26 U.S.C. § 6035 — Basis information to persons acquiring

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 Page 3331 TITLE 26—INTERNAL REVENUE CODE § 6037 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 ear- lier of— (i) the date which is 30 days after the date on which the return under section 6018 was required to be filed (including ex- tensions, 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 adjust- ment to the information required to be in- cluded on a statement filed under paragraph (1) or (2) after such statement has been filed, a supplemental statement under such para- graph 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 prop- erty 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 in- formation than the executor regarding the basis or fair market value of the property. (Added Pub. L. 114–41, title II, § 2004(b)(1), July 31, 2015, 129 Stat. 455.) Editorial Notes PRIOR PROVISIONS A prior section 6035, act Aug. 16, 1954, ch. 736, 68A Stat. 743; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, § 340(a), Sept. 3, 1982, 96 Stat. 633, related to information returns of officers, directors, and shareholders of foreign per- sonal holding companies, prior to repeal by Pub. L. 108–357, title IV, § 413(c)(26), (d)(1), Oct. 22, 2004, 118 Stat. 1509, 1510, applicable to taxable years of foreign cor- porations beginning after Dec. 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end. 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 sec- tion 2004(d) of Pub. L. 114–41, set out as an Effective Date of 2015 Amendment note under section 1014 of this title. § 6036. Notice of qualification as executor or re- ceiver Every receiver, trustee in a case under title 11 of the United States Code, assignee for benefit of creditors, or other like fiduciary, and every ex- ecutor (as defined in section 2203), shall give no- tice of his qualification as such to the Secretary in such manner and at such time as may be re- quired by regulations of the Secretary. The Sec- retary may by regulation provide such exemp- tions from the requirements of this section as the Secretary deems proper. (Aug. 16, 1954, ch. 736, 68A Stat. 744; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–589, § 6(i)(6), Dec. 24, 1980, 94 Stat. 3410.) Editorial Notes AMENDMENTS 1980—Pub. L. 96–589 substituted ‘‘trustee in a case under title 11 of the United States Code’’ for ‘‘trustee in bankruptcy’’. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–589 effective Oct. 1, 1979, but not applicable to proceedings under Title 11, Bank- ruptcy, commenced before Oct. 1, 1979, see section 7(e) of Pub. L. 96–589, set out as a note under section 108 of this title. § 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 chapter 1, as the Secretary may by forms and regulations prescribe. Any return filed pursuant to this sec- tion shall, for purposes of chapter 66 (relating to limitations), be treated as a return filed by the corporation under section 6012. (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 per- son 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 reg- ulations. (c) Shareholder’s return must be consistent with corporate return or Secretary notified of in- consistency (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—