§ 6048. Information with respect to certain foreign trusts

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1962

   Revenue Act of 1962

   Pub. L. 87–834 § 7(f) · 76 Stat. 960

   Enacted · 26 U.S.C. § 6048

   Added Pub. L. 87–834, § 7(f), Oct. 16, 1962, 76 Stat. 987

   Source evidence

   Code source credit
   Added Pub. L. 87–834, § 7(f), Oct. 16, 1962, 76 Stat. 987

   Enacted provision · exact public law section
   (f) Information Returns With Respect to Foreign Trusts.— Subpart B of part III of subchapter A of chapter 61 (relating to infor-niation concerning transactions with other persons) is amended by adding at the end thereof the following new section: “SEC. 6048. RETURNS AS TO CREATION OF OR TRANSFERS TO CERTAIN FOREIGN TRUSTS. “(a) General Rule.— On or before the 90th day after— “(1) the creation of any foreign trust by a United States person, or “(2) the transfer of any money or property to a foreign trust by a United States person, the grantor in the case of an inter vivos trust, the fiduciary of an estate in the case of a testamentary trust, or the transferor, as the case may lie, shall make a return in compliance with the provisions of subsection (b). “(b) Form and Contents of Returns.— The returns required by subsection (a) shall be in such form and shall set forth, in respect of the foreign trust, such information as the Secretary or his delegate prescribes by regulation as necessary for carrying out the provisions of the income tax laws. “(c) Cross References.— “(1) For provisions relating to penalties for violations of this Infra; 26 USC 7203. Ante, p. 985. section, see sections 6677 and 7203. “(2) For definition of the term ‘foreign trust created by a United States person’, see section 643(d).”

2. 1976

   Pub. L. 94–455 § 1013(e)(4) · 90 Stat. 1520

   Struck · 26 U.S.C. § 6048

   Pub. L. 94–455, § 1013(e)(4), struck out “creation of or transfer to” after “Returns as to” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 94–455, § 1013(e)(4), struck out “creation of or transfer to” after “Returns as to” in section catchline.

   Enacted provision · exact public law section
   (4) The heading of section 6048 is amended to read as follows: “SEC. 6048. RETURNS AS TO CERTAIN FOREIGN TRUSTS.”.

3. 1976

   Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 6048(b)

   Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

   Enacted provision · exact public law section
   (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

4. 1976

   Pub. L. 94–455 § 1013(d)(1) · 90 Stat. 1520

   1. Added · 26 U.S.C. § 6048(c); 26 U.S.C. § 6048(d)

      Pub. L. 94–455, § 1013(d)(1), (e)(3), added subsec. (c)

   2. Redesignated · 26 U.S.C. § 6048(c); 26 U.S.C. § 6048(d)

      Pub. L. 94–455, § 1013(d)(1), (e)(3), redesignated former subsec. (c) as (d), and in subsec. (d) struck out cross reference to section 643(d) for definition of “foreign trust created by a United States person”

   Source evidence

   Code amendment note
   Subsecs. (c), (d). Pub. L. 94–455, § 1013(d)(1), (e)(3), added subsec. (c), redesignated former subsec. (c) as (d), and in subsec. (d) struck out cross reference to section 643(d) for definition of “foreign trust created by a United States person”.

   Enacted provision · exact public law section
   (1) Section 6048 (relating to returns as to creation of or transfers to certain foreign trusts) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: “(c) Annual Returns for Foreign Trusts Having One on More United States Beneficiaries.— Each taxpayer subject to tax under section 679 (relating to foreign trusts having one or more United States beneficiaries) for his taxable year with respect to any trust shall make a return with respect to such trust for such year at such time and in such manner, and setting forth such information, as the Secretary may by regulations prescribe”,

5. 1982

   Pub. L. 97–248 title III § 341(b) · 96 Stat. 324

   Inserted · 26 U.S.C. § 6048(a)

   Pub. L. 97–248 inserted “(or on or before such later day as the Secretary may by regulations prescribe)” after “the 90th day”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–248 inserted “(or on or before such later day as the Secretary may by regulations prescribe)” after “the 90th day”.

   Enacted provision · exact public law section
   (b) Foreign Trusts.— Subsection (a) of section 6048 (relating to 26 USC 6048. returns as to certain foreign trusts) is amended by inserting “(or on or before such later day as the Secretary may by regulations prescribe)” after “the 90th day”.

