26 U.S.C. § 6039F — Notice of large gifts received from foreign persons
submitted 30 years ago by Pub. L. 104-188 to r/title-26-INTERNAL-REVENUE-CODE · 355 words · no verdicts yet
This section requires a United States person receiving more than $10,000 in aggregate foreign gifts during a taxable year to provide information about each gift. It sets a monthly penalty for late reporting, with a reasonable-cause exception and inflation adjustment.
(a) If aggregate foreign gifts received in a taxable year* by a United States person*, other than a tax-exempt section 501(c) organization, exceed $10,000, the person must give the information about each gift that the Secretary* prescribes, at the prescribed time and in the prescribed way. (b) “Foreign gift” means an amount received from someone other than a United States person that the recipient treats as a gift or bequest. It excludes a qualified transfer under section 2503(e)(2) and a distribution properly reported under section 6048(c). (c)(1) If required information is not supplied on time, including extensions, the Secretary determines the tax consequences, and the person must pay on notice and demand 5 percent of the gift for each month of failure, up to 25 percent total. (2) This does not apply if reasonable cause and no willful neglect are shown. (d) For taxable years beginning after December 31, 1996, the $10,000 amount increases by that amount multiplied by the section 1(f)(3) cost-of-living adjustment, applying section 1(f)(3)(A)(ii) with “1995” replacing “2016.” (e) The Secretary must issue needed regulations.
If the value of the aggregate foreign gifts received by a United States person* (other than an organization described in section 501(c) and exempt from tax under section 501(a)) during any taxable year* exceeds $10,000, such United States person shall furnish (at such time and in such manner as the Secretary* shall prescribe) such information as the Secretary may prescribe regarding each foreign gift received during such year.
For purposes of this section, the term “foreign gift” means any amount received from a person other than a United States person which the recipient treats as a gift or bequest. Such term shall not include any qualified transfer (within the meaning of section 2503(e)(2)) or any distribution properly disclosed in a return under section 6048(c).
If a United States person fails to furnish the information required by subsection (a) with respect to any foreign gift within the time prescribed therefor (including extensions)—
the tax consequences of the receipt of such gift shall be determined by the Secretary, and
such United States person shall pay (upon notice and demand by the Secretary and in the same manner as tax) an amount equal to 5 percent of the amount of such foreign gift for each month for which the failure continues (not to exceed 25 percent of such amount in the aggregate).
Paragraph (1) shall not apply to any failure to report a foreign gift if the United States person shows that the failure is due to reasonable cause and not due to willful neglect.
In the case of any taxable year beginning after December 31, 1996, the $10,000 amount under subsection (a) shall be increased by an amount equal to the product of such amount and the cost-of-living adjustment for such taxable year under section 1(f)(3), except that subparagraph (A)(ii) thereof shall be applied by substituting “1995” for “2016”.
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.
Source credit: (Added Pub. L. 104–188, title I, § 1905(a), Aug. 20, 1996, 110 Stat. 1913; amended Pub. L. 115–97, title I, § 11002(d)(13), Dec. 22, 2017, 131 Stat. 2062.)
- 1996Enacted · Pub. L. 104-188 · 110 Stat. 1913
- 2017Amended · Pub. L. 115-97 · 131 Stat. 2062
A history note hasn’t been published yet. The record shows enactment by Pub. L. 104-188 on 1996-08-20.
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