Internal Revenue Code:Sec. 6050J. Returns relating to foreclosures and abandonments of security

From TaxAlmanac

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 B - Information Concerning Transactions With Other Persons
        

Statute

    Sec. 6050J. Returns relating to foreclosures and abandonments of
        security
 
    (a) In general
      Any person who, in connection with a trade or business conducted
    by such person, lends money secured by property and who -
        (1) in full or partial satisfaction of any indebtedness,
      acquires an interest in any property which is security for such
      indebtedness, or
        (2) has reason to know that the property in which such person
      has a security interest has been abandoned,
    shall make a return described in subsection (c) with respect to
    each of such acquisitions or abandonments, at such time as the
    Secretary may by regulations prescribe.
    (b) Exception
      Subsection (a) shall not apply to any loan to an individual
    secured by an interest in tangible personal property which is not
    held for investment and which is not used in a trade or business.
    (c) Form and manner of return
      The return required under subsection (a) with respect to any
    acquisition or abandonment of property -
        (1) shall be in such form as the Secretary may prescribe,
        (2) shall contain -
          (A) the name and address of each person who is a borrower
        with respect to the indebtedness which is secured,
          (B) a general description of the nature of such property and
        such indebtedness,
          (C) in the case of a return required under subsection (a)(1)
        -
            (i) the amount of such indebtedness at the time of such
          acquisition, and
            (ii) the amount of indebtedness satisfied in such
          acquisition,
          (D) in the case of a return required under subsection (a)(2),
        the amount of such indebtedness at the time of such
        abandonment, and
          (E) such other information as the Secretary may prescribe.
    (d) Applications to governmental units
      For purposes of this section -
      (1) Treated as persons
        The term ''person'' includes any governmental unit (and any
      agency or instrumentality thereof).
      (2) Special rules
        In the case of a governmental unit or any agency or
      instrumentality thereof -
          (A) subsection (a) shall be applied without regard to the
        trade or business requirement contained therein, and
          (B) any return under this section shall be made by the
        officer or employee appropriately designated for the purpose of
        making such return.
    (e) Statements to be furnished to persons with respect to whom
        information is required to be furnished
      Every person required to make a return under subsection (a) shall
    furnish to each person whose name is required to be set forth in
    such return a written statement showing the name, address, and
    phone number of the information contact of the person required to
    make such return.  The written statement required under the
    preceding sentence shall be furnished to the person on or before
    January 31 of the year following the calendar year for which the
    return under subsection (a) was made.
    (f) Treatment of other dispositions
      To the extent provided by regulations prescribed by the
    Secretary, any transfer of the property which secures the
    indebtedness to a person other than the lender shall be treated as
    an abandonment of such property.
 

Sources

    (Added Pub. L. 98-369, div.  A, title I, Sec. 148(a), July 18,
    1984, 98 Stat. 687; amended Pub. L. 104-168, title XII, Sec.
    1201(a)(10), July 30, 1996, 110 Stat. 1470.)
 

Miscellaneous

                                 AMENDMENTS
      1996 - Subsec. (e). Pub. L. 104-168 substituted ''name, address,
    and phone number of the information contact'' for ''name and
    address''.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-168 applicable to statements required to
    be furnished after Dec. 31, 1996 (determined without regard to any
    extension), see section 1201(b) of Pub. L. 104-168, set out as a
    note under section 6041 of this title.
                               EFFECTIVE DATE
      Section 148(d) of Pub. L. 98-369 provided that: ''The amendments
    made by this section (enacting this section and amending sections
    6652 and 6678 of this title) shall apply with respect to
    acquisitions of property and abandonments of property after
    December 31, 1984.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 6721, 6722, 6724 of this
    title.