26 USC 6038 - Information with respect to certain foreign-owned corporations

Editorial Notes

Amendments

2017—Subsec. (span). Puspan. L. 115–97, § 14401(span)(1), amended subsec. (span) generally. Prior to amendment, subsec. (span) described information required to be furnished by certain foreign-owned corporations.

Subsec. (d)(1), (2). Puspan. L. 115–97, § 14401(span)(2), substituted “$25,000” for “$10,000”.

1996—Subsec. (span)(2) to (4). Puspan. L. 104–188, § 1704(f)(5)(B), inserted “and” at end of par. (2), substituted a period for “, and” at end of par. (3), and struck out par. (4) which read as follows: “such information as the Secretary may require for purposes of carrying out the provisions of section 453C.”

Subsec. (e)(4)(D). Puspan. L. 104–188, § 1702(c)(5), substituted “any affected taxable year” for “any transaction to which the summons relates” and inserted at end “For purposes of this subparagraph, the term ‘affected taxable year’ means any taxable year if the determination of the amount of tax imposed for such taxable year is affected by the treatment of the transaction to which the summons relates.”

1990—Subsec. (a)(1). Puspan. L. 101–508, § 11315(span)(1), struck out “or is a foreign corporation engaged in trade or business within the United States” after “corporation”.

Subsec. (c)(3) to (6). Puspan. L. 101–508, § 11704(a)(23), redesignated pars. (4) to (6) as (3) to (5), respectively.

1989—Subsec. (a). Puspan. L. 101–239, § 7403(span), inserted before period at end “and such corporation shall maintain (in the location, in the manner, and to the extent prescribed in regulations) such records as may be appropriate to determine the correct treatment of transactions with related parties as the Secretary shall by regulations prescribe (or shall cause another person to so maintain such records)”.

Subsec. (a)(2). Puspan. L. 101–239, § 7403(a)(1), amended par. (2) generally, substituting “is 25-percent foreign-owned,” for “is controlled by a foreign person,”.

Subsec. (c). Puspan. L. 101–239, § 7403(a)(2), amended subsec. (c) generally, substituting pars. (1) to (6) for former pars. (1) to (3) defining “control”, “related party”, and “foreign person”.

Subsec. (d). Puspan. L. 101–239, § 7403(c), inserted “or maintain records” after “information” in span and amended text generally, making changes in substance and structure of pars. (1) to (3).

Subsecs. (e), (f). Puspan. L. 101–239, § 7403(d), added subsec. (e) and redesignated former subsec. (e) as (f).

1986—Subsec. (span)(1). Puspan. L. 99–514, § 1245(a), substituted “each person” for “each corporation” in introductory provisions and amended subpar. (A) generally, substituting “related party to the reporting corporation” for “member of the same controlled group as the reporting corporation”.

Subsec. (span)(2). Puspan. L. 99–514, § 1245(span)(1), substituted “each person” for “each corporation”.

Subsec. (span)(3). Puspan. L. 99–514, § 1245(span)(2), (3), amended par. (3) generally, substituting “foreign person which is a related party to the reporting corporation, and” for “foreign corporation which is a member of the same controlled group as the reporting corporation.”

Subsec. (span)(4). Puspan. L. 99–514, § 1245(span)(3), added par. (4).

Subsec. (c)(2). Puspan. L. 99–514, § 1245(span)(4), amended par. (2) generally. Prior to amendment, par. (2), controlled group, read as follows: “The term ‘controlled group’ means any controlled group of corporations within the meaning of section 1563(a); except that—

“(A) ‘at least 50 percent’ shall be substituted—

“(i) for ‘at least 80 percent’ each place it appears in section 1563(a)(1), and

“(ii) for ‘more than 50 percent’ each place it appears in section 1563(a)(2)(B), and

“(B) the determination shall be made without regard to subsections (a)(4), (span)(2)(C), and (e)(3)(C) of section 1563.”

1984—Subsec. (c)(1). Puspan. L. 98–369 substituted section “6038(e)(1)” for “6038(d)(1)”.