6. 1996

   Small Business Job Protection Act of 1996

   Pub. L. 104–188 title I § 1901(a) · 110 Stat. 1755

   1. Amended · 26 U.S.C. § 6048

      Pub. L. 104–188 amended section generally

   2. Substituted · 26 U.S.C. § 6048

      Pub. L. 104–188 substituting provisions calling for improved information reporting on foreign trusts for provisions calling for the filing of returns as to foreign trusts, prescribing the form and contents of such returns, and requiring annual returns for foreign trusts with one or more United States beneficiaries

   Source evidence

   Code amendment note
   Pub. L. 104–188 amended section generally, substituting provisions calling for improved information reporting on foreign trusts for provisions calling for the filing of returns as to foreign trusts, prescribing the form and contents of such returns, and requiring annual returns for foreign trusts with one or more United States beneficiaries.

   Enacted provision · exact public law section
   (a) In General.— Section 6048 (relating to returns as to certain foreign trusts) is amended to read as follows: “SEC. 6048. INFORMATION WITH RESPECT TO CERTAIN FOREIGN TRUSTS. “(a) Notice of Certain Events.— “(1) General rule.— On or before the 90th day (or such later day as the Secretary may prescribe) after any reportable event, the responsible party shall provide written notice of such event to the Secretary in accordance with paragraph (2). “(2) Contents of notice.— The notice required by paragraph (1) shall contain such information as the Secretary may prescribe, including— “(A) the amount of money or other property (if any) transferred to the trust in connection with the reportable event, and “(B) the identity of the trust and of each trustee and beneficiary (or class of beneficiaries)of the trust. “(3) Reportable Event.— For purposes of this subsection— “(A) In general.— The term ‘reportable event’ means— “(i) the creation of any foreign trust by a United States person, “(ii) the transfer of any money or properly (directly or indirectly) to a foreign trust by a United States person, including a transfer by reason of death, and “(iii) the death of a citizen or resident of the United States if— “(I) the decedent was treated as the owner of any portion of a foreign trust under the rules of subpart E of part I of subchapter J of chapter 1, or “(II) any portion of a foreign trust was included in the gross estate of the decedent. “(B) Exceptions.— “(i) Fair market value sales.— Subparagraph (A)(ii) shall not apply to any transfer of property to a trust in exchange for consideration of at least the fair market value of the transferred property. For purposes of the preceding sentence, consideration other than cash shall be taken into account at its fair market value and the rules of section 679(a)(3) shall apply. “(ii) Deferred compensation and charitable trusts.— Subparagraph (A) shall not apply with respect to a trust which is— “(I) described in section 402(b), 404(a)(4), or 404A, or “(II) determined by the Secretary to be described in section 501(c)(3). “(4) Responsible party.— For purposes of this subsection, the term ‘responsible party’ means— “(A) the grantor in the case of the creation of an inter vivos trust, “(B) the transferor in the case of a reportable event described in paragraph (3)(A)(ii) other than a transfer by reason of death, and “(C) the executor of the decedent’s estate in any other case. “(b) United States Grantor of Foreign Trust.— “(1) In general.— If, at any time during any taxable year of a United States person, such person is treated as the owner of any portion of a foreign trust under the rules of subpart E of part I of subchapter J of chapter 1, such person shall be responsible to ensure that— “(A) such trust makes a return for such year which sets forth a full and complete accounting of all trust activities and operations for the year, the name of the United States agent for such trust, and such other information as the Secretary may prescribe, and “(B) such trust furnishes such information as the Secretary may prescribe to each United States person (i) who is treated as the owner of any portion of such trust or (ii) who receives (directly or indirectly) any distribution from the trust. “(2) Trusts not having united states agent.— “(A) In general.— If the rules of this paragraph apply to any foreign trust, the determination of amounts required to be taken into account with respect to such trust by a United States person under the rules of subpart E of part I of subchapter J of chapter 1 shall be determined by the Secretary. “(B) United states agent required.— The rules of this paragraph shall apply to any foreign trust to which paragraph (1) applies unless such trust agrees (in such manner, subject to such conditions, and at such time as the Secretary shall prescribe) to authorize a United States person to act as such trust’s limited agent solely for purposes of applying sections 7602, 7603, and 7604 with respect to— “(i) any request by the Secretary to examine records or produce testimony related to the proper treatment of amounts required to be taken into account under the rules referred to in subparagraph (A), or “(ii) any summons by the Secretary for such records or testimony. The appearance of persons or production of records by reason of a United States person 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 the amounts required to be taken into account under the rules referred to in subparagraph (A). A foreign trust which appoints an agent described in this subparagraph shall not be considered to have an office or a permanent establishment in the United States, or to be engaged in a trade or business in the United States, solely because of the activities of such agent pursuant to this subsection. “(C) Other rules to apply.— Rules similar to the rules of paragraphs (2) and (4) of section 6038A(e) shall apply for purposes of this paragraph. “(c) Reporting by United States Beneficiaries of Foreign Trusts.— “(1) In general.— If any United States person receives (directly or indirectly) during any taxable year of such person any distribution from a foreign trust, such person shall make a return with respect to such trust for such year which includes— “(A) the name of such trust, “(B) the aggregate amount of the distributions so received from such trust during such taxable year, and “(C) such other information as the Secretary may prescribe. “(2) Inclusion in income if records not provided.— “(A) In general.— If adequate records are not provided to the Secretary to determine the proper treatment of any distribution from a foreign trust, such distribution shall be treated as an accumulation distribution includible in the gross income of the distributee under chapter 1. To the extent provided in regulations, the preceding sentence shall not apply if the foreign trust elects to be subject to rules similar to the rules of subsection (b)(2)(B). “(B) Application of accumulation distribution rules.— For purposes of applying section 668 in a case to which subparagraph (A) applies, the applicable number of years for purposes of section 668(a) shall be ½ of the number ofyears the trust has been in existence. “(d) Special Rules.— “(1) Determination of whether united states person makes transfer or receives distribution.— For purposes of this section, in determining whether a United States person makes a transfer to, or receives a distribution from, a foreign trust, the fact that a portion of such trust is treated as owned by another person under the rules of subpart E of part I of subchapter J of chapter 1 shall be disregarded. “(2) Domestic trusts with foreign activities.— To the extent provided in regulations, a trust which is a United States person shall be treated as a foreign trust for purposes of this section and section 6677 if such trust has substantial activities, or holds substantial property, outside the United States. “(3) Time and manner of filing information.— Any notice or return required under this section shall be made at such time and in such manner as the Secretary shall prescribe. “(4) Modification of return requirements.— The Secretary is authorized to suspend or modify any requirement of this section if the Secretary determines that the United States has no significant tax interest in obtaining the required information.”.

