstanding any other provision of law—
(1) any Federal agency or court which collects (or is required to collect) the statement under subsection (a) shall provide to the Secretary—
(A) a copy of any such statement, and
(B) the name (and any other identifying information) of any individual refusing to comply with the provisions of subsection (a),
(2) the Secretary of State shall provide to the Secretary a copy of each certificate as to the loss of American nationality under section 358 of the Immigration and Nationality Act which is approved by the Secretary of State, and
(3) the Federal agency primarily responsible for administering the immigration laws shall provide to the Secretary the name of each lawful permanent resident of the United States (within the meaning of section 7701(b)(6)) whose status as such has been revoked or has been administratively or judicially determined to have been abandoned.
Notwithstanding any other provision of law, not later than 30 days after the close of each calendar quarter, the Secretary shall publish in the Federal Register the name of each individual losing United States citizenship (within the meaning of section 877(a) or 877A) with respect to whom the Secretary receives information under the preceding sentence during such quarter.
(Added
Editorial Notes
References in Text
Section 358 of the Immigration and Nationality Act, referred to in subsec. (d)(2), is classified to
Amendments
2008—Subsec. (a).
Subsec. (d).
2004—Subsec. (a).
"(1) provided not later than the earliest date of any act referred to in subsection (c), and
"(2) provided to the person or court referred to in subsection (c) with respect to such act."
Subsec. (b).
Subsec. (c).
"(1) the individual's renunciation of his United States nationality before a diplomatic or consular officer of the United States pursuant to paragraph (5) of section 349(a) of the Immigration and Nationality Act (
"(2) the individual's furnishing to the United States Department of State a signed statement of voluntary relinquishment of United States nationality confirming the performance of an act of expatriation specified in paragraph (1), (2), (3), or (4) of section 349(a) of the Immigration and Nationality Act (
"(3) the issuance by the United States Department of State of a certificate of loss of nationality to the individual, or
"(4) the cancellation by a court of the United States of a naturalized citizen's certificate of naturalization."
Subsec. (d).
"(1) 5 percent of the tax required to be paid under section 877 for the taxable year ending during such year, or
"(2) $1,000,
unless it is shown that such failure is due to reasonable cause and not to willful neglect."
Subsec. (e).
Subsec. (f).
Subsec. (g).
1997—
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date
For special rule relating to application of this section to certain individuals who performed an act of expatriation specified in section 1481(a)(1)–(4) of Title 8, Aliens and Nationality, before Feb. 6, 1995, see section 511(g)(3) of
"(1) individuals losing United States citizenship (within the meaning of section 877 of the Internal Revenue Code of 1986) on or after February 6, 1995, and
"(2) long-term residents of the United States with respect to whom an event described in [former] subparagraph (A) or (B) of section 877(e)(1) of such Code occurs on or after such date.
In no event shall any statement required by such amendments be due before the 90th day after the date of the enactment of this Act [Aug. 21, 1996]."
§6039H. Information with respect to Alaska Native Settlement Trusts and Native Corporations
(a) Requirement
The fiduciary of an electing Settlement Trust (as defined in section 646(h)(1)) shall include with the return of income of the trust a statement containing the information required under subsection (c).
(b) Application with other requirements
The filing of any statement under this section shall be in lieu of the reporting requirements under section 6034A to furnish any statement to a beneficiary regarding amounts distributed to such beneficiary (and such other reporting rules as the Secretary deems appropriate).
(c) Required information
The information required under this subsection shall include—
(1) the amount of distributions made during the taxable year to each beneficiary,
(2) the treatment of such distribution under the applicable provision of section 646, including the amount that is excludable from the recipient beneficiary's gross income under section 646, and
(3) the amount (if any) of any distribution during such year that is deemed to have been made by the sponsoring Native Corporation (as defined in section 646(h)(5)).
(d) Sponsoring Native Corporation
(1) In general
The electing Settlement Trust shall, on or before the date on which the statement under subsection (a) is required to be filed, furnish such statement to the sponsoring Native Corporation (as so defined).
(2) Distributees
The sponsoring Native Corporation shall furnish each recipient of a distribution described in section 646(e)(3) a statement containing the amount deemed to have been distributed to such recipient by such corporation for the taxable year.
