26 U.S.C. § 6034A : US Code - Section 6034A: Information to beneficiaries of estates and trusts

Search 26 U.S.C. § 6034A : US Code - Section 6034A: Information to beneficiaries of estates and trusts

(a) General rule
The fiduciary of any estate or trust required to file a return
under section 6012(a) for any taxable year shall, on or before the
date on which such return was required to be filed, furnish to each
beneficiary (or nominee thereof) -
(1) who receives a distribution from such estate or trust with
respect to such taxable year, or
(2) to whom any item with respect to such taxable year is
allocated,
a statement containing such information required to be shown on
such return as the Secretary may prescribe.
(b) Nominee reporting
Any person who holds an interest in an estate or trust as a
nominee for another person -
(1) shall furnish to the estate or trust, in the manner
prescribed by the Secretary, the name and address of such other
person, and any other information for the taxable year as the
Secretary may by form and regulations prescribe, and
(2) shall furnish in the manner prescribed by the Secretary to
such other person the information provided by the estate or trust
under subsection (a).
(c) Beneficiary's return must be consistent with estate or trust
return or Secretary notified of inconsistency
(1) In general
A beneficiary of any estate or trust to which subsection (a)
applies shall, on such beneficiary's return, treat any reported
item in a manner which is consistent with the treatment of such
item on the applicable entity's return.
(2) Notification of inconsistent treatment
(A) In general
In the case of any reported item, if -
(i)(I) the applicable entity has filed a return but the
beneficiary's treatment on such beneficiary's return is (or
may be) inconsistent with the treatment of the item on the
applicable entity's return, or
(II) the applicable entity has not filed a return, and
(ii) the beneficiary files with the Secretary a statement
identifying the inconsistency,
paragraph (1) shall not apply to such item.
(B) Beneficiary receiving incorrect information
A beneficiary shall be treated as having complied with clause
(ii) of subparagraph (A) with respect to a reported item if the
beneficiary -
(i) demonstrates to the satisfaction of the Secretary that
the treatment of the reported item on the beneficiary's
return is consistent with the treatment of the item on the
statement furnished under subsection (a) to the beneficiary
by the applicable entity, and
(ii) elects to have this paragraph apply with respect to
that item.
(3) Effect of failure to notify
In any case -
(A) described in subparagraph (A)(i)(I) of paragraph (2), and
(B) in which the beneficiary does not comply with
subparagraph (A)(ii) of paragraph (2),
any adjustment required to make the treatment of the items by
such beneficiary consistent with the treatment of the items on
the applicable entity's return shall be treated as arising out of
mathematical or clerical errors and assessed according to section
6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to
any assessment referred to in the preceding sentence.
(4) Definitions
For purposes of this subsection -
(A) Reported item
The term "reported item" means any item for which information
is required to be furnished under subsection (a).
(B) Applicable entity
The term "applicable entity" means the estate or trust of
which the taxpayer is the beneficiary.
(5) Addition to tax for failure to comply with section
For addition to tax in the case of a beneficiary's negligence
in connection with, or disregard of, the requirements of this
section, see part II of subchapter A of chapter 68.