Notes on 26 U.S.C. § 6038 : US Code - Notes

Search Notes on 26 U.S.C. § 6038 : US Code - Notes

(Added Pub. L. 86-780, Sec. 6(a), Sept. 14, 1960, 74 Stat. 1014;
amended Pub. L. 87-834, Sec. 20(a), Oct. 16, 1962, 76 Stat. 1059;
Pub. L. 88-554, Sec. 4(b)(6), Aug. 31, 1964, 78 Stat. 764; Pub. L.
94-455, title X, Sec. 1031(b)(5), title XIX, Sec. 1906(b)(13)(A),
Oct. 4, 1976, 90 Stat. 1623, 1834; Pub. L. 97-248, title III, Sec.
338(a)-(c), Sept. 3, 1982, 96 Stat. 631; Pub. L. 99-514, title XII,
Secs. 1202(c), 1245(b)(5), Oct. 22, 1986, 100 Stat. 2530, 2581;
Pub. L. 101-239, title VII, Sec. 7712(a), Dec. 19, 1989, 103 Stat.
2393; Pub. L. 101-508, title XI, Sec. 11701(f), Nov. 5, 1990, 104
Stat. 1388-508; Pub. L. 104-188, title I, Sec. 1704(f)(5)(A),
(t)(40), (46), Aug. 20, 1996, 110 Stat. 1880, 1889; Pub. L. 105-34,
title XI, Sec. 1142(a)-(e)(2), Aug. 5, 1997, 111 Stat. 981-983;
Pub. L. 105-206, title VI, Sec. 6011(f), July 22, 1998, 112 Stat.
818.)
PRIOR PROVISIONS
A prior section 6038 was renumbered section 6040 of this title.
AMENDMENTS
1998 - Subsec. (a)(2). Pub. L. 105-206, Sec. 6011(f)(1), struck
out "by regulations" before "prescribe".
Subsec. (a)(3). Pub. L. 105-206, Sec. 6011(f)(2), substituted
"the Secretary has prescribed the furnishing of such information on
or before the first day of such annual accounting period." for
"such information was required to be furnished under regulations in
effect on the first day of such annual accounting period."
Subsec. (e)(4). Pub. L. 105-206, Sec. 6011(f)(3), substituted
"such foreign business entity" for "such corporation" in two
places.
1997 - Pub. L. 105-34, Sec. 1142(a), inserted "reporting" after
"Information" and "and partnerships" after "corporations" in
section catchline.
Subsec. (a). Pub. L. 105-34, Sec. 1142(a), reenacted heading
without change.
Subsec. (a)(1). Pub. L. 105-34, Sec. 1142(a), reenacted heading
without change and amended text generally. Prior to amendment, par.
(1) consisted of subpars. (A) to (E) relating to general
requirements of information with respect to foreign corporations.
Subsec. (a)(2), (3). Pub. L. 105-34, Sec. 1142(e)(1)(A),
substituted "foreign business entity" for "foreign corporation" in
pars. (2) and (3).
Subsec. (a)(5). Pub. L. 105-34, Sec. 1142(d), added par. (5).
Subsec. (b). Pub. L. 105-34, Sec. 1142(c), (e)(1)(B), substituted
"foreign business entity" for "foreign corporation" in par. (1),
substituted "$10,000" for "$1,000" in pars. (1) and (2), and
substituted "$50,000" for "$24,000" in par. (2).
Subsec. (c)(1). Pub. L. 105-34, Sec. 1142(e)(1)(C), (2),
substituted "foreign business entity" for "foreign corporation" in
introductory provisions and inserted "in the case of a foreign
business entity which is a foreign corporation," after "(B)" in
subpar. (B).
Subsec. (c)(2). Pub. L. 105-34, Sec. 1142(e)(1)(C), substituted
"foreign business entity" for "foreign corporation" in introductory
provisions and in subpar. (B).
Subsec. (d). Pub. L. 105-34, Sec. 1142(e)(1)(D), substituted
"foreign business entity" for "foreign corporation".
Subsec. (e). Pub. L. 105-34, Sec. 1142(b), added pars. (1) and
(3), redesignated former pars. (1) and (2) as (2) and (4),
respectively, inserted "of corporation" after "Control" in par. (2)
heading, and substituted "foreign business entity" for "foreign
corporation" in two places in par. (4).
1996 - Subsec. (a)(1)(E), (F). Pub. L. 104-188, Sec.
