26 USC 6038B - Notice of certain transfers to foreign persons

U.S Code last checked for updates: May 05, 2024

§ 6038B.

Notice of certain transfers to foreign persons

(a)

In general

Each United States person who—

(1)

transfers property to—

(A)

a foreign corporation in an exchange described in section 332, 351, 354, 355, 356, or 361, or

(B)

a foreign partnership in a contribution described in section 721 or in any other contribution described in regulations prescribed by the Secretary, or

(2)

makes a distribution described in section 336 to a person who is not a United States person,

shall furnish to the Secretary, at such time and in such manner as the Secretary shall by regulations prescribe, such information with respect to such exchange or distribution as the Secretary may require in such regulations.

(b)

Exceptions for certain transfers to foreign partnerships; special rule

(1)

Exceptions

Subsection (a)(1)(B) shall apply to a transfer by a United States person to a foreign partnership only if—

(A)

the United States person holds (immediately after the transfer) directly or indirectly at least a 10-percent interest (as defined in section 6046A(d)) in the partnership, or

(B)

the value of the property transferred (when added to the value of the property transferred by such person or any related person to such partnership or a related partnership during the 12-month period ending on the date of the transfer) exceeds $100,000.

For purposes of the preceding sentence, the value of any transferred property is its fair market value at the time of its transfer.

(2)

Special rule

(c)

Penalty for failure to furnish information

(1)

In general

(2)

Reasonable cause exception

(3)

Limit on penalty

(Added Pub. L. 98–369, div. A, title I, § 131(d)(1), July 18, 1984, 98 Stat. 664; amended Pub. L. 105–34, title XI, § 1144(a)–(c), Aug. 5, 1997, 111 Stat. 984, 985; Pub. L. 105–206, title VI, § 6011(g), July 22, 1998, 112 Stat. 818; Pub. L. 109–135, title IV, § 409(c), Dec. 21, 2005, 119 Stat. 2636.)

cite as: 26 USC 6038B