(e) Deductible contributions by Native Corporations to Alaska Native Settlement Trusts
(1) In general
Any Native Corporation (as defined in subsection (m) of section 3 of the Alaska Native Claims Settlement Act (
(2) Content of statement
The statement described in paragraph (1) shall include—
(A) the total amount of contributions to which the election under subsection (e) of section 247 applies,
(B) for each contribution, whether such contribution was in cash,
(C) for each contribution which consists of property other than cash, the date that such property was acquired by the Native Corporation and the adjusted basis and fair market value of such property on the date such property was contributed to the Settlement Trust,
(D) the date on which each contribution was made to the Settlement Trust, and
(E) such information as the Secretary determines to be necessary or appropriate for the identification of each contribution and the accurate inclusion of income relating to such contributions by the Settlement Trust.
(Added
Editorial Notes
Amendments
2017—
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Effective Date
Section applicable to taxable years ending after June 7, 2001, and to contributions made to electing Settlement Trusts for such year or any subsequent year, see section 671(d) of
§6039I. Returns and records with respect to employer-owned life insurance contracts
(a) In general
Every applicable policyholder owning 1 or more employer-owned life insurance contracts issued after the date of the enactment of this section shall file a return (at such time and in such manner as the Secretary shall by regulations prescribe) showing for each year such contracts are owned—
(1) the number of employees of the applicable policyholder at the end of the year,
(2) the number of such employees insured under such contracts at the end of the year,
(3) the total amount of insurance in force at the end of the year under such contracts,
(4) the name, address, and taxpayer identification number of the applicable policyholder and the type of business in which the policyholder is engaged, and
(5) that the applicable policyholder has a valid consent for each insured employee (or, if all such consents are not obtained, the number of insured employees for whom such consent was not obtained).
(b) Recordkeeping requirement
Each applicable policyholder owning 1 or more employer-owned life insurance contracts during any year shall keep such records as may be necessary for purposes of determining whether the requirements of this section and section 101(j) are met.
(c) Definitions
Any term used in this section which is used in section 101(j) shall have the same meaning given such term by section 101(j).
(Added
Editorial Notes
References in Text
The date of the enactment of this section, referred to in subsec. (a), is the date of enactment of
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to life insurance contracts issued after Aug. 17, 2006, except for a contract issued after such date pursuant to an exchange described in
§6039J. Information reporting with respect to Commodity Credit Corporation transactions
(a) Requirement of reporting
The Commodity Credit Corporation, through the Secretary of Agriculture, shall make a return, according to the forms and regulations prescribed by the Secretary of the Treasury, setting forth any market gain realized by a taxpayer during the taxable year in relation to the repayment of a loan issued by the Commodity Credit Corporation, without regard to the manner in which such loan was repaid.
(b) Statements to be furnished to persons with respect to whom information is required
The Secretary of Agriculture shall furnish to each person whose name is required to be set forth in a return required under subsection (a) a written statement showing the amount of market gain reported in such return.
(Added
Editorial Notes
Codification
Statutory Notes and Related Subsidiaries
Effective Date
Enactment of this section and repeal of
[
§6040. Cross references
(1) For the notice required of persons acting in a fiduciary capacity for taxpayers or for transferees, see sections 6212, 6901(g), and 6903.
(2) For application by fiduciary for determination of tax and discharge from personal liability therefor, see section 2204.
(3) For the notice required of taxpayers for redetermination of taxes claimed as credits, see sections 905(c) and 2016.
(4) For exemption certificates required to be furnished to employers by employees, see section 3402(f)(2), (3), (4), and (5).
(5) For receipts, constituting information returns, required to be furnished to employees, see section 6051.
[(6) Repealed.
(7) For information required with respect to the redemption of stamps, see section 6805.
(8) For the statement required to be filed by a corporation expecting a net operating loss carryback or unused excess profits credit carryback, see section 6164.
(9) For the application, which a taxpayer may file for a tentative carryback adjustment of income taxes, see section 6411.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1970—Par. (2).
1965—Par. (6).
Statutory Notes and Related Subsidiaries
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by