1704(f)(5)(A), substituted period for ", and" at end of subpar. (E)
and struck out subpar. (F) which read as follows: "such information
as the Secretary may require for purposes of carrying out the
provisions of section 453C."
Subsec. (e). Pub. L. 104-188, Sec. 1704(t)(40), redesignated
subsec. (e), relating to cross references, as (f).
Subsec. (e)(2). Pub. L. 104-188, Sec. 1704(t)(46), made technical
amendment to directory language of Pub. L. 101-508. See 1990
Amendment note below.
Subsec. (f). Pub. L. 104-188, Sec. 1704(t)(40), redesignated
subsec. (e), relating to cross references, as (f).
1990 - Subsec. (e)(2). Pub. L. 101-508, as amended by Pub. L. 104-
188, Sec. 1704(t)(46), in subsec. (e) relating to definitions,
inserted at end of par. (2) "In the case of a specified foreign
corporation (as defined in section 898), the taxable year of such
corporation shall be treated as its annual accounting period."
1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 7712(a)(2), inserted
before period at end "or which the Secretary determines to be
appropriate to carry out the provisions of this title."
Subsec. (a)(4). Pub. L. 101-239, Sec. 7712(a)(1), added par. (4).
1986 - Subsec. (a)(1)(B). Pub. L. 99-514, Sec. 1202(c)(1),
amended subpar. (B) generally. Prior to amendment, subpar. (B) read
as follows: "the accumulated profits (as defined in section 902(c))
of such foreign corporation, including the items of income (whether
or not included in gross income under chapter 1), deductions
(whether or not allowed in computing taxable income under chapter
1), and any other items taken into account in computing such
accumulated profits;".
Subsec. (a)(1)(F). Pub. L. 99-514, Sec. 1245(b)(5), added subpar.
(F).
Subsec. (c)(4)(C). Pub. L. 99-514, Sec. 1202(c)(2), substituted
"post-1986 undistributed earnings" for "accumulated profits in
excess of income, war profits, and excess profits taxes".
1982 - Subsec. (a)(1). Pub. L. 97-248, Sec. 338(c)(2),
substituted "subsection (e)(1)" for "subsection (d)(1)".
Subsec. (b). Pub. L. 97-248, Sec. 338(a), added subsec. (b).
Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 97-248, Sec. 338(a), (b), (c)(1), (3),
redesignated former subsec. (b) as (c), substituted "Penalty of
reducing foreign tax credit" for "Effect of failure to furnish
information" in heading, inserted "of such failure" after "90 days
or more after notice" in par. (1), added par. (3), redesignated
former par. (3) as (4), and in par. (4) inserted reference to
subsection (b) in subpar. (B). Former subsec. (c) redesignated (d).
Subsecs. (d), (e). Pub. L. 97-248, Sec. 338(a), redesignated
former subsec. (c) as (d). Former subsec. (d), relating to
definitions, redesignated (e).
1976 - Subsecs. (a), (b). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary" wherever appearing.
Subsec. (b)(1). Pub. L. 94-455, Sec. 1031(b)(5), substituted in
subpar. (A) "section 904(c)" for "section 904(d)".
Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or
his delegate" after "Secretary".
1964 - Subsec. (d)(1). Pub. L. 88-554 substituted "subparagraphs
(A), (B), and (C) of section 318(a)(3)" for "the second sentence of
subparagraphs (A) and (B), and clause (ii) of subparagraph (C), of
section 318(a)(2)" in subpar. (A), and deleted "clause (i) of"
after "in applying" in subpar. (B).
1962 - Subsec. (a)(1). Pub. L. 87-834, among other changes,
substituted in introductory provisions "Every United States person
shall furnish" for "A domestic corporation shall furnish", in
subpar. (D)(i) "such person" for "any foreign corporation
controlled by the domestic corporation", in subpar. (D)(ii) "any
other corporation which such person controls" for "any foreign
subsidiary of a foreign corporation controlled by the domestic
corporation", in subpar. (D)(iii) "any United States person owning,
at the time the transaction takes place, 10 percent or more of the
value of any class of stock outstanding of such foreign
corporation" for "the domestic corporation or any shareholder of
the domestic corporation owning at the time the transaction takes
place 10 percent or more of the value of any class of stock
outstanding of the domestic corporation", and in subpar. (E) "each
United States person who is a shareholder" for "each citizen or
resident of the United States and each domestic corporation who is
a shareholder", and struck out provisions throughout the subsection
which related to foreign subsidiaries.
