26 U.S.C. § 6034A — Information to beneficiaries of estates and trusts

(a) The fiduciary^* of an estate or trust required to file under section 6012(a) must, by the return's due date, give each beneficiary or nominee who receives a distribution or is allocated an item for the year a statement containing the return information the Secretary^* requires. (b) A nominee holding an interest for someone else must give the estate or trust that person's name, address, and other required information, and must give that person the information the estate or trust supplied under (a). (c)(1) A beneficiary must treat each reported item on the beneficiary's return consistently with the estate's or trust's return. (2)(A) This rule does not apply to an item if the entity filed a return and the beneficiary's treatment is or may be inconsistent, or the entity did not file, and the beneficiary files a statement with the Secretary identifying the inconsistency. (B) A beneficiary who proves that the beneficiary's return matches the statement received under (a), and elects this rule, is treated as having identified the inconsistency. (3) If the entity filed a return and the beneficiary does not identify the inconsistency, an adjustment to make the returns consistent is treated as a mathematical or clerical error under section 6213(b)(1); section 6213(b)(2) does not apply. (4) “Reported item” means an item for which (a) requires information. “Applicable entity” means the estate or trust of which the taxpayer^* is beneficiary. (5) Penalties for negligence or disregard are covered by part II of subchapter A of chapter 68.