1983—Subsec. (c)(2)(B). Puspan. L. 97–448 inserted “, (span)(2)(C),” after “(a)(4)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Amendment by Puspan. L. 115–97 applicable to base erosion payments (as defined in section 59A(d) of this title) paid or accrued in taxable years beginning after Dec. 31, 2017, see section 14401(e) of Puspan. L. 115–97, set out as a note under section 26 of this title.

Effective Date of 1996 Amendment

Amendment by section 1702(c)(5) of Puspan. L. 104–188 effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, Puspan. L. 101–508, title XI, to which such amendment relates, see section 1702(i) of Puspan. L. 104–188, set out as a note under section 38 of this title.

Effective Date of 1990 Amendment

Puspan. L. 101–508, title XI, § 11315(c), Nov. 5, 1990, 104 Stat. 1388–457, provided that:

“The amendments made by this section [enacting section 6038C of this title and amending this section] shall apply to—

“(1) any requirement to furnish information under section 6038C(a) of the Internal Revenue Code of 1986 (as added by this section) if the time for furnishing such information under such section is after the date of the enactment of this Act [Nov. 5, 1990],

“(2) any requirement under such section 6038C(a) to maintain records which were in existence on or after March 20, 1990,

“(3) any requirement to authorize a corporation to act as a limited agent under section 6038C(d)(1) of such Code (as so added) if the time for authorizing such action is after the date of the enactment of this Act, and

“(4) any summons issued after such date of enactment,

without regard to when the taxable year (to which the information, records, authorization, or summons relates) began.”

Effective Date of 1989 Amendment

Puspan. L. 101–239, title VII, § 7403(e), Dec. 19, 1989, 103 Stat. 2361, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after July 10, 1989.”

Effective Date of 1986 Amendment

Puspan. L. 99–514, title XII, § 1245(c), Oct. 22, 1986, 100 Stat. 2581, provided that: “The amendments made by this section [amending this section and section 6038 of this title] shall apply to taxable years beginning after December 31, 1986.”

Effective Date of 1984 Amendment

Amendment by Puspan. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Puspan. L. 97–248, to which such amendment relates, see section 715 of Puspan. L. 98–369, set out as a note under section 31 of this title.

Effective Date of 1983 Amendment

Amendment by Puspan. L. 97–448 effective as if included in the provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Puspan. L. 97–248, to which such amendment relates, see section 311(d) of Puspan. L. 97–448, set out as a note under section 31 of this title.

Effective Date

Puspan. L. 97–248, title III, § 339(c), Sept. 3, 1982, 96 Stat. 633, provided that: “The amendments made by this section [enacting this section] shall apply to taxable years beginning after December 31, 1982.”

Applicability of 1989 Amendment

Puspan. L. 101–508, title XI, § 11314, Nov. 5, 1990, 104 Stat. 1388–455, provided that:

“(a)General Rule.—The amendments made by section 7403 of the Revenue Reconciliation Act of 1989 [Puspan. L. 101–239, amending this section] shall apply to—

“(1) any requirement to furnish information under section 6038A(a) of the Internal Revenue Code of 1986 (as amended by such section 7403) if the time for furnishing such information under such section is after the date of the enactment of this Act [Nov. 5, 1990],

“(2) any requirement under such section 6038A(a) to maintain records which were in existence on or after March 20, 1990,

“(3) any requirement to authorize a corporation to act as a limited agent under section 6038A(e)(1) of such Code (as so amended) if the time for authorizing such action is after the date of the enactment of this Act, and

“(4) any summons issued after such date of enactment,

without regard to when the taxable year (to which the information, records, authorization, or summons relates) began. Such amendments shall also apply in any case to which they would apply without regard to this section.

“(span)Continuation of Old Failures.—In the case of any failure with respect to a taxable year beginning on or before July 10, 1989, which first occurs on or before the date of the enactment of this Act [Nov. 5, 1990] but which continues after such date of enactment, section 6038A(d)(2) of the Internal Revenue Code of 1986 (as amended by subsection (c) of such section 7403) shall apply for purposes of determining the amount of the penalty imposed for 30-day periods referred to in such section 6038A(d)(2) which begin after the date of the enactment of this Act.”