Subsec. (a)(2). Pub. L. 87-834 substituted provisions requiring
the information to be furnished for the annual accounting period
ending with or within the United States person's taxable year for
provisions which required such information to be furnished for the
annual accounting period ending with or within the domestic
corporation's taxable year, and struck out provisions which related
to the furnishing of information in the case of foreign
subsidiaries.
Subsec. (a)(3). Pub. L. 87-834 struck out provisions which
related to foreign subsidiaries.
Subsec. (b). Pub. L. 87-834, among other changes, substituted "If
a United States person fails to furnish" for "If a domestic
corporation fails to furnish" in the opening provisions, inserted
provisions relating to reduction of taxes in applying sections 901
and 960 of this title, to the maximum amount of reduction under
par. (1) for each failure to furnish information with respect to a
foreign corporation required under subsec. (a)(1), and making the
reduction provided by subsec. (b) inapplicable, in applying
subsecs. (a) and (b) of section 902 and subsec. (a) of section 960,
for purposes of determining the amount of accumulated profits in
excess of income, war profits, and excess profits taxes, and
eliminated provisions which related to the furnishing of
information with respect to foreign subsidiaries.
Subsec. (c). Pub. L. 87-834 substituted provisions empowering the
Secretary to provide for the furnishing of information by only one
person where two or more persons would be required to furnish
information under subsec. (a) with respect to the same foreign
corporation for the same period for provisions which required a
domestic corporation if at any time during its taxable year owned
more than 50 percent of the voting stock of a foreign corporation
to be deemed to be in control of such foreign corporation, and in
the case of a foreign corporation if at any time during its annual
accounting period owned more than 50 percent of the voting stock of
another foreign corporation, that such other corporation shall be
considered a foreign subsidiary of the corporation owning such
stock. The provisions relating to control are now contained in
subsec. (d) of this section.
Subsec. (d). Pub. L. 87-834 added par. (1) which was formerly
covered in part by subsec. (c) of this section, designated existing
provisions as par. (2), and eliminated from par. (2) provisions
which related to the annual accounting period of a foreign
subsidiary.
Subsec. (e). Pub. L. 87-834 designated existing provisions as
par. (1) and added par. (2).
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to annual accounting
periods beginning after Aug. 5, 1997, see section 1142(f) of Pub.
L. 105-34, set out as a note under section 318 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 effective, except as otherwise
provided, as if included in the provision of the Revenue
Reconciliation Act of 1989, Pub. L. 101-239, title VII, to which
such amendment relates, see section 11701(n) of Pub. L. 101-508,
set out as a note under section 42 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7712(b) of Pub. L. 101-239 provided that: "The amendments
made by subsection (a) [amending this section] shall apply to
returns and statements the due date for which (determined without
regard to extensions) is after December 31, 1989."
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 1202(c) of Pub. L. 99-514 applicable to
distributions by foreign corporations out of, and to inclusions
under section 951(a) of this title attributable to, earnings and
profits for taxable years beginning after Dec. 31, 1986, see
section 1202(e) of Pub. L. 99-514, set out as a note under section
902 of this title.
Amendment by section 1245(b)(5) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 1245(c) of
Pub. L. 99-514, set out as a note under section 6038A of this
title.
EFFECTIVE DATE OF 1982 AMENDMENT
Section 338(d) of Pub. L. 97-248 provided that: "The amendments
made by this section [amending this section] shall apply with
respect to information for annual accounting periods ending after
the date of the enactment of this Act [Sept. 3, 1982]."
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-554 effective Aug. 31, 1964, except that
for purposes of sections 302 and 304 of this title, such amendments
shall not apply to distributions in payment for stock acquisitions
or redemptions, if such acquisitions or redemptions occurred before
Aug. 31, 1964, see section 4(c) of Pub. L. 88-554, set out as a
note under section 318 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Section 20(e)(1) of Pub. L. 87-834 provided that: "The amendments
made by subsection (a) [amending this section] shall apply with
respect to annual accounting periods of foreign corporations
beginning after December 31, 1962."
EFFECTIVE DATE
Section 6(c) of Pub. L. 86-780, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The
amendments made by subsection (a) [enacting this section and
amending section 902 of this title] shall apply to taxable years of
domestic corporations beginning after December 31, 1960, with
respect to information relating to a foreign corporation or a
foreign subsidiary described in section 6038(a) of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection
(a)) for its annual accounting periods beginning after December 31,
1960."