26 U.S.C. § 6034A — Information to beneficiaries of estates

Page 3329 TITLE 26—INTERNAL REVENUE CODE § 6034A (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 deduc- tions 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 de- scribed 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, li- abilities, 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, deter- mined 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, 68A Stat. 742; Pub. L. 91–172, title I, § 101(j)(32)–(34), Dec. 30, 1969, 83 Stat. 529; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–603, § 1(d)(1), Dec. 28, 1980, 94 Stat. 3504; Pub. L. 99–514, title XV, § 1501(d)(1)(C), Oct. 22, 1986, 100 Stat. 2740; Pub. L. 109–280, title XII, § 1201(b)(1), Aug. 17, 2006, 120 Stat. 1064.) Editorial Notes AMENDMENTS 2006—Pub. L. 109–280, which directed the general amendment of section 6034 without specifying the act to be amended, was executed to this section, which is section 6034 of the Internal Revenue Code of 1986, to re- flect the probable intent of Congress. Prior to amend- ment, this section consisted of subsecs. (a) to (c) stat- ing a general rule requiring certain trusts to furnish in- formation as the Secretary may by forms and regula- tions prescribe, allowing for exceptions to the rule, and providing a cross reference relating to penalties for failure to file a return. 1986—Subsec. (c). Pub. L. 99–514 substituted ‘‘section 6652(c)’’ for ‘‘section 6652(d)’’. 1980—Pub. L. 96–603, § 1(d)(1)(D), substituted ‘‘section 4947(a)(2)’’ for ‘‘section 4947(a)’’ in section catchline. Subsec. (a). Pub. L. 96–603, § 1(d)(1)(A), substituted ‘‘section 4947(a)(2)’’ for ‘‘section 4947(a)’’. Subsec. (b). Pub. L. 96–603, § 1(d)(1)(B), (C), substituted in heading ‘‘Exceptions’’ for ‘‘Exception’’ and in text inserted provision that this section not apply in the case of a trust described in section 4947(a)(1). 1976—Subsec. (a). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1969—Subsec. (a). Pub. L. 91–172, § 101(j)(32), (33), in- serted, in section catchline and in subsec. (a), reference to trusts described in section 4947(a), and, in par. (1), struck out provisions requiring the separate showing of the amount of deduction paid out, and the amount per- manently set aside for charitable, etc., purposes. Subsec. (c). Pub. L. 91–172, § 101(j)(34), added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–280, title XII, § 1201(c)(2), Aug. 17, 2006, 120 Stat. 1066, provided that: ‘‘The amendments made by subsection (b) [amending this section and sections 6104 and 6652 of this title] shall apply to returns for taxable years beginning after December 31, 2006.’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1986, see section 1501(e) of Pub. L. 99–514, set out as an Effective Date note under section 6721 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–603 applicable to taxable years beginning after Dec. 31, 1980, see section 1(f) of Pub. L. 96–603, set out as a note under section 6033 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 101(k)(2)(B) of Pub. L. 91–172, set out as an Effective Date note under section 4940 of this title. § 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 tax- able 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 es- tate 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 re- quired to be shown on such return as the Sec- retary 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 pre- scribe, and (2) shall furnish in the manner prescribed by the Secretary to such other person the infor- mation 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 bene- ficiary’s return, treat any reported item in a manner which is consistent with the treat- ment 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— Page 3330 TITLE 26—INTERNAL REVENUE CODE § 6035 (i)(I) the applicable entity has filed a re- turn but the beneficiary’s treatment on such beneficiary’s return is (or may be) in- consistent 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 Sec- retary a statement identifying the incon- sistency, paragraph (1) shall not apply to such item. (B) Beneficiary receiving incorrect informa- tion A beneficiary shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a reported item if the bene- ficiary— (i) demonstrates to the satisfaction of the Secretary that the treatment of the re- ported item on the beneficiary’s return is consistent with the treatment of the item on the statement furnished under sub- section (a) to the beneficiary by the appli- cable 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 com- ply with subparagraph (A)(ii) of paragraph (2), any adjustment required to make the treat- ment of the items by such beneficiary con- sistent 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 fur- nished 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 bene- ficiary’s negligence in connection with, or dis- regard of, the requirements of this section, see part II of subchapter A of chapter 68. (Added Pub. L. 98–369, div. A, title VII, § 714(q)(1), July 18, 1984, 98 Stat. 965; amended Pub. L. 99–514, title XV, § 1501(c)(15), title XVIII, § 1875(d)(3)(A), Oct. 22, 1986, 100 Stat. 2740, 2896; Pub. L. 105–34, title X, § 1027(a), Aug. 5, 1997, 111 Stat. 925.) Editorial Notes AMENDMENTS 1997—Subsec. (c). Pub. L. 105–34 added subsec. (c). 1986—Subsec. (a). Pub. L. 99–514, § 1501(c)(15), in intro- ductory provisions, substituted ‘‘required to file a re- turn’’ for ‘‘making the return required to be filed’’ and ‘‘was required to be filed’’ for ‘‘was filed’’, and in con- cluding provisions, substituted ‘‘required to be shown on such return’’ for ‘‘shown on such return’’. Pub. L. 99–514, § 1875(d)(3)(A)(i), (ii), designated exist- ing provisions as subsec. (a), inserted heading ‘‘General rule’’, and substituted ‘‘each beneficiary (or nominee thereof)’’ for ‘‘each beneficiary’’ in text. Subsec. (b). Pub. L. 99–514, § 1875(d)(3)(A)(iii), added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–34, title X, § 1027(c), Aug. 5, 1997, 111 Stat. 926, provided that: ‘‘The amendments made by this sec- tion [amending this section and section 6048 of this title] shall apply to returns of beneficiaries and owners filed after the date of the enactment of this Act [Aug. 5, 1997].’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 1501(c)(15) of Pub. L. 99–514 ap- plicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1986, see section 1501(e) of Pub. L. 99–514, set out as an Effective Date note under section 6721 of this title. Pub. L. 99–514, title XVIII, § 1875(d)(3)(B), Oct. 22, 1986, 100 Stat. 2897, provided that: ‘‘The amendments made by this paragraph [amending this section] shall apply to taxable years of estates and trusts beginning after the date of the enactment of this Act [Oct. 22, 1986].’’ EFFECTIVE DATE Pub. L. 98–369, div. A, title VII, § 714(q)(5), July 18, 1984, 98 Stat. 966, provided that: ‘‘The amendments made by this subsection [enacting this section and amending sections 6037 and 6678 of this title] shall apply to taxable years beginning after December 31, 1984.’’ 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 Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. § 6035. Basis information to persons acquiring property from decedent (a) Information with respect to property ac- quired 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 dece- dent’s gross estate for Federal estate tax pur- poses 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