26 U.S.C. § 6038B : US Code - Section 6038B: Notice of certain transfers to foreign persons

Search 26 U.S.C. § 6038B : US Code - Section 6038B: Notice of certain transfers to foreign persons

(a) In general
Each United States person who -
(1) transfers property to -
(A) a foreign corporation in an exchange described in section
332, 351, 354, 355, 356, or 361, or
(B) a foreign partnership in a contribution described in
section 721 or in any other contribution described in
regulations prescribed by the Secretary, or
(2) makes a distribution described in section 336 to a person
who is not a United States person,
shall furnish to the Secretary, at such time and in such manner as
the Secretary shall by regulations prescribe, such information with
respect to such exchange or distribution as the Secretary may
require in such regulations.
(b) Exceptions for certain transfers to foreign partnerships;
special rule
(1) Exceptions
Subsection (a)(1)(B) shall apply to a transfer by a United
States person to a foreign partnership only if -
(A) the United States person holds (immediately after the
transfer) directly or indirectly at least a 10-percent interest
(as defined in section 6046A(d)) in the partnership, or
(B) the value of the property transferred (when added to the
value of the property transferred by such person or any related
person to such partnership or a related partnership during the
12-month period ending on the date of the transfer) exceeds
$100,000.
For purposes of the preceding sentence, the value of any
transferred property is its fair market value at the time of its
transfer.
(2) Special rule
If by reason of an adjustment under section 482 or otherwise, a
contribution described in subsection (a)(1) is deemed to have
been made, such contribution shall be treated for purposes of
this section as having been made not earlier than the date
specified by the Secretary.
(c) Penalty for failure to furnish information
(1) In general
If any United States person fails to furnish the information
described in subsection (a) at the time and in the manner
required by regulations, such person shall pay a penalty equal to
10 percent of the fair market value of the property at the time
of the exchange (and, in the case of a contribution described in
subsection (a)(1)(B), such person shall recognize gain as if the
contributed property had been sold for such value at the time of
such contribution).
(2) Reasonable cause exception
Paragraph (1) shall not apply to any failure if the United
States person shows such failure is due to reasonable cause and
not to willful neglect.
(3) Limit on penalty
The penalty under paragraph (1) with respect to any exchange
shall not exceed $100,000 unless the failure with respect to such
exchange was due to intentional disregard.