26 U.S.C. § 6037 : US Code - Section 6037: Return of S corporation

Search 26 U.S.C. § 6037 : US Code - Section 6037: Return of S corporation

(a) In general
Every S corporation shall make a return for each taxable year,
stating specifically the items of its gross income and the
deductions allowable by subtitle A, the names and addresses of all
persons owning stock in the corporation at any time during the
taxable year, the number of shares of stock owned by each
shareholder at all times during the taxable year, the amount of
money and other property distributed by the corporation during the
taxable year to each shareholder, the date of each such
distribution, each shareholder's pro rata share of each item of the
corporation for the taxable year, and such other information, for
the purpose of carrying out the provisions of subchapter S of
chapter 1, as the Secretary may by forms and regulations prescribe.
Any return filed pursuant to this section shall, for purposes of
chapter 66 (relating to limitations), be treated as a return filed
by the corporation under section 6012.
(b) Copies to shareholders
Each S corporation required to file a return under subsection (a)
for any taxable year shall (on or before the day on which the
return for such taxable year was filed) furnish to each person who
is a shareholder at any time during such taxable year a copy of
such information shown on such return as may be required by
regulations.
(c) Shareholder's return must be consistent with corporate return
or Secretary notified of inconsistency
(1) In general
A shareholder of an S corporation shall, on such shareholder's
return, treat a subchapter S item in a manner which is consistent
with the treatment of such item on the corporate return.
(2) Notification of inconsistent treatment
(A) In general
In the case of any subchapter S item, if -
(i)(I) the corporation has filed a return but the
shareholder's treatment on his return is (or may be)
inconsistent with the treatment of the item on the corporate
return, or
(II) the corporation has not filed a return, and
(ii) the shareholder files with the Secretary a statement
identifying the inconsistency,
paragraph (1) shall not apply to such item.
(B) Shareholder receiving incorrect information
A shareholder shall be treated as having complied with clause
(ii) of subparagraph (A) with respect to a subchapter S item if
the shareholder -
(i) demonstrates to the satisfaction of the Secretary that
the treatment of the subchapter S item on the shareholder's
return is consistent with the treatment of the item on the
schedule furnished to the shareholder by the corporation, 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 shareholder does not comply with
subparagraph (A)(ii) of paragraph (2),
any adjustment required to make the treatment of the items by
such shareholder consistent with the treatment of the items on
the corporate 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) Subchapter S item
For purposes of this subsection, the term "subchapter S item"
means any item of an S corporation to the extent that regulations
prescribed by the Secretary provide that, for purposes of this
subtitle, such item is more appropriately determined at the
corporation level than at the shareholder level.
(5) Addition to tax for failure to comply with section
For addition to tax in the case of a shareholder's negligence
in connection with, or disregard of, the requirements of this
section, see part II of subchapter A of chapter 68.