26 U.S.C. § 6038C : US Code - Section 6038C: Information with respect to foreign corporations engaged in U.S. business

Search 26 U.S.C. § 6038C : US Code - Section 6038C: Information with respect to foreign corporations engaged in U.S. business

(a) Requirement
If a foreign corporation (hereinafter in this section referred to
as the "reporting corporation") is engaged in a trade or business
within the United States at any time during a taxable year -
(1) such corporation shall furnish (at such time and in such
manner as the Secretary shall by regulations prescribe) the
information described in subsection (b), and
(2) such corporation shall maintain (at the location, in the
manner, and to the extent prescribed in regulations) such records
as may be appropriate to determine the liability of such
corporation for tax under this title as the Secretary shall by
regulations prescribe (or shall cause another person to so
maintain such records).
(b) Required information
For purposes of subsection (a), the information described in this
subsection is -
(1) the information described in section 6038A(b), and
(2) such other information as the Secretary may prescribe by
regulations relating to any item not directly connected with a
transaction for which information is required under paragraph
(1).
(c) Penalty for failure to furnish information or maintain records
The provisions of subsection (d) of section 6038A shall apply to -

(1) any failure to furnish (within the time prescribed by
regulations) any information described in subsection (b), and
(2) any failure to maintain (or cause another to maintain)
records as required by subsection (a),
in the same manner as if such failure were a failure to comply with
the provisions of section 6038A.
(d) Enforcement of requests for certain records
(1) Agreement to treat corporation as agent
The rules of paragraph (3) shall apply to any transaction
between the reporting corporation and any related party who is a
foreign person unless such related party agrees (in such manner
and at such time as the Secretary shall prescribe) to authorize
the reporting corporation to act as such related party's limited
agent solely for purposes of applying sections 7602, 7603, and
7604 with respect to any request by the Secretary to examine
records or produce testimony related to any such transaction or
with respect to any summons by the Secretary for such records or
testimony. The appearance of persons or production of records by
reason of the reporting corporation being such an agent shall not
subject such persons or records to legal process for any purpose
other than determining the correct treatment under this title of
any transaction between the reporting corporation and such
related party.
(2) Rules where information not furnished
If -
(A) for purposes of determining the amount of the reporting
corporation's liability for tax under this title, the Secretary
issues a summons to such corporation to produce (either
directly or as an agent for a related party who is a foreign
person) any records or testimony,
(B) such summons is not quashed in a proceeding begun under
paragraph (4) of section 6038A(e) (as made applicable by
paragraph (4) of this subsection) and is not determined to be
invalid in a proceeding begun under section 7604(b) to enforce
such summons, and
(C) the reporting corporation does not substantially comply
in a timely manner with such summons and the Secretary has sent
by certified or registered mail a notice to such reporting
corporation that such reporting corporation has not so
substantially complied,
the Secretary may apply the rules of paragraph (3) with respect
to any transaction or item to which such summons relates (whether
or not the Secretary begins a proceeding to enforce such
summons). If the reporting corporation fails to maintain (or
cause another to maintain) records as required by subsection (a),
and by reason of that failure, the summons is quashed in a
proceeding described in subparagraph (B) or the reporting
corporation is not able to provide the records requested in the
summons, the Secretary may apply the rules of paragraph (3) with
respect to any transaction or item to which the records relate.
(3) Applicable rules
If the rules of this paragraph apply to any transaction or
item, the treatment of such transaction (or the amount and
treatment of any such item) shall be determined by the Secretary
in the Secretary's sole discretion from the Secretary's own
knowledge or from such information as the Secretary may obtain
through testimony or otherwise.
(4) Judicial proceedings
The provisions of section 6038A(e)(4) shall apply with respect
to any summons referred to in paragraph (2)(A); except that
subparagraph (D) of such section shall be applied by substituting
"transaction or item" for "transaction".
(e) Definitions
For purposes of this section, the terms "related party", "foreign
person", and "records" have the respective meanings given to such
terms by section 6038A(c).