Internal Revenue Code:Sec. 6050P. Returns relating to the cancellation of indebtedness by certain entities

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. 6050P. Returns relating to the cancellation of indebtedness by
        certain entities
 
    (a) In general
      Any applicable entity which discharges (in whole or in part) the
    indebtedness of any person during any calendar year shall make a
    return (at such time and in such form as the Secretary may by
    regulations prescribe) setting forth -
        (1) the name, address, and TIN of each person whose
      indebtedness was discharged during such calendar year,
        (2) the date of the discharge and the amount of the
      indebtedness discharged, and
        (3) such other information as the Secretary may prescribe.
    (b) Exception
      Subsection (a) shall not apply to any discharge of less than
    $600.
    (c) Definitions and special rules
      For purposes of this section -
      (1) Applicable entity
        The term ''applicable entity'' means -
          (A) an executive, judicial, or legislative agency (as defined
        in section 3701(a)(4) of title 31, United States Code), and
          (B) an applicable financial entity.
      (2) Applicable financial entity
        The term ''applicable financial entity'' means -
          (A) any financial institution described in section 581 or
        591(a) and any credit union,
          (B) the Federal Deposit Insurance Corporation, the Resolution
        Trust Corporation, the National Credit Union Administration,
        and any other Federal executive agency (as defined in section
        6050M), and any successor or subunit of any of the foregoing,
          (C) any other corporation which is a direct or indirect
        subsidiary of an entity referred to in subparagraph (A) but
        only if, by virtue of being affiliated with such entity, such
        other corporation is subject to supervision and examination by
        a Federal or State agency which regulates entities referred to
        in subparagraph (A), and
          (D) any organization a significant trade or business of which
        is the lending of money.
      (3) Governmental units
        In the case of an entity described in paragraph (1)(A) or
      (2)(B), any return under this section shall be made by the
      officer or employee appropriately designated for the purpose of
      making such return.
    (d) Statements to be furnished to persons with respect to whom
        information is required to be furnished
      Every applicable entity 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 -
        (1) the name and address of the entity required to make such
      return, and
        (2) the information required to be shown on the return with
      respect to such person.
    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.
    (e) Alternative procedure
      In lieu of making a return required under subsection (a), an
    agency described in subsection (c)(1)(A) may submit to the
    Secretary (at such time and in such form as the Secretary may by
    regulations prescribe) information sufficient for the Secretary to
    complete such a return on behalf of such agency.  Upon receipt of
    such information, the Secretary shall complete such return and
    provide a copy of such return to such agency.
 

Sources

    (Added Pub. L. 103-66, title XIII, Sec. 13252(a), Aug. 10, 1993,
    107 Stat. 531; amended Pub. L. 104-134, title III, Sec.
    31001(m)(2)(A)-(D)(ii), Apr. 26, 1996, 110 Stat. 1321-368,
    1321-369; Pub. L. 106-170, title V, Sec. 533(a), Dec. 17, 1999, 113
    Stat. 1931.)
 

Miscellaneous

                                 AMENDMENTS
      1999 - Subsec. (c)(2)(D). Pub. L. 106-170 added subpar. (D).
      1996 - Pub. L. 104-134, Sec. 31001(m)(2)(D)(ii), amended section
    catchline generally, striking out ''financial'' before
    ''entities''.
      Subsec. (a). Pub. L. 104-134, Sec. 31001(m)(2)(A), struck out
    ''financial'' before ''entity'' in introductory provisions.
      Subsec. (c). Pub. L. 104-134, Sec. 31001(m)(2)(B), added par.
    (1), redesignated former par. (1) as (2), and redesignated former
    par. (2) as (3) and substituted ''(1)(A) or (2)(B)'' for
    ''(1)(B)''.
      Subsec. (d). Pub. L. 104-134, Sec. 31001(m)(2)(D)(i), struck out
    ''financial'' before ''entity'' in introductory provisions.
      Subsec. (e). Pub. L. 104-134, Sec. 31001(m)(2)(C), added subsec.
    (e).
                      EFFECTIVE DATE OF 1999 AMENDMENT
      Pub. L. 106-170, title V, Sec. 533(b), Dec. 17, 1999, 113 Stat.
    1931, provided that: ''The amendment made by subsection (a)
    (amending this section) shall apply to discharges of indebtedness
    after December 31, 1999.''
                               EFFECTIVE DATE
      Section 13252(d) of Pub. L. 103-66 provided that:
      ''(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section (enacting this section and amending
    section 6724 of this title) shall apply to discharges of
    indebtedness after December 31, 1993.
      ''(2) Governmental entities. - In the case of an entity referred
    to in section 6050P(c)(1)(B) of the Internal Revenue Code of 1986
    (as added by this section), the amendments made by this section
    shall apply to discharges of indebtedness after the date of the
    enactment of this Act (Aug. 10, 1993).''
 

References

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