7. 1997

   Pub. L. 105–34 § 1601(i)(1) · 111 Stat. 788

   Substituted · 26 U.S.C. § 6048(b)

   Pub. L. 105–34, § 1601(i)(1), substituted “owner” for “grantor” in heading

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 105–34, § 1601(i)(1), substituted “owner” for “grantor” in heading.

   Enacted provision · exact public law section
   (1) Amendment related to section 1901.— Subsection (b) of section 6048 is amended in the heading by striking “Grantor” and inserting “Owner”.

8. 1997

   Pub. L. 105–34 § 1027(b) · 111 Stat. 788

   Added · 26 U.S.C. § 6048(d)(5)

   Pub. L. 105–34, § 1027(b), added par. (5)

   Source evidence

   Code amendment note
   Subsec. (d)(5). Pub. L. 105–34, § 1027(b), added par. (5).

   Enacted provision · exact public law section
   SEC. 1027. RETURNS OF BENEFICIARIES OF ESTATES AND TRUSTS REQUIRED TO FILE RETURNS CONSISTENT WITH ESTATE OR TRUST RETURN OR TO NOTIFY SECRETARY OF INCONSISTENCY. (a) Domestic Estates and Trusts.— Section 6034A (relating to information to beneficiaries of estates and trusts) is amended by adding at the end the following new subsection: “(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 chapter 68.”. (b) Foreign Trusts.— Subsection (d) of section 6048 (relating to information with respect to certain foreign trusts) is amended by adding at the end the following new paragraph: “(5) United states person’s return must be consistent with trust return or secretary notified of inconsistency.— Rules similar to the rules of section 6034A(c) shall apply to items reported by a trust under subsection (b)(1)(B) and to United States persons referred to in such subsection.”. (c) Effective Date.— The amendments made by this section shall apply to returns of beneficiaries and owners filed after the date of the enactment of this Act.

9. 2010

   Hiring Incentives to Restore Employment Act

   Pub. L. 111–147 title V § 534(a) · 124 Stat. 71

   Inserted · 26 U.S.C. § 6048(b)(1)

   Pub. L. 111–147 inserted “shall submit such information as the Secretary may prescribe with respect to such trust for such year and” before “shall be responsible to ensure” in introductory provisions

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 111–147 inserted “shall submit such information as the Secretary may prescribe with respect to such trust for such year and” before “shall be responsible to ensure” in introductory provisions.

   Enacted provision · exact public law section
   (a) In General.— Paragraph (1) of section 6048(b) is amended by inserting “shall submit such information as the Secretary may prescribe with respect to such trust for such year and” before “shall be responsible to ensure”.

   Effective date note
   Pub. L. 111–147, title V, § 534(b), Mar. 18, 2010, 124 Stat. 115, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Mar. 18, 2010].”

11 of 11 references resolved to an enrolled provision