Internal Revenue Code:Sec. 6034A. Information to beneficiaries of estates and trusts

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle F - Procedure and Administration
       CHAPTER 61 - INFORMATION AND RETURNS
        Subchapter A - Returns and Records
         PART III - INFORMATION RETURNS
          Subpart A - Information Concerning Persons Subject to Special
                Provisions
         

Statute

    Sec. 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 chapter 68.
 

Sources

    (Added Pub. L. 98-369, div.  A, title VII, Sec. 714(q)(1), July 18,
    1984, 98 Stat. 965; amended Pub. L. 99-514, title XV, Sec.
    1501(c)(15), title XVIII, Sec. 1875(d)(3)(A), Oct. 22, 1986, 100
    Stat. 2740, 2896; Pub. L. 105-34, title X, Sec. 1027(a), Aug. 5,
    1997, 111 Stat. 925.)
 

Miscellaneous

                                 AMENDMENTS
      1997 - Subsec. (c). Pub. L. 105-34 added subsec. (c).
      1986 - Subsec. (a). Pub. L. 99-514, Sec. 1501(c)(15), in
    introductory provisions, substituted ''required to file a return''
    for ''making the return required to be filed'' and ''was required
    to be filed'' for ''was filed'', and in concluding provisions,
    substituted ''required to be shown on such return'' for ''shown on
    such return''.
      Pub. L. 99-514, Sec. 1875(d)(3)(A)(i), (ii), designated existing
    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, Sec. 1875(d)(3)(A)(iii), added
    subsec. (b).
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Section 1027(c) of Pub. L. 105-34 provided that: ''The amendments
    made by this section (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 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.
      Section 1875(d)(3)(B) of Pub. L. 99-514 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
      Section 714(q)(5) of Pub. L. 98-369 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 (Sec. 1101-1147 and 1171-1177) or title
    XVIII (Sec. 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.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 6039H, 6048, 6724 of this
    title.