U.S Code last checked for updates: May 06, 2024
§ 6048.
Information with respect to certain foreign trusts
(a)
Notice of certain events
(1)
General rule
(2)
Contents of notice
The notice required by paragraph (1) shall contain such information as the Secretary may prescribe, including—
(A)
the amount of money or other property (if any) transferred to the trust in connection with the reportable event, and
(B)
the identity of the trust and of each trustee and beneficiary (or class of beneficiaries) of the trust.
(3)
Reportable event
For purposes of this subsection—
(A)
In general
The term “reportable event” means—
(i)
the creation of any foreign trust by a United States person,
(ii)
the transfer of any money or property (directly or indirectly) to a foreign trust by a United States person, including a transfer by reason of death, and
(iii)
the death of a citizen or resident of the United States if—
(I)
the decedent was treated as the owner of any portion of a foreign trust under the rules of subpart E of part I of subchapter J of chapter 1, or
(II)
any portion of a foreign trust was included in the gross estate of the decedent.
(B)
Exceptions
(i)
Fair market value sales
(ii)
Deferred compensation and charitable trusts
Subparagraph (A) shall not apply with respect to a trust which is—
(I)
described in section 402(b), 404(a)(4), or 404A, or
(II)
determined by the Secretary to be described in section 501(c)(3).
(4)
Responsible party
For purposes of this subsection, the term “responsible party” means—
(A)
the grantor in the case of the creation of an inter vivos trust,
(B)
the transferor in the case of a reportable event described in paragraph (3)(A)(ii) other than a transfer by reason of death, and
(C)
the executor of the decedent’s estate in any other case.
(b)
United States owner of foreign trust
(1)
In general
If, at any time during any taxable year of a United States person, such person is treated as the owner of any portion of a foreign trust under the rules of subpart E of part I of subchapter J of chapter 1, such person shall submit such information as the Secretary may prescribe with respect to such trust for such year and shall be responsible to ensure that—
(A)
such trust makes a return for such year which sets forth a full and complete accounting of all trust activities and operations for the year, the name of the United States agent for such trust, and such other information as the Secretary may prescribe, and
(B)
such trust furnishes such information as the Secretary may prescribe to each United States person (i) who is treated as the owner of any portion of such trust or (ii) who receives (directly or indirectly) any distribution from the trust.
(2)
Trusts not having United States agent
(A)
In general
(B)
United States agent required
The rules of this paragraph shall apply to any foreign trust to which paragraph (1) applies unless such trust agrees (in such manner, subject to such conditions, and at such time as the Secretary shall prescribe) to authorize a United States person to act as such trust’s limited agent solely for purposes of applying sections 7602, 7603, and 7604 with respect to—
(i)
any request by the Secretary to examine records or produce testimony related to the proper treatment of amounts required to be taken into account under the rules referred to in subparagraph (A), or
(ii)
any summons by the Secretary for such records or testimony.
The appearance of persons or production of records by reason of a United States person being such an agent shall not subject such persons or records to legal process for any purpose other than determining the correct treatment under this title of the amounts required to be taken into account under the rules referred to in subparagraph (A). A foreign trust which appoints an agent described in this subparagraph shall not be considered to have an office or a permanent establishment in the United States, or to be engaged in a trade or business in the United States, solely because of the activities of such agent pursuant to this subsection.
(C)
Other rules to apply
(c)
Reporting by United States beneficiaries of foreign trusts
(1)
In general
If any United States person receives (directly or indirectly) during any taxable year of such person any distribution from a foreign trust, such person shall make a return with respect to such trust for such year which includes—
(A)
the name of such trust,
(B)
the aggregate amount of the distributions so received from such trust during such taxable year, and
(C)
such other information as the Secretary may prescribe.
(2)
Inclusion in income if records not provided
(A)
In general
(B)
Application of accumulation distribution rules
(d)
Special rules
(1)
Determination of whether United States person makes transfer or receives distribution
(2)
Domestic trusts with foreign activities
(3)
Time and manner of filing information
(4)
Modification of return requirements
(5)
United States person’s return must be consistent with trust return or Secretary notified of inconsistency
(Added Pub. L. 87–834, § 7(f), Oct. 16, 1962, 76 Stat. 987; amended Pub. L. 94–455, title X, § 1013(d)(1), (e)(3), (4), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1616, 1834; Pub. L. 97–248, title III, § 341(b), Sept. 3, 1982, 96 Stat. 635; Pub. L. 104–188, title I, § 1901(a), Aug. 20, 1996, 110 Stat. 1904; Pub. L. 105–34, title X, § 1027(b), title XVI, § 1601(i)(1), Aug. 5, 1997, 111 Stat. 926, 1092; Pub. L. 111–147, title V, § 534(a), Mar. 18, 2010, 124 Stat. 114.)
cite as: 26 USC 6048